P2P lender Society One and Uber partner up to tempt Australian drivers
Uber has partnered with Australian peer-to-peer lender, Society One, to help more Australian drivers get on the road for Uber by accessing cheaper car finance. The partnership is part of Uber’s new marketplace which aims to connect current and potential drivers to vehicle rental, leasing and finance providers. SocietyOne will offer car loans from between $5000 and $35,000 to new and existing Uber drivers, with interest rates starting at 6.45%. According to Uber, 10-15% of new driver applications in Australia come from people who either don’t have a car or whose car is more than nine years old, preventing them from joining as a driver, hence the new finance agreement.

Uber seems bent on world domination, but first, they'll need more drivers on the road.

Since it launched in Australia in March 2014, 20,000 UberX drivers have signed up, David Rohrsheim, general manager of Uber Australia-New Zealand, told Mashable Australia. But the company wants to increase that number.

Over the weekend, Uber launched its Australian Marketplace -- a platform that helps connect current or potential UberX drivers with providers that can help them rent or buy a car. "People already own a lot of cars [in Australia], so that has been driving the business already ... but this is added fuel," Rohrsheim said.

One barrier for interested drivers is that UberX cars in Australia must be no older than 10 years -- a decision Rohrsheim suggested was driven by insurance and community expectations.

Between 10% to 15% of new uberX applicants don't have cars or have a car older than nine years. "We're pretty upfront about the vehicle standards too, so there are probably even more that never apply," he added. "More or less, one in 10 will be out of date every year."

Across Brisbane, Canberra, Gold Coast, Melbourne, Perth and Sydney, five providers will now offer UberX drivers tailor-made deals they claim are competitive with major lenders. Peer-to-peer lender SocietyOne will offer car loan rates for Uber drivers depending on the driver's credit history. In addition, Splend will offer a rental service, Easifleet will offer an annual leasing package, Rideshare Solutions will have a rent-to-buy finance option, and Autoflex will offer another rent-to-buy option.

The deals are only available to those who have signed up to drive with Uber.

Uber boss David Rohrsheim launches UberX on Oct. 30, 2015 in Canberra, Australia. Credit: Martin Ollman/Getty Images

"From our point of view, it's an example of the way these innovative sharing economy companies can work together," Matt Symons, cofounder and CEO of SocietyOne, told Mashable Australia. "We see exciting opportunities for partnerships within and among sharing economy businesses. We think this will be the first of many."

Eventually, UberX drivers could even opt to pay off their loan from SocietyOne via automatic deductions from their Uber pay cheque. "It's not offered today, but the team is working on that capability," Symons said.

Despite the company's promotion of Uber Marketplace, Rohrsheim pushed back on the notion that by facilitating such a platform Uber was treading the line of becoming an employer rather than simply a rideshare platform working with contractors. "We're very clear this is their choice," he said.

In the U.S., there has been a growing debate over whether Uber is an employer and not simply an app. In June, California's Labor Commission classified one Uber driver as an employee of the company and not a contractor because the company was "involved in every aspect of the operation," including working out fees.

In Australia, the legality of Uber's operation differs from state to state. However, it has only been formally legalised in the Australian Capital Territory (ACT).