Kenya's Stanbic Bank has moved to auction several vehicles contracted by global mobile taxi hailing firm Uber.
This comes after the owners failed to service bank loans taken to purchase the vehicles.
In a notice published on local newspapers, the bank has put on sale 13 Suzuki Altos to recover cash advanced to the owners.
Stanbic Bank recovery officer Lillian Wangechi says the affected vehicles belong to Uber drivers who are unable to service their loans.
The cars, whose years of manufacture are 2017 and 2018, were purchased late last year and early this year.
“The bank is only trying to recover its money. The bank has set a committee to discuss on car prices after closing offer date on April 4th,” Wangechi says as quoted by The Star.
The auction spells doom to a partnership inked in early 2018 between Uber Kenya and local CMC Motors.
The partnership allowed the automobile firm to import the small, low fuel consumption cars for the cheaper Uber Chap Chap service.
The cars were sold at a subsidized cost of Sh835,000.
Last September, Stanbic said it had advanced loans to 350 taxi drivers to operate Uber services.
Uber Chap Chap was launched in February 2018 to add into existing services; UberX and UberSelect, which charger relatively higher rates.
A ride on Uber Chap Chap starts at Sh16 per kilometer, Sh4 per minute and a minimum fare of Sh100.
Uber Chap Chap drives have constantly lamented, terming its mode of operation as oppressive, leaving owners with little to service accumulating loans.