Turo, the peer-to-peer car-sharing company, is supporting Black entrepreneurs with a new pilot program called the Seed Initiative. The brand partnered with microloan provider Kiva to offer Black entrepreneurs up to $15,000 of interest-free funding to start their own car rental businesses. The initiative is present in over 14 American cities, allowing successful applicants to crowdfund up to $7,500 on Kiva, which Turo will match dollar for dollar.
"To be honest with you, we've had some really incredibly vocal and charismatic Black leaders within Turo who shared with us some really insightful data about the lack of access to capital, the average black American, and how that community, generally speaking, is really at a disadvantage in terms of accessing capital compared to any other community in the US," explained Turo CEO Andre Haddad. "In order to be able to participate and create that economic value, you have first to have a car. And unfortunately, there are lots of people who just can't afford to even buy a car, and therefore can't even access the marketplace."
Inclusive Microloan Providers
Seed Initiative Support Black Entrepreneurs With Interest-Free Loans
Trend Themes
1. Peer-to-peer Microloan - The Seed Initiative provides interest-free loans through Kiva on the platform of Turo to support Black entrepreneurs, showing the potential for more businesses to use peer-to-peer lending platforms for microloans.
2. Diversity and Inclusion Support - The Seed Initiative highlights the need for more companies to provide funding and support for diverse communities and entrepreneurs, demonstrating a disruptive innovation opportunity for more companies to prioritize diversity and inclusion initiatives.
3. Crowdfunding for Small Businesses - By partnering with Kiva to allow successful applicants to crowdfund up to $7,500, Turo sets an example for businesses to use crowdfunding as a means to support small business growth.
Industry Implications
1. Car Rental - Turo's Seed Initiative provides potential industry disruption in the car rental space by offering interest-free microloans to Black entrepreneurs to start their own car rental businesses and introducing new options for car rental customers.
2. Microfinance - Kiva's microloan model serves as an innovative example for businesses in the finance industry to provide more accessible funding options for small businesses and marginalized communities.
3. Diversity and Inclusion Consulting - The Seed Initiative's focus on supporting minority-owned businesses is an example of a disruption opportunity for consulting companies that are working on diversity and inclusion initiatives.