F&I Products Cater to Ride-Hail Drivers

By Alex Kwanten
Reporter, Automotive News

The coronavirus pandemic has reduced demand for ride-hailing, but experts expect gig driving to thrive long after the crisis. . . . For dealership finance and insurance desks and providers of aftermarket F&I products such as vehicle service contracts, extended warranties and GAP coverage, ride-hail drivers are a growing opportunity — but one that’s hard to unlock because of its shifting numbers. . . .

Preferred Warranties said it was starting to get traction on its ride-hail products when the coronavirus hit. Two percent of its warranties were ride-hail-related as of late February, and [PWI president Edmund] Field said that while that number has held steady during the crisis, “from a forecasting standpoint we expect that number to grow.”

Field points out that as dealers get more comfortable offering the products, high unemployment may lead to increases in requests for them. “Many people facing economic uncertainty may consider alternative employment like Lyft or delivery services,” he said. “I can see us being well-placed to accommodate those customers.”

Read the complete article on autonews.com (paywall).