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- Ride-hailing driver financing platform Moove secured $100 million led by Uber, marking Uber's first investment in Africa.
- Moove plans to use the funding to expand to 16 new markets by 2025 and is targeting different market segments beyond just ride-hailing.
- The company is prioritizing EVs globally but exploring CNG vehicles as an alternative solution in Africa due to infrastructure limitations.
Moove, a Nigerian mobility fintech startup, has secured $100 million in a Series B funding round.
This significant investment fuels the company's ambitious plans to expand its vehicle financing platform for ride-hailing and delivery drivers across 16 new markets by the end of 2025.
Notably, ride-hailing giant Uber led the round, marking its first investment in an African startup.
Focus on Electric Vehicles:
While expanding globally, Moove prioritizes electric vehicles (EVs) to align with Uber's zero-emission goals.
However, for markets like Africa with underdeveloped charging infrastructure, compressed natural gas (CNG) vehicles might be a more viable near-term solution.
Challenges and Support for Drivers:
Moove acknowledges the challenges faced by drivers in some regions, particularly Nigeria.
High fuel prices and currency fluctuations strain profitability. The company has implemented initiatives like reduced weekly payments and flexible repayment options to support drivers through these economic hardships.
Despite these challenges, Moove remains committed to Nigeria, citing its founding mission of creating income opportunities for African drivers.
Diversification is Key:
To mitigate risk and fuel growth, Moove employs a multi-pronged approach.
They operate across various geographical locations and cater to diverse market segments beyond just ride-hailing, including logistics, mass transit, and instant delivery services.
Interestingly, reports suggest a partnership with Bolt, a significant Uber competitor, potentially offering drivers more options within the ride-hailing category.
Profitability and Expansion Plans:
Moove targets profitability in the coming year and plans to leverage the fresh funding for strategic investments.
The UAE, a key market due to its integrated charging solution and high number of Uber EV trips, will see increased focus alongside continued investment in Africa, Europe, and Asia.
Additionally, Moove has set its sights on expanding into Southeast Asia and Latin America shortly.
"We see immense potential in the African market and remain committed to investing in our business there," stated Moove's CEO.
"However, profitability is crucial. We'll continue evaluating global opportunities and prioritize markets with clear paths to achieving positive unit economics."
Relocation and Strategic Partnership:
Following the funding round, Moove has relocated its headquarters to the UAE, strategically aligning with its growing focus on the region. This move reinforces the company's partnership with Mubadala, a key investor.
