Future

<p>Mobility financing company, <a href="https://www.moove.io/" target="_blank" rel="noopener">Moove</a> has raised $100 million in a new round of funding. The round was led by the company’s long-term e-mobility partner, Uber. The investment marks Uber’s first major investment into Africa.</p> 
<p>The round which brings Moove closer to a unicorn status with a $750 million valuation was also backed by the sovereign wealth fund Mubadala, which led the company’s previous round. The round was also backed by several other investors including the Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa.</p> 
<p>According to the vehicle financing company, the latest funding will be used to power its expansion plans as it gears up to launch into new markets. The company presently operates in 13 cities across six countries, including Nigeria, South Africa, Ghana, the U.K., India and the UAE. The company plans to use the new funding to expand its vehicle financing platform to 16 markets by the end of 2025.</p> 
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<p>Moove is also aiming to bolster its presence in India where it is currently operating in Mumbai, Hyderabad, and Bengaluru.</p> 
<p>Uber has since joined forces with Moove in India, supplying electric cars to Uber drivers in the country. Despite Moove’s growth, the startup has encountered challenges, including layoffs following a $140 million raise and driver protests casting shadows on its vehicle-financing business model.</p> 
<p><strong>See also: <em><a href="https://technext24.com/2024/02/26/moove-ubers-plan-to-back-100m-round/" data-type="post" data-id="227868">Moove’s $100m fund: Is Uber backing a partner or empowering drivers’ ‘oppression’?</a></em></strong></p> 
<h4 id="moove-and-uber-have-been-longtime-mobility-partners" class="wp-block-heading">Moove and Uber have been longtime mobility partners</h4> 
<p>This isn’t the first coming together of Uber and Moove in Nigeria as both companies have been longtime playmates in the mobility space. Moove, a vehicle financing company, realized long ago that opening its vehicle financing business to the general public wasn’t the smartest business choice. It had, instead, targeted the e-hailing sector and for that purpose, forged a strong partnership with Uber, one of the leading e-hailing companies in the world.</p> 
<p>Uber, on its part, only had to welcome more vehicles and more drivers, offering even cheaper options, an arrangement that remits the standard 20 per cent to its coffers. It was good business which didn’t require extra and the American ride-hailing company was only too glad to accept it, especially in a market like Nigeria where it was getting outpaced by rivals, Bolt.</p> 
<p>This partnership led to the birth of UberGo, a ride-hailing option on the Uber app which offered cheaper options to riders. To power this option, Moove provided the vehicles; the Suzuki hatchback cars famous for their small sizes and efficient fuel conservation. The low fuel usage is the main reason behind the cheaper fares offered by UberGo. Fares are 35 per cent lower than the regular rides.&nbsp;</p> 
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   UberGo Suzuki vehicles
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<p>It was a good business partnership, considering how increasingly popular UberGo has become. This popularity, of course, stems from its low prices and its vast availability in the areas they are available in.</p> 
<p>As the economic strain on Nigerians occasioned by fuel subsidy removal, inflation and exchange rate problems continue to deepen, the option would continue to find new appeal to even more riders.</p> 
<h5 class="wp-block-heading" id="on-mooves-100-million-funding-move">On Moove’s $100 million funding move</h5> 
<p>Even as UberGo has continued to grow in popularity, it still has several problems. The first is that because of the diminutive size of the vehicles, it isn’t desirable for people who want to commute with luggage.</p> 
<p>The second major problem is that it is only available in select places in Lagos; Lekki, Victoria Island, Surulere, Ikoyi and recently, Ikeja. But going by its success, it is perhaps time to expand to other parts of Lagos and indeed the country.</p> 
<p>Furthermore, with this new investment, Moove could be looking to invest in electric vehicle financing. This follows Uber’s resolve that all vehicles operating on its platform globally must be fully electric by 2040.</p> 
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   Moove may be looking at electric vehicle financing
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<p>The e-hailing company vowed to contribute $800 million between 2000 and 2025 to help drivers switch to battery-powered vehicles, including discounts for vehicles bought or leased from partner automakers</p> 
<p>The need for electric vehicles is becoming increasingly imperative in Nigeria as the cost of fuel is becoming a worry for drivers in the e-hailing space. Thus, as against having fuel-efficient vehicles, Moove may be looking at having zero-fuel vehicles. This, inadvertently, means the company may also invest in car battery charging facilities across its areas of operation.</p>

Moove raises $100m Series B funding led by Uber, inches closer to unicorn status with $750m valuation

Technext.ng

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