Moove, the Nigerian startup that provides vehicle financing for ride-hailing services and is backed by Uber, is setting its sights on the United States for its latest expansion endeavor. Since August, the company has been actively recruiting for various positions in Los Angeles and California, signaling its commitment to establishing a presence in the U.S. market. This strategic move aligns with Moove’s objective to reach profitability by the year 2025.
The startup is currently seeking to fill several key positions in the U.S., including a managing director and, more recently, a head of debt capital markets. The latter role is described on LinkedIn as being pivotal in spearheading Moove’s fundraising initiatives, engaging with crucial financial partners, and orchestrating intricate financial transactions.
Co-founded by Ladi Delano and Jide Odunsi, Moove announced its ambitious expansion plans in March 2024, alongside news of a substantial $100 million funding round. This financial injection came from a consortium of investors, including Uber, Future Africa, The Latest Ventures based in Dubai, AfricInvest, Palm Drive Capital, and Triatlum Advisors.
While Moove has not specified which countries it will enter, the company has expressed its intention to focus on financing electric vehicles as part of its expansion. Currently operating in six markets—Nigeria, South Africa, Ghana, the United Kingdom, India, and the United Arab Emirates—Moove aims to penetrate six additional countries by 2025.
The U.S. expansion could mirror Moove’s successful 2023 venture into the UAE, where it introduced a fully electric vehicle fleet. This fleet contributed to the highest number of EV trips on the Uber UAE platform that year. Moove also manages EV fleets in the U.K. and has plans to roll out over 20,000 EVs on Uber in India, according to a report from March. Given Uber’s significant investment in Moove’s latest funding round, it is anticipated that the partnership will continue seamlessly in the U.S., where there is a growing appetite for electric vehicles.
Moove’s business model revolves around selling vehicle fleets to drivers for ride-hailing, logistics, and delivery services, with repayment structured as a percentage of the drivers’ weekly earnings. This allows drivers to pay for their vehicles in installments. In Nigeria, this model has encountered challenges as drivers struggle to meet payment targets due to inflation and rising fuel costs.
However, the U.S. market, with its more stable economy and established credit systems, is expected to present fewer obstacles for Moove’s business model. It remains to be seen whether Moove will adapt its revenue-based financing model, which caters to ride-hailing, logistics, mass transit, and instant delivery platforms, to the U.S. market or if it will maintain its current approach.
