Uber Pours Funds into African Mobility Business Moove
Moove, a mobility fintech specialist based in Nigeria, has announced plans to expand its operations to a total of 16 markets by the end of 2025, following a $100 million investment from Uber. The investment has increased Moove's valuation to $750 million.
Founded in 2020, Moove provides vehicle financing to ride-hailing and delivery app drivers, with a unique business model that involves withholding a share of drivers' income as payment for the vehicles they purchase. The company is currently active in nine markets, including six African countries (Egypt, Ghana, Kenya, Nigeria, South Africa, and Uganda), India, the UAE, and the UK.
Moove's expansion will focus on increasing its presence in various markets, with a strategic emphasis on cleaner energy vehicles where possible. In line with Uber's goal of a zero-emission fleet by 2040, Moove's expansion will focus on electric vehicles (EVs) in the UK and UAE. However, in African markets, Moove is considering natural gas vehicles due to the lack of EV charging infrastructure.
Uber is currently Moove's largest partner for vehicle financing and supply. The partnership will be further strengthened as Moove plans to introduce 45,000 new vehicles on Uber's ride-hailing platform, starting with 5,000 electric and CNG vehicles in India in the first year, with plans to increase this to 30,000 vehicles over five years in key cities like Mumbai, Hyderabad, and Bangalore.
This investment marks Uber's first in an African startup. It is part of Moove's global expansion and sustainability efforts, which also include strategic expansions in the U.S., with a $1.2 billion debt raise to support the rollout of an autonomous, electric vehicle fleet in partnership with Waymo.
Moove's focus on EVs in certain markets aligns with Uber's ambition for a zero-emission fleet. However, the company acknowledges that full EV adoption in African markets is constrained by current economic and infrastructural challenges. As such, Moove is focusing on transitions from internal combustion engines to compressed natural gas vehicles first, and then eventually to EVs as infrastructure and economic conditions improve.
This investment and partnership are significant steps towards achieving Uber's goal of a zero-emission fleet and Moove's mission of providing sustainable transportation solutions in emerging and developed markets.
[1] Moove Press Release, [date], [link] [2] Uber Press Release, [date], [link] [3] TechCrunch, [date], [link] [4] BusinessDay, [date], [link] [5] Reuters, [date], [link]
Technology plays a crucial role in Moove's expansion and sustainable transportation solutions, as the company plans to introduce 45,000 new vehicles, focusing on electric and compressed natural gas vehicles, particularly in partnership with Uber. This alignment with Uber's goal of a zero-emission fleet underscores the significant impact technology will have on facilitating a cleaner, more sustainable future for mobility.
Moove's strategic focus on electric vehicles in certain markets and natural gas vehicles in African markets is indicative of the company's commitment to embracing technology and innovative solutions to overcome economic and infrastructural challenges and drive sustainable growth in the mobility sector.
