Uber-backed Moove takes its search for profitability to America

Moove, the Uber-backed Nigerian startup that finances vehicles for ride-hailing companies, is expanding operations to the U.S. Since August, the company has listed vacancies for roles in Los Angeles and California. This expansion supports the startup’s plan to achieve profitability in 2025.

Those U.S. roles include a managing director and more recently a head of debt capital market who will be “critical in driving our fundraising efforts, engaging with key financial stakeholders, and structuring complex transactions,” according to a LinkedIn listing.

The four-year-old startup, founded by Ladi Delano and Jide Odunsi, shared its expansion plans in March 2024 when it announced a$100 million raise from Uber, Future Africa, Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, and Triatlum Advisors.

Moove did not disclose the destination countries but said it will majorly finance electric vehicles upon entry. The company, which operates in six markets—Nigeria, South Africa, Ghana, the U.K., India and the UAE, plans to expand to six additional countries by 2025.

Moove did not immediately respond to requests for comments.

The U.S. expansion may play out like  Moove’s 2023 move into the UAE where it operates a 100% EV fleet some of which accounted for the largest number of EV trips on the Uber UAE platform in the same year. It also operates EV fleets in the U.K. and is preparing to introduce more than 20,000 EVs on Uber in India, per a March report.

If Uber’s partnership with Moove is borderless, as its participation in the startup’s $100 million raise suggests, the company’s zero-emission mandate may see a similar soft landing in the U.S. where electric vehicles are increasingly popular.

The mobility fintech sells fleets of vehicles to drivers who need them for ride-hailing, logistics and deliveries. It deducts a percentage of the drivers’ income weekly enabling them to pay for the car in installments.

This model has met roadblocks in Nigeria where drivers are increasingly finding it difficult to meet payment targets due to inflation and fuel price hikes.

It is unlikely that the startup will face similar challenges in the U.S. with a relatively stable economy and reliable credit scoring systems.

It is not yet clear if the company will adjust its business model to fit into these new markets or if the revenue-based financing it offers to ride-hailing, logistics, mass transit, and instant delivery platforms, will remain unchanged.

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