Nigerian-born mobility fintech company, Moove, has made its long-awaited entry into the U.S. market, marking a key milestone in its ambitious plan to become a global player in ride-hailing finance. The startup, backed by Uber, is on a mission to expand its operations beyond Africa, and the move into the U.S. is a strategic part of Moove’s efforts to reach profitability by 2025.
Since August, Moove has been hiring for various roles based in California, including positions for a Managing Director and a Head of Debt Capital Markets, as part of its U.S. launch. The Head of Debt Capital Markets will be responsible for leading the company’s fundraising efforts and engaging with critical financial stakeholders to support Moove’s rapid growth.
Founded in 2020 by Ladi Delano and Jide Odunsi, Moove aims to revolutionize mobility across emerging markets by offering financial services that enable ride-hailing drivers to access vehicles through a revenue-based financing model. This model allows drivers to purchase vehicles gradually, paying in weekly installments that are deducted directly from their earnings. In doing so, Moove has made vehicle ownership more accessible, especially in regions where traditional financing options are limited.
Expansion into the U.S. Market
Moove’s U.S. expansion builds on the momentum the company has gained across Africa, Europe, and the Middle East. With successful operations in Nigeria, Ghana, South Africa, the U.K., India, and the UAE, Moove is poised to take advantage of the growing demand for electric vehicles (EVs) in the U.S. market.
The expansion into the U.S. comes after Moove raised $100 million in a Series B funding round earlier this year. Investors in the round included major players like Uber, Future Africa, Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, and Triatlum Advisors. The capital injection has fueled Moove’s international growth plans, with the U.S. being a particularly attractive target market due to its mature economy, strong demand for EVs, and robust credit scoring systems.
Moove’s success in the UAE, where it operates a 100% electric vehicle fleet, is a potential indicator of how its U.S. operations might evolve. In the UAE, Moove’s fleet accounted for the largest number of EV trips on Uber’s platform in 2023. Similarly, in the U.K., the company has introduced EV fleets, and plans are underway to deploy over 20,000 EVs on Uber’s platform in India by the end of 2024.
The U.S. expansion reflects Moove’s commitment to sustainability, as the company plans to finance mainly electric vehicles in the new market. With an increasing emphasis on zero-emission transportation in the U.S., especially in states like California, Moove’s focus on EVs aligns with government policies and consumer preferences for more eco-friendly mobility solutions.
Challenges and Opportunities
Moove’s revenue-based financing model has found success across various markets, particularly in regions where access to traditional vehicle financing is limited. The company provides vehicles not only for ride-hailing drivers but also for logistics, mass transit, and delivery services, making it a key player in the broader mobility ecosystem.
However, Moove has faced challenges in its home market of Nigeria, where inflation and rising fuel prices have made it difficult for drivers to meet their payment obligations. This has caused strain on its operations in the region, as many drivers have struggled to maintain consistent income amid economic volatility.
In contrast, the U.S. offers a relatively stable economic environment with more reliable income streams and credit scoring systems. Moove will likely benefit from these conditions, allowing drivers to make timely payments and providing the company with a more predictable revenue stream. Additionally, the U.S. market’s growing embrace of EVs offers Moove the chance to capitalize on the trend toward sustainable transportation.
Future Growth
Moove has set its sights on expanding to six additional countries by 2025. While the company has not yet disclosed all the specific markets it plans to enter, its focus on EVs and strategic partnerships with platforms like Uber signal that Moove will continue to prioritize regions with high demand for sustainable mobility solutions.
As Moove enters the U.S., one question remains: Will it adapt its business model to better suit the local market, or will it maintain the same structure that has worked across its other markets? The company’s flexibility in navigating different economic conditions and regulatory environments will be crucial to its success in the U.S. and beyond.
Moove’s journey from its Nigerian roots to its expansion into global markets is a testament to its founders’ vision of democratizing vehicle ownership for underserved drivers worldwide. As the company continues to grow, its U.S. debut marks an important step in Moove’s goal of becoming a global leader in the mobility finance sector.
Looking Ahead
As Moove navigates its entry into the U.S. market, the company is keen to leverage its partnerships, particularly with Uber, to scale its operations efficiently. Uber’s participation in Moove’s $100 million funding round underscores the strength of the relationship between the two companies and suggests that Moove’s U.S. expansion could lead to similar successes in other parts of the world.
While Moove did not immediately respond to requests for comment on its U.S. launch, the company’s growth trajectory and strategic moves hint at an ambitious future. As it positions itself as a key enabler of electric vehicle adoption, Moove’s expansion to the U.S. could be a game-changer, not just for the company, but for the entire ride-hailing industry.
With its innovative financing model and commitment to sustainability, Moove is poised to redefine mobility financing on a global scale.
