Uber commits funds to African transportation company Moove's growth
Moove, a pan-African mobility fintech specialist, is set to expand its operations with a significant focus on introducing electric vehicles (EVs) and compressed natural gas (CNG) vehicles in various markets. The expansion, backed by a $100 million investment from Uber, aims to launch 45,000 new vehicles on Uber's platform by the end of 2025.
The core of Moove's expansion with Uber centers on electric and CNG vehicle deployment, particularly in India. The initiative plans to launch 5,000 electric and CNG vehicles in the first year, ramping up to 30,000 vehicles within five years. The cities of Mumbai, Hyderabad, and Bangalore will be the initial focus, with the goal of enhancing sustainable transportation and providing vehicle financing to mobility entrepreneurs excluded from traditional financial services.
In the UK and UAE, Moove's expansion will prioritize electric vehicles in line with Uber's goal of achieving a zero-emission fleet by 2040. However, for Africa, Moove is considering natural gas vehicles due to the lack of EV charging infrastructure.
Moove's business model involves buying vehicle fleets and selling them to drivers via its platform, retaining a share of their income as payment for the vehicle. This approach provides vehicle financing to ride-hailing and delivery app drivers, a service that is much needed in many African markets.
The cash injection from Uber's investment has increased Moove's valuation to $750 million. Currently, Moove is active in a total of nine markets, including Africa, India, the UAE, and the UK. Moove is present in six African markets (Egypt, Ghana, Kenya, Nigeria, South Africa, and Uganda), as well as in India, the UAE, and the UK.
This partnership between Moove and Uber not only aims to secure a steady flow of new drivers for Uber's ride-hailing platform but also further solidifies the relationship between the two companies. It marks Uber's first investment in an African startup, making Moove its largest partner in vehicle financing and supply.
With this expansion, Moove is poised to contribute to scaled sustainable mobility and financial inclusion in the regions it operates, making transportation more accessible and affordable for many.
- Moove's operations expansion, with a primary focus on electric and compressed natural gas vehicles, is supported by a $100 million investment from Uber, aiming to introduce 45,000 new vehicles on Uber's platform by 2025.
- In India, the expansion initiative plans to launch 5,000 electric and CNG vehicles in the first year, targeting cities like Mumbai, Hyderabad, and Bangalore, with the goal of promoting sustainable transportation and offering vehicle financing to mobility entrepreneurs.
- In the UK and UAE, Moove will prioritize electric vehicles, aligning with Uber's goal of achieving a zero-emission fleet by 2040, while considering natural gas vehicles for African markets due to the lack of EV charging infrastructure.
- Moove's business strategy is centered around buying vehicle fleets and selling them to drivers via its platform, earning a share of their income, and providing necessary vehicle financing for ride-hailing and delivery app drivers in various markets, including Africa, India, the UAE, and the UK.
