Moove, a Nigerian startup known for financing vehicles for ride-hailing companies such as Uber, is making strides in expanding its operations to the United States. Founded by Ladi Delano and Jide Odunsi, the four-year-old company has already made significant headway across six international markets and is now setting its sights on the U.S., where it aims to establish a strong foothold. This expansion is a vital step in Moove’s strategic plan to achieve profitability by 2025.
U.S. Expansion and Recruitment Efforts
Since August 2024, Moove has been actively recruiting for key positions in Los Angeles and California, including a managing director and a head of debt capital markets. The latter role is crucial in spearheading the company’s fundraising activities and building relationships with key financial stakeholders. According to the job listing on LinkedIn, this position will also play a significant role in structuring complex financial transactions, underlining Moove’s ambition to navigate the capital market efficiently as it scales in the U.S.
This expansion follows the company’s announcement in March 2024 of a $100 million funding round led by Uber, alongside other prominent investors such as Future Africa, The Latest Ventures (Dubai), AfricInvest, Palm Drive Capital, and Triatlum Advisors. While Moove has not disclosed the specific U.S. cities where it will operate, the company plans to finance primarily electric vehicles (EVs), aligning with global trends toward zero-emission transportation.
Expanding Moove’s Global Footprint
Moove’s entry into the U.S. marks its latest international expansion, complementing its existing operations in Nigeria, South Africa, Ghana, the U.K., India, and the UAE. The startup has ambitious plans to enter six more countries by 2025. Its U.S. venture is expected to mirror the success of its expansion into the UAE in 2023, where Moove operates a fully electric fleet. This fleet has contributed to the largest number of EV trips on the Uber platform in the UAE and has positioned the company as a major player in the region’s shift toward sustainable mobility solutions.
Similarly, in the U.K., Moove operates electric vehicle fleets, and in India, the company is preparing to introduce over 20,000 EVs on Uber’s platform. If Uber’s involvement in Moove’s $100 million raise is any indication, their partnership may facilitate a seamless expansion of Moove’s zero-emission vehicle fleets into the U.S. market, where the demand for electric vehicles is rapidly growing.
Moove’s Innovative Business Model
At the heart of Moove’s business is its innovative revenue-based financing model. The company finances fleets of vehicles for drivers involved in ride-hailing, logistics, mass transit, and delivery services. Drivers who acquire vehicles through Moove’s platform pay for them in installments, with the company deducting a percentage of their weekly earnings. This model has proven effective in helping drivers gain access to vehicles without the need for traditional credit facilities.
However, Moove’s model has faced challenges in Nigeria, where rising inflation and fuel price hikes have made it increasingly difficult for drivers to meet their payment obligations. These economic conditions have put a strain on Moove’s operations in its home country, prompting speculation about how the company might adapt its model for more stable markets like the U.S.
Adapting to the U.S. Market
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Unlike Nigeria, the U.S. boasts a relatively stable economy and well-established credit scoring systems, which may allow Moove to operate with fewer financial obstacles. The question remains whether Moove will adjust its business model to better suit the U.S. market or if it will maintain its existing revenue-based financing approach. In a market with more reliable economic conditions, Moove may have the flexibility to scale its model with greater predictability and lower risk.
In addition to financing ride-hailing services, Moove’s model is expected to support logistics and mass transit operations, providing flexibility as the company enters new territories. The adaptability of its model, paired with its focus on electric vehicles, could position Moove as a leader in sustainable mobility in the U.S. and beyond.
Conclusion
Moove’s expansion into the U.S. represents a critical step toward its goal of achieving profitability by 2025. With a focus on financing electric vehicles and expanding its global footprint, the startup is well-positioned to capitalize on the growing demand for sustainable transportation solutions. As Moove continues to scale, its innovative revenue-based financing model and strategic partnerships, particularly with Uber, will likely be key drivers of its success in both existing and new markets. While challenges remain, particularly in markets like Nigeria, Moove’s entry into the U.S. could be a turning point for the company as it seeks to solidify its position in the global mobility fintech space.