Uber backs African transportation venture Moove with significant investment
Moove, a mobility fintech specialist founded in Nigeria in 2020, has announced ambitious expansion plans, with a significant focus on electric vehicles (EVs) in regions boasting developed charging infrastructure.
This strategic move aligns with Uber's ambition for a zero-emission fleet, as Moove's expansion will see the introduction of 45,000 new vehicles on Uber's ride-hailing platform.
The funding for this expansion comes from a recent $100 million investment led by Uber, increasing Moove's valuation to a staggering $750 million. Uber is now Moove's largest partner in vehicle financing and supply.
In Africa, Moove is initially focusing on transitioning from internal combustion engines (ICE) to compressed natural gas (CNG) vehicles due to the continent's heavy reliance on fossil fuels and economic challenges. However, in markets outside Africa, such as the U.K. and UAE, Moove aims to be a leader in promoting sustainable mobility by putting more EVs on the road.
Moove's business model involves buying vehicle fleets and selling them to drivers, withholding a share of their income as payment. This model will support Moove's expansion to 16 markets by the end of 2025, including India and the UAE, where Moove is partnering with Uber to launch thousands of electric and CNG vehicles.
Uber's investment in Moove is its first in an African startup. This decision strengthens the bond between the two companies and further cements Uber's commitment to sustainable mobility solutions globally.
In Africa, Moove is also considering natural gas vehicles due to the lack of EV charging infrastructure. This pragmatic approach considers regional infrastructure and economic realities, positioning Moove and Uber to drive electrification where feasible and to prepare African markets for a gradual transition.
Moove is currently present in six African markets (Egypt, Ghana, Kenya, Nigeria, South Africa, and Uganda), as well as in India, the UAE, and the UK. This expansion will not only boost the availability of sustainable mobility solutions but also create opportunities for drivers in these markets.
[1] Source: Moove's official press release [2] Source: Uber India's official press release [4] Source: Moove's official blog post
Technology plays a crucial role in Moove's expansion plans, with electric vehicles (EVs) being introduced in markets with developed charging infrastructure. Uber's investment in Moove also reflects a commitment to sustainable mobility solutions, leveraging technology to drive electrification and promote sustainable transportation.
