Moove, the Uber-backed Nigerian startup, is setting its sights on the U.S. as part of its ambitious global expansion strategy. The four-year-old company, which specializes in providing vehicle financing for drivers in ride-hailing, logistics, and delivery services, has already posted vacancies for roles in Los Angeles, California, signaling its imminent entry into the American market. This expansion forms part of Moove’s broader goal of achieving profitability by 2025.
A Bold Move into the U.S. Market
Founded by Nigerian entrepreneurs Ladi Delano and Jide Odunsi, Moove has carved out a niche in the mobility fintech space by offering vehicles to drivers who cannot afford to buy cars outright. The company’s business model allows drivers to pay for vehicles in installments through a revenue-based financing model that deducts a portion of their weekly income. This system has enabled Moove to rapidly scale in Africa and beyond, with operations in Nigeria, South Africa, Ghana, the U.K., India, and the UAE.
As Moove prepares for its U.S. launch, it has begun recruiting key personnel. The startup has posted job listings for high-profile positions such as managing director and head of debt capital markets. According to the company’s LinkedIn listing, the head of debt capital markets role will be crucial in raising funds and managing complex financial transactions as Moove continues to grow.
The U.S. expansion follows Moove’s $100 million funding round in March 2024, led by Uber alongside Future Africa, Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, and Triatlum Advisors. This financial backing has given Moove the capital necessary to extend its reach to six new markets by 2025, with a strong focus on financing electric vehicles (EVs).
Focusing on Electric Vehicles
Moove’s U.S. expansion is expected to mirror its recent moves into the UAE, where it operates a fully electric vehicle fleet, some of which made up the largest number of EV trips on Uber’s platform in the country. The company has also introduced EV fleets in the U.K. and is preparing to deploy over 20,000 electric vehicles on Uber’s platform in India. These expansions are in line with Moove’s commitment to zero-emission vehicles.
Given the increasing popularity of EVs in the U.S., Moove’s decision to focus on electric vehicles as part of its expansion strategy is timely. The U.S. market has seen a growing demand for electric vehicles, bolstered by government incentives, the increasing availability of charging infrastructure, and widespread environmental concerns. This trend creates a favorable environment for Moove’s business model, especially with its backing from Uber, a global leader in ride-hailing services.
Challenges and Opportunities in the U.S. Market
Despite Moove’s success in other regions, its model has encountered challenges in Nigeria, where inflation and fuel price hikes have made it difficult for drivers to meet payment targets. These challenges highlight some of the risks associated with operating in volatile markets, where drivers struggle to maintain stable incomes. However, the U.S. presents a much more stable economic environment, with a well-established credit scoring system that could provide Moove with more reliable revenue streams.
In addition, Moove’s focus on EVs may provide it with a significant advantage in the U.S. The country has been rapidly embracing electric vehicles, with a range of government policies aimed at reducing carbon emissions and encouraging green mobility solutions. Moove’s commitment to financing EVs aligns with these trends, offering a clear pathway for growth in the U.S. market.
Adapting to a New Market
One question remains: will Moove adapt its business model to better fit the U.S. market, or will it stick to the revenue-based financing it currently offers in other regions? Moove’s model has been successful in environments where traditional credit is less accessible, but the U.S., with its established credit systems and a wide range of vehicle financing options, may require adjustments.
It’s not yet clear whether Moove will tweak its offerings to better suit the needs of American drivers or if it will continue its current approach. However, the startup’s track record of scaling across diverse markets and its ability to secure major partnerships suggest that it has the flexibility to adapt and succeed in this new landscape.
The Road Ahead for Moove
As Moove expands into the U.S., it faces both significant opportunities and potential challenges. The company’s innovative financing model, its focus on electric vehicles, and its strategic partnership with Uber provide a strong foundation for success. However, the U.S. market’s unique characteristics—such as its competitive vehicle financing landscape and established credit systems—may require Moove to refine its approach.
Moove’s entry into the U.S. represents a significant step toward its goal of becoming a global leader in mobility fintech. If the company can successfully navigate the challenges of this new market, it stands to unlock significant growth opportunities in the world’s largest economy.