Perhaps, just perhaps you are still wondering how Moove works. It’s actually simple. The fast-rising startup was able to raise $23M to create flexible options for drivers to own cars in Nigeria and indeed across the African continent.
“Now how does that benefit anyone,” you are still querying.
Moove is Uber’s preferred car financing and vehicle supply partner in sub-Saharan Africa. The company embeds its alternative credit-scoring technology, allowing access to proprietary performance and revenue analytics to underwrite loans. It provides loans to these drivers by selling them new vehicles and financing up to 95% of the purchase within five days of sign up. They can choose to pay back their loans over 24, 36 or 48 months, using a percentage of the weekly revenue generated while driving on Uber.
Need we scream it louder? Moove is an African-born, global mobility fintech that provides revenue-based vehicle financing and financial services to mobility.
Moove has democratized access to vehicle ownership and empowering mobility entrepreneurs, with a mission to changing people’s lives.
Unlike other automobile financing players, Moove only finances new cars and leases them to mobility entrepreneurs in a scheme that allows them to complete payment and own the vehicles within four years.
Consumertrics recalls that Moove was founded by Ladi Delano and Jide Odunsi in 2019. In a chat with the media, Delano said he and Odunsi, whilst trying to figure out the problems to solve in Nigeria after years of running successful businesses, were left startled by the figures highlighted above: Fewer than than a million new cars sold in an entire continent and more than 17 million in the U.S. alone.
“It became clear to us that people aren’t buying cars in Africa because there’s no access to finance. When you look anywhere else in the world, you have financing in most parts of the developed world when you try to buy a car. It’s that way in the U.K., or Europe and the U.S. And that’s what’s driving mobility drive and vehicle sales,” Delano said during the interview.
The founders saw it as a huge task to address this deficit and figured that deploying an asset financing model was the go-to approach. Moove says it is democratizing vehicle ownership by employing a revenue-based vehicle financing model. However, this applies to only a subset of the driving population across the continent Moove calls mobility entrepreneurs.
These include drivers who work in the mobility space (car-hailing, ride-hailing and bus-hailing, among others). Although they make up a small part of Africans who need Moove’s services, Delano says the market for “mobility entrepreneurs” is enormous.
What’s the rational behind backing ride-hailing drivers instead of the overall populace? Delano told the media that inasmuch as Moove is changing how people have access to new cars in Africa, he wants the company to solve some of the unemployment problems facing the continent, even more so in Nigeria.
So instead of providing the service for individuals from all spheres of life who cannot guarantee a payback, why not target drivers who would use the opportunity to work and, in turn, generate income to pay back.
