Moove, a Nigerian startup that finances vehicles for ride-hailing companies, is expanding its operations to the United States. This move is part of the company’s strategy to achieve profitability by 2025.
Founded in 2020 by Ladi Delano and Jide Odunsi, Moove has been posting job openings for positions in Los Angeles and California since August. These roles include a managing director and a head of debt capital markets, indicating the company’s serious intentions for its U.S. expansion.
The company’s growth plans were first hinted at in March 2024 when it raised $100 million from investors including Uber, Future Africa, and several other venture capital firms. At that time, Moove announced plans to expand into six new countries by 2025, with a focus on financing electric vehicles.
Moove currently operates in six markets: Nigeria, South Africa, Ghana, the UK, India, and the UAE. Its business model involves selling fleets of vehicles to drivers who need them for ride-hailing, logistics, and deliveries. Drivers pay for the vehicles in installments, with Moove deducting a percentage of their weekly income.
The company’s expansion into the U.S. is expected to follow a similar pattern to its entry into the UAE in 2023. In the UAE, Moove operates a fleet composed entirely of electric vehicles, some of which accounted for the largest number of EV trips on the Uber UAE platform that year.
Moove’s partnership with Uber appears to be a key factor in its international expansion. The ride-hailing giant’s participation in Moove’s recent funding round suggests a borderless collaboration, which could facilitate Moove’s entry into the U.S. market.
The U.S. expansion comes at a time when Moove faces challenges in its home market of Nigeria. Due to inflation and fuel price increases, many Nigerian drivers are struggling to meet their payment targets. However, these issues are less likely to occur in the U.S., which has a more stable economy and reliable credit scoring systems.
It’s not yet clear if Moove will adjust its business model for the U.S. market or if it will maintain its current revenue-based financing approach. The company has not yet responded to requests for comment on its expansion plans.
This move into the U.S. market represents a significant step for Moove as it seeks to establish itself as a global player in the mobility financing sector. The success of this expansion could be crucial for the company’s goal of achieving profitability by 2025.
As Moove continues to grow, it will be interesting to see how it adapts its model to different markets and how it navigates the challenges and opportunities of operating in a mature market like the United States. The company’s focus on electric vehicles aligns well with growing trends in sustainable transportation, which could give it an edge in its new market.
