Tech Safari Take: Uber's big African Moove

Welcome to the very first Tech Safari Take!

There are hundreds of headlines in African tech each week, and it’s hard to keep up with what’s going on - let alone have a perspective on it.

So, each Friday, I’ll look at an interesting story that went down in African Tech in the week and give you the quick ‘Tech Safari Take’.

And because these come on a Friday, expect a light, interesting, and fun read to ease you into the weekend.

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Uber is in talks to invest $100 million into African startup Moove - in what could be the biggest deal in Africa’s mobility space.

And this deal isn’t just about the money - it’s a big bet Uber is making on Africa’s gig economy.

Ready? Let’s drive in

The Backstory

Moove was founded in Nigeria, by Jide Odunsi and Ladi Delano in 2020.

The company loans African drivers up to 95% of the value of a car, then helps them pay it off as they work on ride-hailing platforms.

Moove uses a model called ‘drive-to-own’ - where they loan drivers up to 95% of the value of a car, which is paid off as they work on ride-hailing platforms - like Uber, Bolt and Swvl.

Moove might be one of Africa’s fastest-growing startups.

Since launching four years ago, they have raised $335 million ($175m in debt and $150m in equity).

And since their Series A in 2021 and their last fundraising round in 2023, Moove has been on the move:

• Adding 12,000 customers and completing 22 million trips across 13 countries

• Growing revenue by 17x

• Hitting $90m in annual recurring revenue

• Entering African markets like Kenya, Ghana, South Africa, and Egypt

• And going global - into countries like the UK, UAE, and India

That’s a lot of growth.

So now, Moove is in talks to raise $100m from one of the world's biggest companies: Uber.

It’s a lot of cash.

The Context

The global gig economy is huge — it’s a $455 billion market.

In Africa alone, there are 100m gig workers.

And to date, Uber has crossed over 1 billion rides in Africa.

But there’s a problem for ride-hailing companies like Uber:

Africa’s car penetration is low.

Across the world, 18 out of 100 people will own a car.

But in Africa, only 3 out of 100 own a car.

There are only 26 million cars in Africa - a continent of 1.4 billion people.

Ride-hailing in Africa could be much bigger than it is, but cars are expensive to buy upfront.

And the problem isn’t exclusive to Africa - it exists in other emerging markets like UAE and India.

Moove’s business aims to close this car financing gap with its ‘Drive-to-Own’ model.

Ladi Delano, the cofounder of Moove said, “We have managed to build a Nigerian solution for what we now know is a global problem, and it’s exciting for us to take this solution to the rest of the world.”

If he’s right, Moove’s can unlock more of Africa's (and the rest of the world’s) gig economy market for Uber.

The Tech Safari Take

Uber’s play with Moove is about more than just a return on investment.

It’s a move 😉 to open up Africa’s gig economy

By financing vehicles and getting more potential drivers on the road, Moove is opening up ride-hailing potential across Africa and the world.

And the equation is great for Uber, because:

Growth for Moove = More drivers on the road

And more drivers on the road = more growth for Uber.

A win on both sides.

While the deal isn’t confirmed yet, we think it’ll Moove forward 😉

What do you think of Uber and Moove’s partnership? Where do you think it might lead?

Let us know on LinkedIn here.

3️⃣ things we’re reading this week

💡 Today is International Women’s Day - we teamed up with Founders Factory Africa to explore Africa’s Venture funding gap. Check it out here.

📕 This week, we’re reading about how Canva grew to 130m+ visitors on their website every month. Check it out here.

🤯 Have you seen the situation between Binance and the Nigerian government? It’s gnarly, read more here.

Tweet of the week

Crypto was extra dramatic in Nigeria this week, and this tweet is a 10/10 analogy😂

That’s a wrap! Hope you enjoyed our first Tech Safari Take.

If you did, shoot us a quick email and let us know 🙏🏾

Until next week.

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