A recent article by Techcrunch states that Moove Africa, an automobile rental company, is moving towards launching hybrid and electric vehicle fleets. The article goes on to state that the debt and equity that the company possesses are not enough to meet the demands of the market. However, the company is implementing a loan repayment process that is more suitable to drivers in the long run.
Moove’s loan repayment process is more suitable to drivers than what traditionally exists in the market
Moove is a car sharing company that’s changing the way African drivers get access to new vehicles. It’s a platform that uses alternative credit scoring technology to underwrite loans. This allows Moove to finance up to 95% of the purchase, and sell new vehicles to drivers within five days of signing up. Currently, Moove is available in Accra, Johannesburg, and Lagos. However, the company plans to expand to other markets in the near future.
As of today, Moove has 12900 pre-approved sign-ups and a 60% month-to-month growth rate. The company is also planning to add financing to other vehicle types in the future. In the short-term, Moove is focused on fuel-efficient cars. But in the longer-term, it’s looking to build a line of electric and hybrid vehicles.
Moove’s loan repayment process is more suitable for drivers than the traditional Nigerian bank model, which typically charges drivers a deposit of between 10 and 50 percent of the purchase price. Banks often give loans with repayment periods of less than five years, and charge interest rates of 20 to 25%.
Moove’s debt and equity isn’t enough to cater to market demands
Moove’s total funding is $174.5 million in debt and equity. In addition, it has signed up 12,900 pre-approved signups. It has also rolled out in seven African cities. At the same time, the company is preparing for a big push in Southeast Asia.
Moove’s chief executive says it has already signed up more than 3 million rides in the past four months. The company is also working on a more sustainable EV solution for gig drivers in Africa. Moove is not the only company to try to capitalize on this market opportunity. As of now, there are roughly nine gig vehicle companies on the continent.
Moove is moving toward creating electric and hybrid vehicle fleets
Moove, a global start-up, is working toward creating electric and hybrid vehicle fleets. It provides vehicle financing and a platform to help mobility entrepreneurs in the car, ride-hailing and bus industries, as well as drivers of taxis, vans and limos. In addition to providing vehicle financing, Moove uses proprietary performance analytics and alternative credit scoring technology to underwrite loans.
Moove is now expanding to India as part of its global expansion. The company’s mission is to democratize access to new cars. Currently, it operates in Africa, the Netherlands, Ghana, Nigeria and Johannesburg.
It plans to launch a total of 5,000 vehicles in India within the first year. It is also working to add financing options for other types of vehicles. It is leveraging its experience in African markets to expand into other regions.
Moove’s founders were motivated to build an asset-based finance model to enable new vehicle ownership for the global mobility community. Moove’s target is to finance at least 60% of vehicles it finances globally as EVs, hybrids or fuel-efficient cars.