Moove, a mobility and vehicle-financing company backed by Uber, is ending its operations in Nigeria, marking its exit from the market where the company was founded. The decision comes barely a month after Uber announced its withdrawal from Nigeria after 12 years of operations. Moove's exit further reshapes Nigeria's app-based mobility sector, amid growing competition among operators such as Bolt and inDrive.
According to Moove, eligible vehicles valued at about ₦35 billion ($26.3 million) would be transferred into the full ownership of customers currently operating them, with no further payment required to Moove for the vehicles. This move is part of the company's efforts to support customers as it winds down its Nigerian operations. A visit to the Maryland, Lagos, showroom last week showed that it has been locked since the shut down of Uber in September.
Moove has provided vehicle financing to drivers on ride-hailing platforms, and more than 9,000 customers have used its Drive-to-Own and rental products in Nigeria. These customers have generated approximately ₦57 billion in revenue through vehicles financed by the company. Ladi Delano, Moove’s co-founder, co-CEO and chairman of its advisory board, said the figures reflected the livelihoods built around the company’s operations.
Delano added that the figures represented people earning incomes, supporting their families and building their futures. The company now operates about 42,000 vehicles across 29 cities globally, as it shifts its focus to other markets following its departure from Nigeria. Moove's exit may provide some relief to Nigerian drivers who relied on its financing model to access vehicles for commercial operations.
The transfer of eligible vehicles into the ownership of customers could be a significant benefit for those who have been using Moove's services. The company also said it would reward all its staff members with a free car, although it did not disclose the total number of employees eligible for the benefit. This move is seen as a gesture of appreciation for the staff's contributions to the company.
Moove's exit from Nigeria comes at a time when the country's app-based mobility sector is experiencing significant changes. The sector is witnessing growing competition among operators, with Bolt and inDrive being some of the major players. The exit of Moove and Uber may create new opportunities for other players in the market.
The impact of Moove's exit on the Nigerian mobility sector remains to be seen. However, the transfer of vehicle ownership to customers and the reward for staff members are seen as positive moves. The company's focus on other markets may also lead to new opportunities for growth and development.
Key points
- Moove's exit from Nigeria affects 9,000 customers who used its Drive-to-Own and rental products.
- Eligible vehicles valued at ₦35 billion will be transferred to customers' full ownership.
- Moove now operates 42,000 vehicles across 29 cities globally.
