Unknown

Moove, the Nigerian-founded mobility startup valued at $2.1 billion, plans to exit the African country after Uber Technologies Inc. closed its operations in early September.

A Moove representative said the company was planning to “conclude operations in this market,” in response to questions on the matter, adding that the company did not have anymore details to share at this point in time.

The exit of the African mobility-financing startup, which was founded in Nigeria and built much of its early growth by supplying vehicles to drivers on Uber’s platform in the country, underscores the impact of an affordability crisis spurred by economic reforms in Africa’s most populous country. Uber closed its operations in Nigeria on Sept. 2, ending a 12-year presence in the country after launching in Lagos.

While Nigeria remains one of Africa’s largest consumer markets, operators have faced mounting pressure from currency volatility, inflation, rising vehicle costs and tougher operating conditions. Those challenges have made it increasingly difficult to generate the returns required for large-scale fleet financing and ride hailing businesses.

Moove initially built its business around a vehicle-financing model that enabled drivers operating on ride-hailing platforms to access cars and repay them through a share of their earnings. Nigeria served as both a testing ground and one of the company’s largest markets during its formative years. Uber’s abrupt exit left thousands of drivers searching for alternative platforms to sustain their business.

While Moove was founded in 2020 in Lagos, it now operates across 13 countries with some 42,000 vehicles. It is Uber’s largest global fleet partner and is a leading third-party operator of autonomous vehicles via a partnership with Waymo. In August, Moove closed a $250 million investment round led by Abu Dhabi sovereign wealth fund Mubadala that valued it at $2.1 billion.

Nigeria-Founded Moove to Exit Country After Uber Pulled Out