Moove, an Uber-backed mobility startup, has expanded its operations into Mexico, just one month after entering the US market. The company offers vehicle financing solutions for gig drivers, utilizing a drive-to-own model.
Moove’s expansion into Mexico has been in the works for several months. The company had previously listed a job opening for an Onboarding Manager in Mexico to promote its car financing options to drivers.
The startup’s drive-to-own model involves collecting a portion of drivers’ earnings until they pay off their car debt. Credit scoring systems play a crucial role in this process. Mexico has two credit scoring systems – the Buró and the FICO model – that track consumer and business credit information.
Despite the market’s slow growth, there has been a rising demand for ride-hailing services in Mexico due to urbanization. The country has also witnessed a significant increase in electric vehicle sales, with US-based Tesla accounting for a major portion of these sales.
However, gig drivers often face challenges in affording the initial cost of owning EVs. Moove’s drive-to-own business model, coupled with Mexico’s strong credit scoring system, positions the company to provide 100% EVs to drivers, similar to its operations in the UK.
With Mexico as its newest market, Moove now serves ten countries in total, including Nigeria, South Africa, Uganda, Kenya, Egypt, Ghana, India, UK, US, and UAE. The company’s expansion into Mexico is part of its broader strategy to build a globally scalable business and achieve profitability by 2025.
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