As the most populous country in Africa, with the largest economy, Nigeria has massive potential to be an economic powerhouse, not only on the continent but globally as well.

However, recent years have seen the Nigerian economy struggle to rise above the impacts of challenges that have mainly emanated from outside its borders, including the economically devastating Covid-19 pandemic and, more recently, the volatile global economic environment, with steadily rising inflation and interest rates.

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Mobility has a vital role to play in addressing many of these challenges and enabling Nigeria and its people to gain sustainable forward economic momentum.

In addition to the urgent need for more reliable and affordable goods transportation solutions for the fast-growing small- and micro-business sector, people need safe and reliable transport to access the earning opportunities that do become available, not to mention education and healthcare.

The recent stellar growth in the popularity of, and demand for, ride-hailing in many major centres across Nigeria offers compelling evidence of the vital role that reliable and affordable transport offerings play in the sustainable development of the country.

Uber has been at the forefront of this steady e-hailing growth trend since we first entered Nigeria in 2014. While the past eight years have certainly not been without their speed bumps, the steady growth in demand for our services, coupled with the recent entry into the market of several other e-hailing providers, illustrates the significant potential for ride-hailing technology to transform the Nigerian transport landscape for the better – and the economic growth prospects will be bolstered in the process.

A great example of this positive knock-on effect of accessible mobility is the recently launched Uber Go, our most affordable offering to date. It has enabled us to take our value-adding services to all segments of the market, including those that are under-served.

An entirely new rider market is opening for us. Nigerians who previously shied away from ride sharing platforms due to negative cost perceptions are now taking full advantage of the Uber Go service to enjoy affordable, convenient, and stress-free transportation that allows them to access the economic opportunities they need more easily.

Our Uber Connect product offers users access to delivery service at the tap of a button and this has been equally well received, particularly by SMMEs who appreciate having an on-demand small parcel delivery solution that doesn’t force them to significantly inflate their prices due to high courier costs, thereby ensuring that their product offerings are more accessible to larger segments of the population, including price-sensitive consumers.

The valuable role that Uber Connect is playing in underpinning the growth of small businesses in Nigeria is demonstrated by the 85% average quarterly uptake of the service since its inception.

Of course, it’s not just the ‘end-users’ of Uber’s services in Nigeria that benefit; the growing demand for our unique and trusted brand of e-hailing and delivery services is creating an increasing number of income opportunities for drivers.

To support the uptake of these opportunities, we are working to address what has been one of the biggest barriers to entry for new drivers, namely the high cost of vehicle ownership.

Our partnership with Moove Africa gives prospective drivers access to affordable compact vehicles via flexible rental and drive-to-own options. The low weekly repayments on these zero-deposit vehicle access schemes not only enable drivers to earn a steady income but also cover the costs of maintenance and insurance, both of which are cornerstones of a sustainable career as a driver who uses the Uber platform.

As Uber, and the other e-hailing platforms entering African markets, continue to address some of the key mobility and economic earning challenges that still exist in Nigeria in the ways outlined above, we are seeing tangible evidence of the power that our offering has to create a virtuous circle of opportunity that, in turn, leads to general economic upliftment.

And given that Uber currently only operates in 10 of the 36 states in Nigeria, we see immense potential to expand the positive impact of our model and ultimately act as an economic growth catalyst throughout the country in the coming years.

Through this MoU, Moove, which provides revenue-based financing to mobility entrepreneurs, aims to advance financial inclusion and job creation as well as upskilling opportunities in the sector.

Signed at the eighth Tokyo International Conference on African Development [TICAD] conference, the tri-party MoU is an important milestone for African fintech and underscores the opportunity to leverage technology to improve the livelihoods of millions of people in emerging markets. 

Moove’s alternative credit scoring technology will enable access to vehicle financing to mobility entrepreneurs, backed by the strength of MUFG’s global network capabilities and Suzuki’s expertise in manufacturing durable, high performance and fuel efficient vehicles. The MoU creates a framework for the parties to work closely together.

Launched in Lagos, Nigeria in 2020, Moove is a mission-led company committed to empowering mobility entrepreneurs to be productive and successful through providing access to vehicle financing and other financial services. 

The mobility fintech startup has since scaled to seven markets across sub-Saharan Africa and six markets in MENA, Asia and Europe, and its customers have completed over 7 million trips in Moove-financed vehicles. 

Moove is also working to solve other challenges in mobility, including providing access to finance for more female customers as well as improving road safety and training support for mobility entrepreneurs.