Drivers Are Protesting Moove’s Financial Policies In Nigeria
The drivers of Moove, a startup vested in building Africa’s largest full-service mobility fintech, are protesting against the mistreatments they have experienced working with the vehicle-financing company.
In Lagos, Nigeria’s commercial hub, these demonstrations are ongoing majorly because of what it costs to rent and drive with the Moove assembly line.
The cost was formerly NGN 8 M (~USD 17K) to acquire higher-purchase vehicles via the platform but the company was reported to have company revised it to around NGN 12 M (~USD 26 K). Nonetheless, Moove maintains that there have been no changes to the pricing.
Typically, Moove gives its drivers either a Suzuki S-Presso or an Alto, which ordinarily retail at NGN 7.6 M (~USD 16 K) and NGN 9.9 M (~USD 21 K) respectively.
Most of these taxis are used for rides on Uber Go, which on its part requires drivers to pay NGN 9.4 K (~USD 20) daily. The e-hailing platform also requires them to complete 12 rides within 6 days every week.
According to reports, some of the vehicles rented from Moove are fairly used yet drivers are mandated to repay sums that trump the costs of buying them brand new.
Drivers who spoke to the press lamented about long working hours as a result of the difficulty in meeting up with payments on both Moove and UberGo while making a decent living. But, per information WeeTracker has received from Moove, that might not be entirely true.
“KPIs for Moove’s drivers in Lagos are capped at 10 hours per day in line with the 10-hour daily cap for commercial drivers in Lagos State as per transport regulations,” its communications team submitted.
“With Moove, there is no upfront deposit and our 48-months drive-to-own product is priced at NGN 7.8 M (~USD 17 K) inclusive of interest. Furthermore, we also provide a number of other benefits that are otherwise not within reach of drivers; this includes auto-insurance, health insurance, life insurance and a service maintenance and repairs package. Taking these benefits into account, the total cost of ownership to a Moove customer is NGN 11.8 M (~USD 25 K) over the 4 years,” the statement adds
The startup is one of Africa’s most funded, both in amount and frequency. Moove’s last funding round was disclosed in December last year when it raised USD 30 M in debt. Before then, it had raised USD 20 M in July, 105 M in March, and USD 10 M in debt in February. Its Series A was closed in 2021 at USD 23 M.
The protests against the repayment clauses of Moove are happening at a time when Nigeria is battling on different fronts. Rising inflation, currency devaluation and scarcity, fuel scarcity, and insecurity presently plague Africa’s largest economy, dragging the country into turmoil.
Moove points to the same dire economics but has requested a meeting with representative drivers.
“All mobility entrepreneurs across Nigeria, including our very own Moove customers who earn their living operating vehicles that we have empowered them with, are even more adversely affected due to the number of working hours spent queuing for fuel rather than being on the road and earning money”, the official statement explained.
The company says it remains dedicated to formalizing Africa’s mobility sector by enabling drivers with means to sustainable livelihoods.
In April 2021, Moove struck a partnership with Total Nigeria in a bid to provide drivers with fleet management systems, exclusive discounts, and product rebates.