Drivers under Moove’s vehicle financing scheme aren’t moving today.
They’ve parked their Suzuki S-Presso cars and taken to the streets in Maryland, Lagos, to protest a 100% hike in their weekly payments for the vehicles.
If you didn’t know: Moove is a Nigerian startup that finances vehicles for ride-hailing companies, mostly under UberGo. The company planned to raise $300 million in June, a move that could push its valuation to $1 billion. When drivers get cars through Moove’s hire-purchase plan, they pay weekly remittances until they own the vehicles. It usually takes four years. These weekly remittances have now doubled from ₦56,400 ($75) to ₦112,200 ($38).
The numbers sting more when peeled back. Out of the $75 weekly remittance, only 33% ($27) goes to loan repayments. The rest is padded with add-ons split across a mix of maintenance, repairs, insurance, and a steep handling fee ($28.5).
The drivers are now protesting this increase and also requesting that Uber cut its commission to 20% or lower.
Zoom out: Moove attempted to raise rates around this time last year, citing inflation and low interest rates. Back then, it was just talk. It has become a reality, hence the standoff. It is either Moove eases up on the hike or drivers learn to live with it.
