Dubai-based startup Udrive has closed a $5 million funding round led by regional investors and venture capitalists in order to accelerate its expansion over the next 12 months.
The car-sharing app said in a statement that it plans to double its fleet size in the next three months and targets 500 percent revenue growth in the coming 12 months.
According to the statement, the funds will be used to improve the data analytics capabilities of the company’s platform, with a focus on enhancing user experiences. This includes providing customers a greater degree of transparency into their trips and consequently a better understanding of pricing models and potentially lower fees.
Over the next six months, Udrive will expand across the Middle East, North Africa, and Turkey (MENAT) to capitalize on the demand for fractionalized mobility in these markets.
“As people return to work, we’re once again seeing an increased need for mobility. Whether for health and safety reasons, or the cost benefits, these individuals fully recognize the value of Udrive’s service. Furthermore, the ability to avoid large capital costs associated with owning a vehicle while still having the convenience and the ability to enjoy the driving experience is especially attractive to expats, which make up a large portion of the population in the UAE and broader GCC region. With EXPO 2020 around the corner, this mentality and temporary use of assets create additional opportunities in an already large total addressable market for Udrive.”
Mr. Nicholas Watson, Managing Director at Udrive said, “Our technology stack and SaaS platform have allowed us to scale our fleet of cars, customers, and trip counts five times faster than traditional market players. With our new strategic investors, we now have unfettered access to invaluable experience in regional market dynamics, FinTech, and mobility — a perfect combination for where we are heading.”
Founded in 2016, Udrive is the first and number one on-demand car-sharing operator in the Middle East. The company scaled quickly by focusing on the large segment (60 percent) of the market, made up of a digitally-savvy driving age population that neither wants to own a vehicle outright nor wants to lock up their income in a depreciating asset.