Udrive get US$ 5m investment for regional expansion
Udrive, a pay-per-minute car rental service, received strategic investments of US$5 million from Cultiv8, the government’s SME and startup investment arm, and Oman Holding International. The investment will support the company’s upcoming expansion in the region and enhancements of its technology. Additional emphasis will be given to streamlining the customer experience, an example of which has been the automatic parking payment system, where the car determines where it is parked and automatically pays the relevant meter charges.
Udrive recorded strong growth in 2021, clocking two million trips to date, making it one of the largest rental booking platforms by transactions per car in the region.
Udrive CEO and co-founder Nicholas Watson, said, “We are digitizing mobility making it easily accessible to everyone. The recent funding secured will help us invest in new technologies as well as grow our offerings into the region this year. We want to provide this service to everyone who can drive, and the reality is customer demand is shifting fast from buying & owning to on-demand and subscription.”
Car sharing platforms have seen exponential growth worldwide as well as in the Middle East. By 2026, the number of users in the car sharing segment is expected to reach 60.7m and, according to a report by Valuates, the global car sharing market will reach 103 billion USD by 2025, with a CAGR of 17.2 percent during the forecast period. Additionally, KPMG reports almost 50 percent of car owners today will no longer want to own a vehicle by 2025 and a separate report by ResearchAndMarkets claim 4 out of every 10 car journeys will be via car share.
Udrive addresses the short term on-demand rentals by adding additional services including free fuel, parking, and comprehensive insurance for all its customers. Its cars can be driven per minute or per day, depending on the needs of the customer.