Udrive, the UAE’s homegrown brand providing a pay-per-minute car rental service, has completed another strong funding round with investments of $5 million from Cultiv8 and Oman Holding International.
The funding comes as 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.
New funding was secured from Cultiv8, the government’s SME and start-up investment arm.
“Mobility tech is one of the key investment sectors our technology fund focuses on, and UDrive perfectly fits the fund’s guidelines and the fund manager’s ambitions. With the newly formed board and management team we are excited for Udrive’s continued triple digit growth across the MENAT region during 2022m” said Arif Alawi, CEO of Cultiv8.
Joining Cultiv8 in the funding round was Muscat-based Oman Holdings International, which owns Budget Oman.
“We can expect to see radical shifts in how cars will be used both globally and regionally,” said Eihab Saleh, Oman Holdings International’s director and CEO. “We are confident that their product roadmap is expected to significantly change the way cars are ‘consumed’ and utilised in the MENAT region.”
The investment will support Udrive for the upcoming expansion in the region and enhancements of its technology, a statement said.
“We are digitising 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,” said Udrive CEO and co-founder Nicholas Watson.
“We are proud to have well respected and diverse regional business leaders bringing unique experiences and growth potential to the business. Raising money was never about just the funds, but our ability to operate at scale and bring true change to old incumbent business models.”
Car sharing platforms have seen exponential growth worldwide as well as in the Middle East. The global car sharing market is forecast to reach $103 billion by 2025, with a CAGR of 17.2 percent. Additionally, KPMG reports almost 50 percent of car owners today will no longer want to own a vehicle by 2025.
Udrive’s cars can be driven per minute or per day, depending on the needs of the customer. Cars can also be picked up from any location available and can be returned in the same city at any parking location.
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