Pay-per-minute car rental service attracts private, commercial and institutional investors in second round of funding
Udrive says it will use a $5 million cash injection from a Series B round of funding to accelerate its growth.
The UAE app-based pay-per-minute car rental service has previously raised $1 million during its last funding round and claims investors have since trebled their return.
This second round underpins Udrive’s unprecendented growth in the market, while proving the welcomed reception of the pay-as-you-drive concept. Udrive anticipates a round of Series C funding will take place in another 18-months, said the company in a statement.
According to the company, it will use the latest funding to execute its “ambitious expansion plans, such as increasing the number of premium cars in its fleet – including Mercedes, Audi and Mustang models – as well as expanding its service into Saudi Arabia and other strategically viable locations in the GCC.”
With 73,000 registered users and over 478,000 trips recorded in just two years, Udrive claims to be the market’s top performing pay-per-minute car rental service.
Udrive offers affordable rental car services across Dubai, Sharjah, Abu Dhabi and Ajman. Udrive cars can be booked and reserved quickly and easily via a dedicated app, offering the most convenient car rental options. It describes its diverse customer base as spanning, “the likes of UAE-based staff who travel frequently but don’t want to commit to purchasing a car, including airline staff and real estate agents, as well as families who don’t own multiple vehicles.”
“This is an exciting time for both Udrive and potential investors. When we launched just over two years ago, no one anticipated just how successful the concept would be, with many doubting how it would work in this region. We are incredibly proud to have proven those doubters wrong, while simultaneously delivering unprecedented return for our first round of investors,” said Hasib Khan, CEO and founder of Udrive.
The notion of car-sharing has increased in prominence in recent years, with services such as Udrive streamlining the process, providing optimum convenience for users, said the company statement: “In markets such as Dubai, a dense expat population also contributes to the popularity of car-sharing, with many reluctant to make a large investment in owning a car due to regular travel commitments or uncertainty in how long they’ll remain a resident. In addition to enhanced convenience, lower running costs and no need for personal investment, car-sharing has environmental and public benefits, including decreasing air pollution and reducing congestion on the roads.”
Khan added: “With over 1,300 people using the service in the UAE daily, and our plans to expand both our premium fleet and service across the GCC, we are confident investors will be attracted to the opportunity our Series B round of funding presents.”