Dubai: Udrive, the app-based pay-per-minute car rental service, raised $5 million in its latest funding round. The car rental service plans doubling its fleet size over the next three months and targeting 500 per cent revenue growth in the next 12 months.
“As people return to work, we’re once again seeing an increased need for mobility,” said Udrive’s Founder, Hasib Khan. “Whether for health and safety reasons, or the cost benefits, these individuals fully recognise the value of Udrive’s service. 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.”
Founded in 2016, Udrive was first to fractionalise mobility by introducing the rent-by-the-minute concept to the region — giving consumers the benefit of paying for what they use. The company scaled quickly by focusing on the large segment of the market. Over the last four years, the company has seen over a quarter of a million UAE citizens, residents and visitors complete over 1.4 million trips, delivering estimated savings of approximately 25 per cent, compared to traditional mobility alternatives.
The company intends to utilise the funding to further enhance the data analytics capabilities of its platform. This includes providing customers a greater degree of transparency into their trips and consequently a better understanding of pricing models and potentially lower fees. Udrive is also expanding across the Middle East, North Africa, and Turkey (MENAT) over the next six months as it looks to capitalise on the demand for fractionalised mobility in these markets.