Dubai based Udrive closes $5m funding round

Dubai based start-up Udrive, announced that it has closed a $5m funding round led by regional business leaders and three venture capitalists.

Founded in 2016, Udrive – the app-based pay-per-minute car rental service in UAE was the first in the region to fractionalise mobility by introducing the rent-by-the-minute idea, which allows customers to pay only for what they use. Unlike traditional rental services, with Udrive no humans are involved in the rental process which is managed via the app. Over the last four years, the company has empowered over a quarter of a million UAE citizens, residents and visitors to complete over 1.4 million trips, delivering estimated savings of approximately 25 per cent, compared to traditional mobility alternatives.

Earlier this year, Hasib Khan – founder of Udrive told Gulf Business – “Our service is unique compared to traditional rental because we have no humans involved in the rental process, your experience is completely managed via the app and you pay for only what you use, nothing more. You do not need to go to the rental office to get access to a car. The access to the car is your mobile. This is the biggest reason we adopted almost 200,000 customers in the UAE.”

Read: The SME Story: Hasib Khan, founder and CEO of Udrive

Currently, the company is accelerating its growth — by doubling its fleet size over the next three months and targeting 500 per cent revenue growth in the next 12 months — as it looks to continue disrupting the transportation market in the GCC.

Hasib Khan believes the company’s value proposition is more relevant than ever before, as the UAE adapts to hybrid work patterns and prepares for an inflow of tourists for EXPO 2020. “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 recognise the value of Udrive’s service.”

In addition to their cash infusion, the new group of investors — which includes Cherif Sleiman of Infoblox and Asif Keshodia, former CFO of Souq.com, subsequently acquired by Amazon — collectively bring decades of experience in successfully operating and expanding organisations, both start-ups and conglomerates, as well as access to a wider investor community.

The company intends to utilise the funding to further enhance the data analytics capabilities of its platform, with a focus on elevating customer 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.