African mobility fintech, Moove has entered into a partnership with Lori system, an e-logistics firm to facilitate the accessibility and affordability of vehicle financing within Africa’s trucking and logistics industry and further drive the penetration of the truck financing which is currently below 1%.
The partnership is expected to bring about increase in capacity of transporters to match demand across East and West Africa through combining Moove’s unique revenue-based financing model and also credit-scoring technology with Lori Systems’ data-driven logistics marketplace.
The launch which will initially take off in Kenya and followed by a rollout in Nigeria will enable loans allocated to a pool of highly rated and vetted transporters on Lori Systems’ platform to expand their fleet through a drive-to-own program for all truck drivers. In addition, customers will be able to pay back the loans over 48 or 60 months using a percentage of their weekly revenue with up to 100% of the purchase price underwritten by Moove.
What they are saying
Commenting on the partnership, Ladi Delano, Co-Founder and CEO of Moove who expressed excitement about the deal noted that the deal will open opportunities to truck drivers and also contribute to the overall logistic industry in Africa.
Ladi Delano, Co-Founder and CEO of Moove said: “We knew from the get-go that our mission to democratise vehicle ownership would take us beyond cars. We’re thrilled to be partnering with Lori Systems to empower truck drivers in Africa, and are excited about the positive impact our revenue-based financing solutions will have on their lives. Lori’s efforts to leverage data-driven and tech-enabled solutions have recorded significant progress in driving further efficiency in the African logistics industry; this has been impressive and very much aligns with our mission.”
Uche Ogboi, CEO of Lori Systems also noted that the logistics industry in Africa has for so long been underserved by financial providers. He, therefore, said that the partnership with Moove to unlock access to financing will provide an even more efficient service, match the growing customer demand in the market, whilst lowering the costs for goods.
“Lori’s mission is to drive down the cost of goods in frontier markets. We’ve grown a marketplace that brings transparency and data to the forefront of the continent’s critical haulage industry. The partnership with Moove enables us to design innovative and flexible financing options, using data we have captured over the years, to allow transporters fund new trucks and increasingly grow their fleet and businesses,” he said.