Udrive, the UAE’s first app-based pay-per-minute car rental service has announced that it has secured a $5 million investment as apart of the Series B funding round. The investment will come from a group of financial institutions and private investors.
The UAE based startup was founded in 2017 and has gone through multiple rounds of funding, raising $1 million in previous rounds. Investors in the first round has got a 3 times return on their investment which has got even more investors interested in the idea.
The Series B funding is more focused on the growth of the pay-as-you-drive concept in the UAE, which has already been welcomed by the the road users and has rapidly become popular. The investment will also be used to increase the number of premium cars – including Mercedes, Audi and Mustang models and also to expand the service to other GCC countries, such as Saudi Arabia, Bahrain and Oman.
At the moment, Udrive has got 73000 registered users in the UAE and has recorded over 478,000 trips in just two years. The customer base includes, UAE residents, airline staff, regular visitors who are doing business in the UAE, university students, as well as families looking for an extra car from time to time.
It is the top performing pay-per-minute car rental service and is in head to head competition with its rival eKar, that works on the similar concept.
Hasib Khan, CEO and founder of Udrive, said: “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.”