Motoqaa, a Kenyan startup that emerged in June 2020 to provide services for peer-to-peer, lease-to-own contracts for cars in the cab-hailing line, has launched an online lease-to-own car marketplace that assists drivers to obtain cars.
Despite just taking off mid-year 2020, the startup brand is already a fleet of 28 cars, and the startup’s founder Mugambi Munyua and co-founder Olivia Gachoya began working on the plan in April 2019 and have been participating in the cab business since 2016.
Mugambi Munyua had this to say: “We source for drivers, collect payments and manage operations necessary to keep the vehicles and drivers on the road
We have advanced our operations by building in-house technology to implement pay-as-you-go models for vehicles using devices that can immobilize or mobilize the vehicle based on the status of the payment.”
Motoqaa’s model is built around supporting car ownership, to encourage participation in the cab-hailing business line more profitable for drivers, while also assisting its finance partners earn returns in the process.
Speaking on this, Munyua said: “Drivers would rather have the option to own the vehicles they use in the business. They are however locked out of the formal credit system. Partners are looking to build wealth or earn an extra income.
They seek a return of capital and additional profit. Both the drivers and partners are seeking to acquire wealth in different forms. Drivers are looking to acquire an asset and partners are looking at return on investment.”
Motoqaa has taken it upon itself the sourcing drivers with a high probability of seeing through a contract, and then managing a collection of payment, using technology.
The brand has been self-funded all along but is targeting a seed round by the middle of 2021 as it intends to further pivot its business model.
“We would like to transition from a peer-to-peer model to a securitized asset financing model.
This will allow us to scale faster and be more impactful to the community of drivers.
The move will also see us earn revenue from marking up the vehicles ourselves,” Munyua said.
Featured Image: Disrupt-africa
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