Motoqaa, a Kenyan startup, has launched a digital platform that enables people to acquire vehicles on a lease-to-own basis.
Implemented in June, Motoqaa offers controlled services in the taxi-hailing industry for peer-to-peer lease-to-own contracts for vehicles.
“We source for drivers, collect payments and manage operations necessary to keep the vehicles and drivers on the road,” Mugambi Munyua, the startup’s founder, told Disrupt Africa.
The start-up, which operates a 28-car fleet, may be relatively new, but in April 2019, Munyua and co-founder Olivia Gachoya began working on the concept and have been in the taxi industry since 2016.
“We have advanced our operations by building in-house technology to implement pay-as-you-go models for vehicles using devices that can immobilise or mobilise the vehicle based on the status of payment,” Munyua said.
Motoqaa claims that promoting car ownership would make it more lucrative for drivers to participate in the ride-hailing economy, while also helping its financial partners make returns.
“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,” he said.
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 positions itself at the centre of this, sourcing, for drivers with a high likelihood of completing a deal, and then handling payment collection driven by technology. The startup, which has been self-funded to date, is planning a seed round in mid-2021 as it plans to pivot its business model.
“We would like to transition from a peer-to-peer model to a securitised 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,” said Munyua.
As we hit the midway point of the rollercoaster that is 2023, Nollywood Movies 2023 contin…