Egyptian Swvl Reaches An Agreement to Acquire UK-based Mobility Firm, Zeelo, for $100m

The Egyptian tech ecosystem is blossoming in many key areas where fintech has been at the helm. Logistics, last mile transportation, B2B etc. Some of the tech firms have grown big enough not only to make groundbreaking investments in other companies but also to acquire some of them – even outside the African continent.

Swvl, an Egyptian startup that provides shared bus transportation services for intercity and intracity trips, which recently expanded into Turkey with the acquisition of Volt Lines, a B2B transportation-as-a-service operator, has made a giant leap into the UK.

Swvl announced that it has entered an agreement to acquire UK-based mobility startup, Zeelo for $100 million.

Zeelo is the UK’s largest smart bus platform and technology scale-up, measured by bookings. Headquartered in London with over 160 employees, an R&D team in Spain and live operations in the UK, South Africa and the US, it was founded in 2016 by Sam Ryan, Barney Williams and Dani Ruiz. Zeelo is a smart bus platform for organizations, serving large businesses and independent schools and moving nearly 150,000 riders each month across the world.

Zeelo’s services model includes a driving accreditation school, contracted fleets, and proprietary technology including a SaaS platform and multiple customer apps, which leverage smart GPS route optimization and ride-sharing software.

Mostafa Kandil, Swvl Founder and CEO, said Swvl was founded on the belief that accessible transportation is essential to unlocking economic opportunity. This has been demonstrated by the company’s expansion into new markets around the world.

“Swvl and Zeelo share a vision and mission to provide reliable transportation that gets riders where they need to go in an affordable, safe, and environmentally-friendly manner. With an impressive suite of turnkey TaaS and SaaS solutions and an established footprint in the United Kingdom, South Africa, and the United States, Zeelo rapidly advances our leading market position as a provider of technology-enabled mass transit solutions on a global scale,” he said.

The acquisition builds on Swvl’s recent acquisitions of controlling stakes in Shotl and Viapool, and the pending acquisition of door2door. Swvl’s distinct shared-mobility transport product has made it attractive around the world, propelling increasing adoption in distant markets with peculiar transport systems like the US and the UK.

Zeelo Founder and CEO, Sam Ryan, described the Swvl transport system as revolutionary, adding that it has the capacity to change the dependency on cars and taxis.

“Swvl is revolutionizing the mass transit industry and we are thrilled to join forces with them on this next phase of Zeelo’s journey to firmly establish smart bus transport as the best-in-class shared mobility solution that takes account of all income levels and the needs of ordinary, every-day travelers. Bus transport done well with tech can take us beyond our dependency on cars and taxis which are not suitable for commutes from non-urban areas.

“We look forward to bringing Swvl insights from Zeelo’s strategic pivot during the global pandemic and we’ve been impressed by Swvl’s fast growth in challenging markets. We are excited to leverage their global experience as we embark on a shared journey to develop safe, affordable, and low emission mass transportation options, and expand economic opportunity for the people who need it most through our mobility solution. Especially shift workers, professionals and students living in transport-poor areas in the developed markets,” he said.

Bus-sharing transport services are rapidly growing in Africa as it is peculiar to the continent’s socio-economic culture. While Swvl leads the pack, other startups like the Nigerian-based Treepz and Transtura, are breaking grounds with their growth records. With the growing interest in the bus-sharing transport product outside Africa, these startups will have larger markets to expand.