Swvl, an Egyptian bus-hailing startup has announced the suspension of its daily and city-to-city services in Kenya and Pakistan effecting from today.
SWVL Daly, City-City, and Business-Business are the three services provided by the shared mobility startup in the countries. While SWVL Daly was created for intra-city rides in the capital cities, City to City rides were created for long-distance travel, and Swvl Corporate for business journeys. The startup announced the indefinite suspension of Swvl Daily intra-city and Swvl Travel rides.
Announcing the suspension of its operations in the two countries, the firm in a statement said, “In light of the global economic downturn, we are pausing our Swvl Daily intra-city rides in Nairobi next Friday the 3rd of June, 2022. And Swvl Travel on Sunday the 30th of May, 2022.” the startup equally announced the shutting down of its operations in Pakistan. It stated that it would “pause” daily rides throughout Karachi, Lahore, Islamabad, and Faisalabad on Friday (June 3) “in light of the worldwide economic slump.”
Swvl Business, on the other hand, will continue to function and serve corporations, organizations, and private entities.
You will recall that we reported that 2 months after going public, SWVL is considering laying off 32% of its workforce in what the Dubai-based startup described as part of a portfolio optimization program that will enhance efficiency and reduce central costs to accelerate its path to profitability to turn cash flow positive in 2023.
The startup explained that the decision is part of its goal of achieving positive cash flow by next year.
Its commuting travels featured 300 runs to more than 55 destinations, providing commuters with easy access to the CBD, Upperhill, and Westlands. The mobility startup has also expanded its route network, allowing more passengers to organize excursions to their selected places. Utawala to CBD, Joska to Westlands, Ongata Rongai to Westlands, and Kiserian to CBD and Westlands are among these routes.
This decision will have a direct impact on about 100 employees of the firm in the affected nation, as well as over 500 bus owners who have partnered with the mobility startup.