Swvl, a Dubai-based provider of transformative mass transit and shared mobility solutions, revealed its plans to expand into Europe, Latin America (LATAM), and Asia-Pacific (APAC) via its acquisition of Shotl.
The business combination deal with Shotl, a mass transit platform that provides on-demand bus and van services across Europe, LATAM and APAC, aims to advance both corporation’s missions of optimising public transport systems and decreasing dependence on costly private options.
“Our two companies share the view that there is an urgent need to transform traditional public transportation to make it more accessible, convenient and sustainable,” said Mostafa Kandil, Swvl founder and CEO.
Shotl operates in 22 cities in 10 countries, including Brazil, Japan, and across the European Union, and will serve as Swvl’s European hub and platform for further significant expansion.
“Swvl has established itself as a market leader, with rapid growth and unparalleled tech-enabled offerings. Swvl is ideally situated for expansion into European markets and will immediately capitalise on our local partnerships and brand value,” said Gerard Martret, CEO and co-founder of Shotl.
With over 350,000 bookings made on the site so far, and its more than 10 percent market share in Europe, Shotl is addressing mobility issues posed by transportation voids in suburbs, cities and campuses with an on-demand platform.
The platform partners with governments, municipalities and companies to reach populations living or working in low-density areas largely underserved by existing mass transit and ride-sharing options.
“Shotl’s vision for the future of mobility, with an emphasis on electrification, the reduction of congestion and emissions, and affordability – is exactly what Swvl has already achieved in ten emerging market megacities and the reinvented model for public transit systems across the world,” added Kandil.
Mostafa Kandil, founder and CEO of Swvl.
Commenting further on the value of the partnership, Youssef Salem, Swvl CFO, said: “Shotl brings significant value to this ecosystem with its pan-European, LATAM and APAC presence, on-demand SaaS technology, B2G and OEM relationships and electrification and autonomous initiatives.
“With this partnership putting us significantly ahead of plan in these areas, we will continue to rapidly pursue strategic initiatives to further enhance shareholder value.”
The transaction is expected to close in the fourth quarter of 2021, subject to customary closing conditions.
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