Swvl, a global transport startup based in Dubai, has agreed to buy Shotl, a Barcelona-based Uber-like service for bus and van operators that serves municipalities, corporations, and educational institutions.
Swvl, founded in Egypt in 2017, also offers a digital platform that allows customers to book and pay for bus travel on fixed routes. The transaction is the most recent in the global transport technology sector, as companies seek to gain power or raise funds through public offerings. The financial terms of the deal are not disclosed yet.
Swvl agreed to a $1.5 billion merger deal with Queen’s Gambit Growth Capital last month, setting the stage for a Nasdaq offering in the fourth quarter of this year.
The mobility platform currently operates in ten cities across six countries and makes over 3 million trips every month, with the aim of expanding it to 2 million per day by 2025.
According to the source, Shotl will serve as Swvl’s European hub and more than double the company’s regional footprint. The company operates in 22 locations in ten countries, including Brazil and Japan. Further, it serves people who live in isolated areas with only a few transport options.
With this deal, Swvl will also have access to autonomous driving projects as a result of Shotl’s participation in a European Commission-led project to illustrate the impact of self-driving minibusses on future public transportation networks.
Earlier this month, Swvl’s chief financial officer, Mr. Youssef Salem has announced that the company aims to make its first profit in 2024. Swvl aims to grow into other operations such as logistics, advertising, and financial services beginning in 2023, with a network of 5,000 buses, 3,000 of which are in Egypt.