[Kenya] Shared mobility provider Swvl pauses daily operations in Nairobi
Swvl has announced that it is pausing its daily and city to city rides in Kenya. The mass transit and shared mobility provider has been offering three services in the country, this includes SWVL Daly, City-City and Business-Business.
SWVL Daly was tailored for intra-city rides in Nairobi, City to City rides on the other hand were tailored for long-distance travel while Swvl Business targeted business rides. Swvl now says it’s suspending Swvl Daily intra-city and Swvl Travel rides indefinitely.
“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 company says in a statement.
Swvl Business will however continue to operate and cater to corporations, organisations, and private entities.
On Tuesday last week, the company announced that is cutting off its workforce by a third, a move that is set to affect 400 people across the different markets the firm operates. The move according to Swvl is part of its efforts to turn cash flow positive by next year.
”Effective today, May 30, 2022, we are optimizing our operations in some of our markets while reducing our workforce. The reduction follows an extensive evaluation of team redundancy and how this complements our strategy. ” a letter sent to Swvl employees by CEO Mostafa Kandil on May 30 reads.
”We believe that Swvl has reached such a level of success only because of the team, and we are also sure that Swvl will continue to get stronger.” the letter further reads.
On the daily commuter rides, Swvl covered 300 routes to over 55 destinations which provide commuters with direct rides to the CBD, Upperhill and Westlands. Swvl also increased the number of routes available to enable more passengers to book trips to their desired destinations. These routes include Utawala to CBD, Joska to Westlands, Ongata Rongai to Westlands and, Kiserian to CBD and Westlands.
Pausing its operations in Kenya means some 100 people it directly employs in the country are going to be affected. Swvl works with over 500 bus owners that have partnered with the company.