Egyptian ride-hailing service, Swvl has suspended the daily intracity rides in Kenya beginning June 3.
The company announced the new development citing harsh economic conditions.
Further, the company suspended Swvl Travel effective May 30 and announced that it would continue its SWVL business that caters to corporations, organisations, and private entities.
DON'T MISS: Stay informed with the latest news and interact with us on Instagram.
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,” Swvl said in a statement.
The company also announced plans to reduce its workforce by 32 percent in a number of countries as part of its plan to become profitable by 2023.
SWVL chief executive officer Mostafa Kandil said;
“Over the past few weeks, SWVL has been hit like others across the globe with changes to its financial realities. While change is often unexpected, we believe that any attempt to resist it instead of adapting to it will prove futile
“We know we have to make tough decisions to prioritise profitability over growth to ensure that Swvl thrives once we are on the other side of this.”
SWVL was co-founded in Egypt in 2017 by Mostafa Kandil and his friends, Ahmed Sabbah and Mahmoud Nouh.
JOIN US: Stay informed with the latest Kenyan news and join the conversation on Telegram.
Since then, the company has expanded its operations to 115 cities in 18 countries across Latin America, Europe, Africa, and Asia.
In February 2019, the company launched its operations in the Kenyan market.
SWVL served as the best alternative to public transport for those who cannot afford private transport.
It offers convenience with easy-to-book rides and hassle-free pick-up and drop-off points.
The company has several vehicles, including 11-seaters, 14-seater vans, and 22-seater shuttles plying the various routes.
It also introduced carpooling services to allow commuters to share rides and reduce individual fares.