Swvl CEO Mostafa Kandil has publicly denied the claim that the company has shut down its consumer business. MENAbytes reported in a LinkedIn post that “Dubai-based mobility startup Swvl has quietly shut down its consumer business to focus entirely on enterprise customers”.
Kandil responded to MENAbytes’ LinkedIn post, pushing back the assertion. “We have not shut down consumer business,” he stated.
Swvl, a Dubai-based mobility firm, has recently changed its business strategy significantly. On Tuesday, the company unveiled a new logo and redesigned its former website.
The new site describes Swvl as a “leading provider of technology-driven mobility solutions for enterprises and governments,” signaling a complete focus on business-to-business (B2B) services. Notably, the company’s former consumer offerings, Daily and Travel, have been removed from the platform.
Swvl was founded in Cairo in 2017 and began as an app that provides transportation services directly to end users, allowing them to book a seat in a bus on a certain route. As the company expanded, it began to offer enterprise services, such as SaaS and MaaS to businesses, governments, and schools.
Despite this, Swvl has had some financial challenges in recent years, including a disappointing IPO, which has caused the company to gradually shift from B2C to B2B offerings. Despite maintaining consumer services in Egypt until 2023, it has transitioned entirely to B2B and has discontinued consumer services. Thus, in 2023, the consumer business represented 27% of total sales, or $23 million.
Similarly, Swvl stated last month that it would establish its regional headquarters in Riyadh, Saudi Arabia, as part of Vision 2030 and the Regional Headquarters Program. The scheme offers significant perks such as a 30-year corporation tax exemption, a 10-year Saudization exemption, and visa help for staff. Swvl’s strategic adjustment is expected to increase its ability to secure government contracts in the Kingdom, where it has been active for four years.
Swvl has already profited from its focus on Saudi Arabia, acquiring new contracts in the region totaling an additional $2.6 million in annual contract value. This accounts for around 10% of Swvl’s total revenue estimate for 2023.
