This archive report was first published on 30 August 2019.
On August 30, 2019, SWVL, a new online matatu operator, secured Sh1.5 billion funding to finance its aggressive route expansion plan in Nairobi.
The start-up, founded by Egyptian operators, has already operationalized on multiple Nairobi routes and aims to grow its network to 500 routes served by 1,000 buses.
SWVL has set a target to expand its network to 500 routes served by 1,000 buses, with the current fleet consisting of 150 buses on 100 city routes.
According to SWVL co-founder and CEO, Mostafa Kandil, the investment will go into building the ecosystem, including supply and demand, bringing in drivers, and creating awareness.
The firm, which started in Cairo, is seeking to take advantage of Nairobi's chaotic and largely unreliable public transport system.
SWVL leases vehicles at a daily rate of $70 (Sh7,000) and $150 (Sh15,000) to ply the various routes, topping up the daily collection if the earnings for the day are less than the daily leasing amount.
The app-based service allows users to book trips using their mobile devices, which notifies them of the nearest pick-up point, price, and time by the bus.
SWVL general manager for Kenya, Shivachi Muleji, stated that the firm is in negotiations with local Ford dealers and a financial institution to provide vehicles at 20 percent cheaper than the market rate as well as financing options for drivers.
