This archive report was first published on 31 August 2019.
On August 31, 2019, SWVL, a new online-hailing matatu operator, secured Sh1.5 billion funding to finance an aggressive route expansion plan in Nairobi.
The start-up, founded by Egyptian operators, has set a target to grow its network to 500 routes served by 1,000 buses.
SWVL has already signed up 150 buses on 100 city routes and plans to expand its services to meet the demand of the planned route expansion.
“The investment will go into building the ecosystem, including supply and demand, bringing in drivers and creating awareness,” said SWVL co-founder and CEO, Mostafa Kandil.
The firm leases vehicles at a daily rate of $70 (Sh7,000) and $150 (Sh15,000) to ply the various routes and tops 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 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.
