Kenyan ride-hailing company SWVL has announced the suspension of two core services in the Nairobi market: Swvl Daily for local bus routes and Swvl Travel for intercity transportation. The decision, effective May 30, 2022, for long-distance services and June 3, 2022, for urban routes, comes amid global economic pressures and internal restructuring efforts.
Since going public in 2021, SWVL has faced persistent operational challenges. The company initially lost its operating license in 2019 due to regulatory noncompliance with the National Transport and Safety Authority (NTSA), which was later reinstated. Post-pandemic recovery proved elusive, with revenue streams failing to rebound to pre-2020 levels.
In a statement, SWVL confirmed: "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 firm emphasized that its corporate-focused Swvl Business division will continue operating, targeting organizations and private clients.
Industry analysts note the company has cut 32% of its global workforce to prioritize profitability. This follows years of heavy investment in market expansion, including subsidized fares and fleet acquisition, which failed to establish a sustainable revenue model. Critics argue SWVL's shift from public transport disruption to corporate services reflects a strategic pivot away from its original mission.
Despite initial popularity, SWVL's business model faced inherent contradictions: balancing affordable pricing with operational costs. The company's eventual partnership with local matatu operators marked a departure from its disruptive vision, according to reports. While corporate services remain operational, their profitability and adoption rates remain unclear.