This archive report was first published on 10 January 2020.
On January 8, 2020, Little, a Safaricom-backed ride-hailing service, announced the temporary suspension of its shuttle services in Kenya. The move comes as its competitor, SWVL, continues to expand its operations across the country.
According to a tweet by Little, the company will be suspending its services for a while before returning with a 'bang.' The exact reason for the suspension remains unclear, but it is suspected that Little aims to tighten its adherence to local transport regulations, as it did in October 2019.
Little's CEO, Mr. Kamal Budhabhatti, had previously expressed optimism about solving Kenya's mass transport problems with the launch of Little Shuttle. However, the company soon discovered that its driver partners were using unlicensed vehicles, which fell under the highly regulated Matatu category.
SWVL, on the other hand, has been expanding its operations, adding new routes in Eldoret, Naivasha, Nakuru, Meru, and other areas. The company has also increased its routes from the city center, reaching nearly 60 routes from the CBD.
Little's suspension of its shuttle services marks a significant setback for the company, which had been gaining traction in the Kenyan market. As the competition between Little and SWVL continues to heat up, it remains to be seen how the two companies will navigate the complex regulatory landscape in Kenya.
