Enterprise e-ride platform LULA acquires Zeelo’s South African operations

news:

• LULA, a ride-hailing platform for corporate commuters, has acquired the South African arm of US-born employee bus-sharing startup Zeelo. Tech Cabal Reports.
• Neither company has yet to disclose transaction details about the all-cash transaction.
• LULA plans to further expand across South Africa by leveraging Zeelo's extensive market network with over 18,000 riders. Prior to the acquisition, Zeelo claimed to achieve over 2 million rides per year.

Zeelo, which entered the South African market in 2019 and has raised a total of $33.6 million by August 2023, is planning to leave the country to focus on the US, UK and Irish markets.

Commenting on the mobility company's withdrawal, Zeelo founder and CEO Sam Ryan said the decision to withdraw from the region was a difficult one.

“We are pleased to support our customers and suppliers in their transition to the LULA platform,” he added.

According to the provincial report of the 2022 National Household Travel Survey released by Statistics South Africa, transport is the largest work-related expense for South Africans.

A recent National Household Travel Survey (NHTS) revealed that South African workers spend an average of 2,180 rand ($121) on travel using their own car and 960 rand ($53) on travel using a taxi.

Uber for Business, MoveInSynch, and LULA are currently platforms that allow employers to empower their employees and reduce employee costs.

Following the acquisition of Zeelo, LULA now has over 1,000 registered drivers and shuttle vehicle operators operating across five South African cities and is looking to expand its market share in this sector.

LULA was founded in 2018 by Velani Mboweni (CEO) and Xabiso Nodada (Head of Product) and claims to have completed up to 700,000 rides for over 380 businesses.

LULA does not own the vehicles it uses. Instead, similar to Bolt and Uber, the e-hailing platform partners with private drivers and shuttle fleet operators to provide ride-hailing services in exchange for a commission of 20% to 40%.

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Mboweni explains that revenues from the Zeelo business will make LULA cash flow positive and enable the company to expand successfully.