Travel tech company Swvl is set to acquire Urbvan, a shared mobility platform that provides tech-enabled transportation services to customers in Mexico.
“Integrating mobility patterns with a shared vehicle aggregator platform, Swvl’s acquisition of Urbvan provides an excellent opportunity to accelerate Swvl’s mission to provide safer, faster, smarter and more affordable mass transport for everyone no matter where they live,” the company said in a news release Monday (July 11).
Terms of the deal — set to conclude in the third quarter of the year — were not divulged. Swvl said the acquisition gives it a stronger base for further growth in Latin America, increasing its footprint to more than 135 cities in 20-plus countries.
Founded in 2016, Urban operates in 18 Mexican cities and offers solutions for urban routes, intercity routes, private organizations and private on-demand needs.
Read more: Travel Tech Company Swvl Plans to Cut 32% of Staff
“Urbvan was founded on the same principles as Swvl: to address the inefficiencies found in traditional mass transit in many parts of the world,” Mostafa Kandil, Swvl’s founder and CEO, said in the news release.
He said that the company’s footprint in Mexico, suite of Transport-as-a-Service (TaaS) offerings, and relationships with local government reinforce Swvl’s mission to provide safer and more reliable mobility solutions “which are required for vulnerable people living in densely populated, challenging markets with vast geographies.”
See also: Travel Tech Company Swvl Plans to Cut 32% of Staff
The acquisition comes weeks after Swvl announced it was laying off 32% of its staff — a move that impacted about 427 workers — to help reach profitability.
“Such reductions will focus on roles which have been automated by investments in the Company’s engineering and product and support functions,” the company said on May 31. “Swvl plans to provide monetary, non-monetary, and job placement support to help with the transition of certain of its employees to new roles.”
It’s also the latest in a series of acquisitions this year for Swvl, following its purchases of smart bus platform Zeelo and B2B and TaaS mobility platform Volt Lines, both in April.
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