Swvl Inc. ("Swvl" or the "Company") (NASDAQ: SWVL), a global provider of transformative tech-enabled mass transit solutions, announced its entry into a strategic partnership with City Group Co. KSCP ("City Group"), a leading transport operator and warehousing services provider, through which City Group will utilize Swvl's Software as a Service ("SaaS") offerings in Kuwait. Under the partnership, Swvl and City Group will work to provide the optimal transportation platform for serving Kuwaiti residents, in an effort to simplify their daily lives. The platform will feature a wide range of services, including on-demand, door-to-door, ride hailing, ride sharing and network buses, as well as school and corporate solutions.
Swvl and City Group will initially focus on the development of an initial launch program titled "Citylink Shuttle." The program will include demand responsive transportation ("DRT") and other preferred services, with plans to scale services to 100 or more vehicles over the following six months. Following the successful completion of these phases, Swvl and City Group expect to initiate a comprehensive platform onboarding of City Group's remaining vehicles over a mutually agreed upon period.
Mostafa Kandil, Swvl Founder and CEO, said, "We are excited to partner with City Group to bring next generation of transportation solutions to Kuwait. We are deeply committed to the Kuwaiti transport sector and believe that collectively, we have the unique ability to transform the current offering and customer experience for the benefit of the country's daily passengers. In the process, we will make mobility more reliable, affordable, and convenient."
Mr. Kandil continued, "This partnership is another great example of how Swvl is leveraging strong and rapidly accelerating demand for its SaaS and B2G offerings, in turn facilitating expansion into new, attractive markets. We continue to demonstrate tremendous progress against our business plan goals. This SaaS partnership demonstrates the substantial synergies from our recent acquisitions of a controlling stake in Shotl and door2door, both leading SaaS platforms in Europe."
Youssef Salem, Swvl CFO, said, "We believe the launch of Citylink Shuttle in Kuwait, which is incremental to our business plan, provides Swvl with a compelling upside. It represents another major organic SaaS market expansion after Swvl's recent expansion into Brazil. The expansion of Swvl's SaaS business, its highest profitability segment, is expected to contribute to its plans to turn cash flow positive in 2023. Swvl's ability to pursue complimentary organic and inorganic expansions including the recent acquisition of Urbvan and healthy pipeline de-risk growth plans, increases capital efficiency and provides further upside."
Dr. Dheeraj Bhardwaj, Group CEO of City Group Co. said, "The core objective of Citylink Shuttle" is to provide smooth and safe transportation to match supply with demand efficiently in busy urban areas, in turn making those areas congestion free.
DRT is a form of shared transport for travelling individuals and groups. In this type of transport, vehicles alter their routes automatically, using advanced machine learning and AI technologies, based on transport demand without using fixed routes or timetabled journeys. These vehicles typically pick-up and drop-off passengers in specific stops according to the passengers' needs. The technology ensures that the pickup and drop-off locations are within walking distances from the passengers.
Citylink Shuttle will be a premium and an alternative service to personal vehicles or taxis. It aims to address several requirements by promoting optimized public transportation and majorly supplements the public transportation in areas with little to no access to it; and helps to organize transportation for everyone going to work, appointments, shopping, schools etc. This attractive service will translate into real savings for all, while offering better access to mobility and having a positive impact on the environment".
