South Africa’s mobility startup, LULA, has announced the acquisition of the operations of UK-based Zeelo in a move that will see it scale up significantly.
LULA, which was founded in 2016 by the duo of Xabiso Nodada and Velani Mboweni, is a tech-enabled ride-sharing solution that enables people to be collected from their homes and taken to work and back again safely and reliably.
Zeelo, on the other hand, is a smart bus platform for organisations with similar operations to LULA in that it provides flexible turn-key and plug-in transportation programs for commuting and school runs.
According to Nodada, the deal will see Zeelo’s South African operations transition to LULA’s solution.
“Over the last five years, LULA has consistently maintained a year-on-year growth of between 2.5x and 4x, despite interruptions caused by the COVID-19 pandemic and a global recession,” he said in a statement
“The acquisition will mean an increase in customers, vehicles and operating partners, and staff to strengthen and scale LULA’s business in South Africa, as well as into other African markets.
“Significantly, the acquisition of Zeelo‘s operations in South Africa means that LULA becomes a profitable business, with enough breathing room to scale smart, rather than scale fast,” Nodada added.
Also commenting on the deal,
Sam Ryan, founder and CEO of Zeelo said with the conclusion of the deal, the company is now directing its focus toward further expansion in the UK, Ireland, and North America.
“It has been a remarkable journey and we are grateful to our team, clients and suppliers for giving us the opportunity to serve them.
“Whilst the decision to exit the region was a challenging one, we are excited to support the transition of our customers and suppliers to the LULA platform and look forward to witnessing LULA’s future successes in tackling the transportation challenges in South Africa.“