Swvl has been providing convenience to users in Pakistan. Undoubtedly, they provide excellent service and great customer support at affordable prices. It is a Dubai-based business that entered the Pakistani mass transport market in 2019. However, amidst the global economic recession, its intra-city services in Karachi, Lahore, Islamabad, and Faisalabad will be suspended from today. It’s sad news for all Swvl users in Pakistan.
The announcement comes just days after the company announced a 32% reduction in the global workforce as part of a “portfolio optimization program to enhance efficiency and reduce central costs to accelerate its path to profitability and turn cash flow positive in 2023.”
Swvl Halts its Intra city transport service in Pakistan
Though, on the other side, Swvl Travel, which specializes in city-to-city transportation, and Swvl Business, which specializes in business-to-business rides, will be operational as usual.
Furthermore, the company plans to provide monetary, non-monetary, and job placement support to help with the transition of certain employees to their new roles. The company would currently focus on the B2C business in Egypt and Pakistan, which are “currently the company’s biggest B2C revenue generation countries.”
Swvl began trading on the NASDAQ stock exchange in the United States back in March. It was estimated to be worth $1.5 billion at the time, and it was hailed as the first Middle Eastern corporation to establish itself from East to West.
However, unfortunately. things are changing now. In a statement, the CEO of Swvl, Mostafa Kandil said,
Businesses around the world are suffering from higher costs and overall uncertainty. Declining stock markets have led to a global crisis with unforeseen consequences. Swvl has been hit like others across the globe with changes to its financial realities. While change is often unexpected, we believe that any attempt to resist it instead of adapting to it will prove futile.