Swvl expects more people to use its buses

Yusuf Salem, Swvl’s chief financial officer, told Reuters that higher oil prices helped the Dubai-based firm attract more customers; In big markets like Egypt and Pakistan, people leave their cars and board buses.
But the US Nasdaq-listed company has cut costs significantly and halted some expansion plans as it looks to turn a profit next year to appease investors in the face of inflation and high interest rates.
“For us, there are two important consequences of high oil prices and inflation,” Salem said in an interview. One is very positive and the other is very challenging from a capital market perspective.
He added that bookings were up 40% year-on-year in the first quarter of the year; Customers park their cars and use Swvl buses.
But he said the company cut its staff by a third in May while expanding its branches in Jordan, Kenya and Argentina. The company has raised its service prices by 10-20% in the last four months as commodity prices have risen.
Swvl operates an app that connects people with private buses, similar to the Uber taxi app, which offers more flexible schedules and routes than public transit, serving individuals, businesses and schools.
The company’s shares were valued at $1.2 billion on the stock market in April after merging with special purpose firm Queen’s Competitor Growth Capital.
But the stock price lost more than 75% of its value.
“As the cost of borrowing increases, capital available for high-growth stocks becomes more scarce and more expensive,” Salem said.
“We should close any unprofitable market by 2023 and restart it in 2023 instead of using additional capital from the market,” he added.
(Reuters)

See also  UAE University welcomes new students for the 2021-2022 academic year

  • Bill Dittman

    "Freelance alcohol fan. Coffee maven. Musicaholic. Food junkie. Extreme web expert. Communicator."

    Related Posts

    Best HydraFacial Clinic in Dubai: The Magic of Radiant Skin

    Many of us desire glowing, refreshed skin that enhances our natural beauty. If you’re struggling with concerns like fine lines, wrinkles, and clogged pores, HydraFacial could be the solution you’ve…

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    As a popular business-friendly destination, the United Arab Emirates has had an impressive economic growth rate which has attracted more job seekers as well as business investors to the region.…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    How to Find the Best Online Casinos in the UAE

    How to Find the Best Online Casinos in the UAE

    Best HydraFacial Clinic in Dubai: The Magic of Radiant Skin

    Best HydraFacial Clinic in Dubai: The Magic of Radiant Skin

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    How to Choose the Right Mattress: Find the Best Fit for You

    How to Choose the Right Mattress: Find the Best Fit for You

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa