On November 17, SWVL stated that it would shut its intercity travel business in Pakistan and lay off personnel. The company made the decision to cease all activities and close the TaaS (transport-as-a-service) vertical on November 18. Under the retail model, commuters could use SWVL’s buses for intracity transit.
For corporate clients, such as companies, schools, and other customers who run their own transportation programmes, SWVL offered tailored services under the TaaS paradigm.
The corporation gave no explanation for the shutdown, although a source within the organisation claimed that the challenging choice to close down may have been motivated by the global decline in investment.
The company had a risky financial situation and had been operating under a high cash burn model. For the six months ending June 30, 2022, SWVL reported net losses of $161.6 million.
For the first half of 2022, the company had negative operating cash flows of $76.6 million.
Egypt, Pakistan, Kenya, Saudi Arabia, Jordan, Argentina, and Turkey provide the majority of SWVL’s earnings. Only five of SWVL’s top ten revenue-generating nations had businesses that were adjusted EBITDA positive or breakeven as of last month, according to an announcement.
The business has been moving toward profitability, and by 2023, it intends to have a positive cash flow.