(Bloomberg) — Sign up for our Middle East newsletter and follow us @middleeast for news on the region.
Swvl Holdings Corp., a Dubai-based ride sharing firm, plans to reduce headcount by 32% as part of efforts to turn cash flow positive by next year.
The cuts will affect 400 people, Chief Financial Officer Youssef Salem told Bloomberg on Monday.
The company said in a statement that the reductions will focus on roles that have been automated, and it will help some employees transition to new roles.
Swvl said its so-called Transport as a Service and Software as a Service businesses are “growing rapidly,” helped by recent acquisitions, and the company plans to continue growing these businesses.
It also aims to continue investing in developing its proprietary technology stack.
The firm has announced a spree of deals over the past year, including Volt Lines — its fourth acquisition since August.
It bought Berlin-based mobility startup Door2door in March, mass transit company ViaPool in November, and Shotl, an on-demand ride service that uses shuttle buses, in August.
Swvl was co-founded by Mostafa Kandil, a former Rocket Internet SE executive who also worked with Careem, which is now owned by Uber Technologies Inc.
The ride-sharing firm made its debut on the Nasdaq Stock Market on April 1 after merging with blank-check company Queen’s Gambit Growth Capital.
Swvl’s shares have more than halved since that debut, valuing the company at $581 million.
(Updates with number of employees affected in second paragraph)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
