A New Direction for Swvl
While the consumer business might still be at least partially open, Swvl, by any measure, is moving focus toward B2B services. It shows that the firm has rolled out new branding and rebranded its website, which pitches Swvl as a company that offers “technology-driven mobility solutions for enterprises and governments.” The firm has been completely stripping its previous consumer options off its platform, from the “Daily” and “Travel” choices.
Today, Swvl is an enterprise-only services company that focuses on products such as SaaS and MaaS, directly providing services for companies, governments, and schools. This is a significant shift in Swvl’s fortunes from its start as a consumer application where users booked seats in buses traveling on specific routes.
Financial Constraints and Strategic Shifts
Swvl’s switch from B2C to B2B appears to be a reaction to financial constraints, including a recent lowish IPO. Even though Swvl maintained some consumer services in Egypt up to 2023, the company has switched completely to B2B. Moreover, consumer business accounted for $23 million and 27% of total sales last year, but Swvl is flipping because higher-margin opportunities have surfaced in enterprise.
Furthermore, as part of the strategic reorientation, Swvl just announced the launch of a regional headquarters in Riyadh, Saudi Arabia under the Kingdom’s Vision 2030 initiative and the Regional Headquarters Program. The program attracts incentives such as a 30-year corporation tax exemption and a 10-year exemption from Saudization requirements. It is quite likely that these will augment Swvl’s ability to win government contracts in Saudi Arabia, where it has been active for four years.
Future Prospects
Swvl’s pivot toward enterprise services is already paying off, with new contracts in Saudi Arabia adding $2.6 million in annual revenue. As Swvl continues its strategic shift, its focus on B2B offerings could drive growth, even as it faces challenges in balancing consumer expectations.
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