LULA, a ride-sharing platform based in South Africa, has announced its acquisition of the South African operations of the UK firm Zeelo, marking a significant expansion for the company.
Established eight years ago by Xabiso Nodada and Velani Mboweni, LULA offers a technology-driven ride-sharing service that ensures safe and reliable transportation for individuals from their homes to work and back. Zeelo, headquartered in the UK, operates as a smart bus platform designed for organizations, providing flexible transportation solutions for commuting and school runs similar to LULA. Zeelo’s South African operations will be integrated into LULA’s services with this acquisition.
Over the past five years, LULA has achieved consistent year-on-year growth between 2.5x and 4x, despite challenges posed by the COVID-19 pandemic and a global recession. The acquisition is expected to boost LULA’s customer base, fleet size, operational partners, and workforce, enhancing its business in South Africa and other African markets.
“This acquisition of Zeelo’s operations in South Africa positions LULA as a profitable enterprise, allowing us to scale intelligently rather than rapidly,” stated Nodada. Zeelo began its South African operations in 2018, but its withdrawal is part of a strategic shift towards expanding further in the UK, Ireland, and North America.
“It has been an incredible journey, and we are thankful to our team, clients, and suppliers for the opportunity to serve them. While the decision to exit was difficult, we are enthusiastic about facilitating the transition of our customers and suppliers to the LULA platform and look forward to seeing LULA succeed in addressing transportation challenges in South Africa, remarked Sam Ryan, founder and CEO of Zeelo.
