UAE’s Careem buys stake in Egyptian transport start-up

Dubai-based ride-hailing service Careem on Monday said it has invested $500,000 in Egypt’s bus transportation network, Swvl, buying a minority stake in the startup.

The seed funding will help Swvl expand into new cities and markets as well as roll out new product features within its app, including new payment options, Careem said in a statement.

In addition to the investment, Careem’s co-founder Magnus Olsson will be joining Swvl’s board of directors.

Swvl enables commuters heading in the same direction to share a ride in a van or bus. The technology allows users to choose their pick-up and drop-off locations, and track bus movement, the statement said.

The ride-share facility was founded by Mostafa Kandil – a former Careem executive – along with Mahmoud Nouh and Ahmed Sabbah in March this year. The service aims to provide affordable and convenient public transportation in Egypt and other emerging markets, Careem said.

“Swvl and Careem share a similar mission in that we both wish to solve the transportation challenges facing the MENASA region,” Olsson said in the statement.

The company expects to be available in all of Cairo by the end of this year, with plans to launch operations in Alexandria. In 2018, Swvl plans to expand to other emerging markets in the Middle East and North Africa region.

Kandil said Careem’s knowledge in the segment and the regional markets will help Swvl build on its offerings.