LULA Takes Over Zeelo’s South African Unit

LULA, a ride-sharing platform for office workers, has acquired the South African subsidiary of the US-based staff bus-sharing startup Zeelo. The financial terms of the deal were not disclosed by either company.

Zeelo, which entered the South African market in 2019 and raised $33 million, is withdrawing from the country to concentrate on its operations in the US, UK, and Ireland. Prior to its exit, Zeelo facilitated over 2 million rides annually in South Africa. LULA plans to leverage Zeelo’s existing user base of more than 18,000 riders to extend its services nationwide.

Statistics South Africa reports that transportation is the largest work-related expense for South Africans, with workers spending an average of R2,180 ($121) monthly when using personal vehicles and R960 ($53) when using taxis. Platforms like Uber for Business, MoveInSynch, and LULA offer solutions to help employers mitigate these costs for their employees. Through this acquisition, LULA aims to increase its market share and enhance its ride-sharing services across South Africa.

Source: Ephraim Modise / TechCabal