SA mobility startup LULA acquires UK-based Zeelo’s South African business

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South Africa’s LULA, an enterprise ride-sharing platform, has announced its acquisition of the UK-based Zeelo’s operations in South Africa, a move that will see it scale significantly. 

Founded eight years ago by Xabiso Nodada and Velani MboweniLULA is a tech-enabled ride-sharing solution that enables people to be collected from their homes and taken to work and back again safely and reliably. 

The UK-based Zeelo, meanwhile, is a smart bus platform for organisations, similar to LULA in that it provides flexible turn-key and plug-in transportation programs for commuting and school runs. The deal will see Zeelo’s South African operations transition to LULA’s solution. Over the last five years, LULA has consistently maintained a year-on-year growth of between 2.5x and 4x, despite interruptions caused by the COVID-19 pandemic and a global recession.  

The acquisition will mean an increase in customers, vehicles and operating partners, and staff to strengthen and scale LULA’s business in South Africa, as well as into other African markets.

“Significantly, the acquisition of Zeelo‘s operations in South Africa means that LULA becomes a profitable business, with enough breathing room to scale smart, rather than scale fast,” Nodada said. 

Zeelo launched operations in South Africa in 2018, but its exit is part of a strategic realignment that means the company is now directing its focus toward further expansion in the UK, Ireland, and North America. 

“It has been a remarkable journey and we are grateful to our team, clients and suppliers for giving us the opportunity to serve them. Whilst the decision to exit the region was a challenging one, we are excited to support the transition of our customers and suppliers to the LULA platform and look forward to witnessing LULA’s future successes in tackling the transportation challenges in South Africa,“ said Sam Ryan, founder and CEO of Zeelo.

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Passionate about the vibrant tech startups scene in Africa, Tom can usually be found sniffing out the continent's most exciting new companies and entrepreneurs, funding rounds and any other developments within the growing ecosystem.

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