LULA has acquired the South African subsidiary of Zeelo, a staff bus-sharing startup, to expand its ride-sharing services for office workers in the region.

Target Information

LULA, a ride-sharing platform specifically designed for office workers, has acquired the South African subsidiary of Zeelo, a US-based staff bus-sharing startup, for an undisclosed amount. The transaction, described as a cash-only deal, remains shrouded in confidentiality as both companies did not disclose specific financial details.

Zeelo, which established its presence in South Africa in 2019, has raised a substantial $33 million in funding. During its operational period in the country, Zeelo successfully completed over 2 million rides annually before its decision to exit the market in favor of focusing on opportunities in the US, UK, and Ireland. With this acquisition, LULA aims to leverage Zeelo’s existing network, which encompasses more than 18,000 riders, thereby enhancing its service offerings across South Africa.

Industry Overview

In South Africa, transportation costs represent the largest work-related expense for employees, according to Statistics South Africa. On average, South African workers incur expenses of R2,180 ($121) when using