LULA, a South African ride-sharing platform, has acquired the South African subsidiary of Zeelo to enhance its market presence and technology capabilities.

Target Information

LULA is a South African ride-sharing platform designed specifically for office workers. The company was founded in 2018 by Velani Mboweni and Xabiso Nodada and has successfully operated in five cities across South Africa. LULA has completed over 700,000 rides for more than 380 corporate clients and boasts a network of over 1,000 registered drivers and shuttle fleet operators. Unlike traditional ride-sharing companies, LULA does not own its vehicles; instead, it partners with individual drivers and fleet operators, charging a commission that ranges from 20% to 40%.

The recent acquisition of the South African subsidiary of Zeelo, a US-based staff bus-sharing startup, marks a significant development for LULA. Zeelo, which launched in South Africa in 2019 and has raised $33 million, is stepping away from the region to refocus on markets in the US, UK, and Ireland. Prior to its exit, Zeelo had completed over 2 million rides annually in South Africa, providing LULA with a robust footprint of over 18,000 riders to facilitate its expansion in the local market.

Industry Overview

The transportation sector in South Africa is primarily driven by work-related expenses, making it a crucial consideration for employees and employers alike. According to Statistics South Africa, transportation costs are the largest work-related expense for South Africans, with