Swvl’s million-dollar smart bus startup acquisition has been canceled. The tech-enabled mass transit solution provider confirmed that the deal between it and Zeelo, a U.K.-based bus platform, will no longer continue.

swvl zeelo acquisition, zeelo smart bus, canceled swvl's zeelo acquisition

(Photo : Dan Kitwood/Getty Images)
A double decker bus makes its way over Westminster Bridge, past the Houses of Parliament and Big Ben on March 28, 2012 in London, England.

Previously, Zeelo and Swvl confirmed that the acquisition, which was estimated to cost $100 million, back on Apr. 28. They said that their partnership will be completed on May 24.

However, there were no updates after the provided deadline. Now, Zeelo and Swvl announced that their transaction has been terminated.

Swvl’s Million-Dollar Smart Bus Startup Acquisition Canceled!

According to TechCrunch’s latest report, their various reasons why the acquisition deal was canceled.

swvl zeelo acquisition, zeelo smart bus, canceled swvl's zeelo acquisition

(Photo : Mark Kolbe/Getty Images)
A not in service bus drives along York street in the CBD on February 19, 2013 in Sydney, Australia. State Transit will be cutting buses on dead routes in a Route Optimization Plan which is estimated to save 38, 000 km a week in ‘dead running’ buses.

To clarify things, both of the companies agreed to terminate the partnership, allowing the cancellation to go smoothly.

Zeelo explained that among the reasons behind the termination is the falling stocks of Swvl. Both of the startups said that the deal no longer makes sense because of the collapsing tech markets.

Recently, MarketWatch reported that Swvl’s shares declined by around more than 15% after announcing its other acquisition plan, which specifically involves Urbvan Mobility.

“I think the market conditions have changed. We’re still in a great place, the businesses is growing really, really quickly,” said Zeelo CEO Sam Ryan.

He explained that the deal termination is not bad news at all, claiming that their company is protected from the public market changes.

Zeelo Experiences Business Growth

While Swvl is affected by the falling tech markets, Zeelo seems is experiencing massive business growth. Experts even claimed that the acquisition cancellation is the best move that the smart bus startup can think of.

Zeelo claimed that it is seeing continued growth in its businesses in South Africa, the United States, as well as the United Kingdom.

As of writing, the company is enhancing its private rides for commuters and students. Aside from this, Zeelo was also able to raise more than $19 million in funding from ETF Partners, InMotion Ventures, and other investors.

Meanwhile, GM and LG announced that they will construct three EV factories in the U.S.

Meanwhile, Rivian’s workforce has been reduced by 6% because of EV production challenges.

For more news updates about Swvl and other companies in the tech markets, always keep your tabs open here at TechTimes.

This article is owned by TechTimes

Written by: Griffin Davis

TECH NEWS RELATED

No turbos, no electric motors, the new Porsche 911 GT3 RS is pure race car for the road

The Porsche 911 GT3 RS is the last bastion for a certain type of sports car. It sacrifices outright speed and performance in favour of faster lap times, driving dynamics and, for lack of a better word, feel. It's all about the timing and experience. To do that, it ...

View more: No turbos, no electric motors, the new Porsche 911 GT3 RS is pure race car for the road

Scientists Develop 'Artificial Leaves' Made for Clean Fuel Production in UK

Scientists and researchers at the University of Cambridge in the United Kingdom developed ‘artificial leaves’ that produce carbon-neutral syngas. Clean fuels will be produced through sunlight and water, as reported by SciTech Daily. (Photo : Gareth Cattermole/Getty Images)CAMBRIDGE, ENGLAND – NOVEMBER 10: A general view of the River Cam on ...

View more: Scientists Develop 'Artificial Leaves' Made for Clean Fuel Production in UK

Heatwave in China Causes Factories Supplying to Tesla, Apple, and More to Shutdown

China’s Sichuan region’s Contemporary Amperex Technology Co. Limited (CATL) and Intel facilities are shutting down owing to a heatwave-related power shortage, which is also hurting the factories of Tesla, Apple, Toyota, and other companies. CATL and Intel Are Shutting Their Sichuan Plants According to CNN and Bloomberg’s reports cited ...

View more: Heatwave in China Causes Factories Supplying to Tesla, Apple, and More to Shutdown

HP launches cartridge recycling partner initiative in ASEAN

Available in Singapore, Malaysia, Philippines and Korea, while Thailand will be included soon.

View more: HP launches cartridge recycling partner initiative in ASEAN

In security, what is zk-SNARK?

An intro to the most popular zero-knowledge protocol.

View more: In security, what is zk-SNARK?

Apple Releases Security Updates to Fix Two Zero-Day Vulnerabilities Attackers Use to Hack iPhones, iPads, and Macs

Apple released an emergency security update to address the exploited zero-day vulnerabilities. Apple products such as Macs, iPads, and iPhones have been affected by two vulnerabilities that were detected. To address two zero-day vulnerabilities that have reportedly been actively exploited, Apple has issued fixes in macOS Monterey 12.5.1 and ...

View more: Apple Releases Security Updates to Fix Two Zero-Day Vulnerabilities Attackers Use to Hack iPhones, iPads, and Macs

Tesla Denies Bloomberg’s Report Claiming Legal Exec’s Departure in a Rare Twitter Response

Tesla denies Bloomberg’s recent report, which claims that the legal chief of the electric vehicle (EV) maker has parted ways with the Elon Musk-led tech giant. (Photo : Maja Hitij/Getty Images) FUERSTENWALDE, GERMANY – SEPTEMBER 03: Tesla head Elon Musk talks to the press as he arrives to have a ...

View more: Tesla Denies Bloomberg’s Report Claiming Legal Exec’s Departure in a Rare Twitter Response

Sony Opens Another Public Queue for PlayStation 5 Restock

The PlayStation 5 hasn’t recently been made accessible via Sony’s online store, however, because Sony is now performing a restock, this is the perfect opportunity to start a line. PlayStation 5 Stocks Will be Replenished by Sony Sony hasn’t recently made the PlayStation 5 available via its online shop. ...

View more: Sony Opens Another Public Queue for PlayStation 5 Restock

Android 13 will reach Vivo X80 Pro and iQOO 9 Pro users soon

Google Cloud updates Chronicle to climb on managed detection and response train

Cloud environments challenge network visibility

EY strikes digital transformation alliance with Kyndryl

7 ways businesses can fight network tool sprawl

Razorpay buys Ezetap to tap into offline payments

Software spending to grow despite headwinds: Forrester

Microsoft .NET 6 bundled with Ubuntu Linux

The 10 biggest Netflix movies in the world this week

Apple Preps Official iPhone 14 Launch Event for Sept. 7 in Tandem with Assorted Gadget Debuts

Chinese Parents to Use Digital CNY ‘Smart Contracts’ to Pay for After-school Lessons

Fintech unicorn Razorpay acquires Ezetap in a cash-and-equity deal

OTHER TECH NEWS

Top Car News Car News