The global fuel price inflation has been a crisis for some, but a blessing for others. Recently, SWVL announced the suspension of its operations in certain parts of Pakistan due to the ongoing economic situation.
However, SWVL’s Chief Financial Officer Youssef Salem recently told Reuters that the company is observing a rise in customers as more people continue to shift from their private conveyance to public transport. He highlighted that SWVL is especially witnessing a growth in customer base in Egypt and Pakistan.
Remarking on the development, Youssef stated:
For us, there’s two major impacts from the oil price and inflation. One, very positive operationally, and one very challenging from a capital markets perspective.
He highlighted that the rise in fuel price has boosted the bookings by 40 percent, which is a positive element. However, the company has laid off a majority of its resources to cut back on operational expenses to show profitability and alleviate the ire of stakeholders, Youssef stated.
He added that the company has withdrawn from its goals of expansion in Jordan, Kenya, and Argentina. Furthermore, the company has raised fares by 10-20 percent to ride out the ongoing global economic recession.
Although SWVL is still teetering on the edge of closure in Pakistan, the growth in customers could mark its eventual return to form.
