The deal marks a strategic move for LULA, which aims to scale its services and solidify its position in the market.

Founded in 2014 by Xabiso Nodada and Velani Mboweni, LULA offers a tech-enabled solution for employee transportation, providing safe and reliable rides between homes and workplaces.

The company has experienced substantial growth over the past five years, with a consistent year-on-year increase of between 2.5 and 4 times its size, despite economic challenges.

Zeelo, a similar platform specializing in smart bus solutions for organizations, will now see its South African operations integrated into LULA’s platform.

This acquisition is expected to boost LULA’s customer base, vehicle fleet, and workforce, enabling the company to expand its reach both domestically and into other African markets.

“This acquisition is a game-changer for LULA,” said Xabiso Nodada, co-founder of LULA. “It propels us into profitability and provides the necessary foundation for strategic growth.”

Zeelo, which entered the South African market in 2018, is refocusing its efforts on the UK, Ireland, and North America.

The company expressed gratitude for its time in South Africa and confidence in LULA’s ability to continue serving its customers and partners effectively.

“We believe LULA is well-positioned to address South Africa’s transportation challenges,” said Sam Ryan, founder and CEO of Zeelo. “We are excited to support this transition and anticipate LULA’s future success.”