LULA, a ride-hailing platform specializing in corporate commuters, has acquired the South African arm of Zeelo, a US-born bus-sharing startup. While the financial details remain undisclosed, the deal is a significant move for LULA. Leveraging Zeelo’s network of over 18,000 riders, LULA aims to enhance its footprint across South Africa. Zeelo, which entered the South African market in 2019, previously facilitated more than two million rides annually and had raised $33.6 million by August 2023.
Zeelo is now shifting its focus to the US, UK, and Ireland markets. Sam Ryan, Zeelo’s Founder and CEO, acknowledged the difficulty of leaving South Africa but expressed optimism about the transition to LULA. Transportation is a major expense for South African workers, with an average monthly spend of R2,180 ($121) on cars and R960 ($53) on taxis. Platforms like LULA, Uber for Business, and MoveInSync help employers reduce these costs for their employees. Following this acquisition, LULA, with its fleet of over 1,000 registered drivers and shuttle operators in five South African cities, plans to increase its market share. LULA, founded in 2018 by Velani Mboweni (CEO) and Xabiso Nodada (Head of Product), has completed up to 700,000 rides for more than 380 businesses. The company partners with individual drivers and shuttle operators, taking a 20% to 40% commission. Mboweni anticipates that Zeelo’s operations will help LULA become cashflow positive, facilitating further expansion.
Artificial intelligence is rapidly evolving, with models like ChatGPT-3.5 and GPT-4 leading the way. However, Africa has lagged behind despite some initiatives in countries like Nigeria. Enter Ijemma Onwuzulike, an American-born innovator who developed IgboSpeech, the first Igbo voice-to-text AI model. Onwuzulike aims to make speaking Igbo as accessible as Spanish or French, hoping to inspire interest in the language. She developed an Igbo API, a digital dictionary, in 2020, overcoming challenges with inconsistent Igbo dictionaries. The API now includes over 5,000 words, nearly 30,000 sentences, and numerous audio recordings, definitions, and proverbs. The Igbo API is integrated with Nkowa Okwu, an Igbo language learning platform founded by Onwuzulike, showcasing her dedication to promoting the Igbo language.
OKX, a global cryptocurrency exchange and web3 services provider, will exit the Nigerian market on August 16, 2024, due to new local regulations. Nigerian users will not be able to open new positions or access most services on OKX after this date, except for withdrawals and closing/redemption of open positions. The exchange advised users to close all positions and withdraw funds before the deadline. Although funds will remain secure and accessible until August 30, 2024, users will need to contact OKX customer service for any account-related actions post-deadline. OKX is not the only exchange facing regulatory challenges in Nigeria. KuCoin recently announced a 7.5% VAT on top of the usual 0.1% transaction fees and suspended all P2P NGN services in compliance with regulations. Binance also halted all NGN services and is currently facing legal issues with Nigerian authorities over money laundering and tax evasion charges.
In case you missed it: Ignoring this crucial step could cost your startup everything, d.light raises $176M to scale its solar operations in Kenya, Uganda, and Tanzania, and Why is the VICTIM Mindset So Attractive? – Baggage Claim.
Opportunities: Tech professionals in Africa: fill out this questionnaire for a chance to win 100 Euros. Ventures Platform has over 100 job openings across its portfolio companies. Apply here. Bubusplug is organizing a hybrid event for job seekers with the Young African Leaders Initiative (YALI) Lagos Network on July 27, 2024. Apply here.
