TechPression

Tag: Bolt

  • Ride-hailing companies in Nigeria face fare dilemma amidst fuel price surge

    Ride-hailing companies in Nigeria face fare dilemma amidst fuel price surge

    The escalating fuel prices in Nigeria have placed ride-hailing companies like Uber and Bolt in a precarious position, forcing them to consider increasing fares to offset the rising costs.

    The recent fuel shortages, which pushed prices to a staggering ₦897 per litre, have significantly impacted the operations of these companies.

    While a fare increase seems like a logical solution to cover the additional fuel expenses, it could also lead to a decline in passenger demand. Finding a balance between the needs of drivers, who require higher earnings to cover their operational costs, and passengers, who seek affordable rides, is a delicate task for these companies.

    Read also: Nigerian Uber, Bolt drivers reject price cuts, threaten boycott

    How do fuel price increases affect public transportation? 

    The surge in fuel prices has directly affected drivers’ earnings. Many have reported a significant decrease in their daily income as they spend more on fuel. Some drivers have resorted to negotiating higher fares with passengers to mitigate the impact, often leading to disputes and inconvenience.

    The potential fare increases for passengers could make commuting more expensive, which might decrease demand, particularly for non-essential rides or longer distances.

    How companies responded to the change in fuel price

    Ride-hailing companies carefully consider their options in response to the fuel price surge. Some implement small fare increases, while others conduct internal analyses to determine their next steps.

    For example, Uber is exploring various strategies to reduce costs, such as optimising driver earnings while keeping fares affordable for riders. 

    Read also: Kenya ride-hailing companies increase fare amidst drivers’ agitation

    However, ride-hailing companies are actively seeking other measures to meet the increase in fuel prices besides fares. These may include extending fuel subsidies to the drivers to ease fuel costs, persuading the drivers to adopt efficient fuel usage techniques, and negotiating with the fuel stations for discounts or lower fuel prices. 

    As the fuel crisis unfolds, ride-hailing companies in Nigeria will have no option other than to make the necessary changes to help them survive the hard times.

    The final results will, therefore, only be determined by the proportions between the requirements of drivers and clients using their services and the above companies’ capacity to identify new strategies for minimising ever-increasing fuel costs. 

  • Nigerian Uber, Bolt drivers reject price cuts, threaten boycott

    Nigerian Uber, Bolt drivers reject price cuts, threaten boycott

    The Amalgamated Union of App-Based Transporters of Nigeria (AUATON), which represents e-hailing drivers, has rejected the recent rate reduction agreement that several app companies and the Presidential Committee on the National Gas Initiative announced.

    In a statement released by its state chairman, Jaiyesimi Azeez, on Wednesday, the union—representing over 120,000 drivers in Lagos and 300,000 nationwide—said it was not part of the conversation and did not support the decision.

    It went on to say that its members, who serve as the transaction’s implementation arm, ought to deliberate and decide on essential choices, including reducing riders’ fares.

    Read also: Kenyan ride-hailing drivers demand fair pay

    “The majority of AUATON members are seriously concerned about the information that some app businesses (such as Bolt and Uber) and the Presidential Committee on the National Gas Initiative met in Abuja to discuss a plan for fare reduction. We want to clarify that neither AUATON nor its members were present during this discussion, nor do they support the decisions made during the Abuja meeting.

    “We feel that a critical choice like a fare reduction for riders should be discussed and agreed upon with us, the implementing arm of the transaction, as our members, who own their vehicles and deal directly with riders, are the backbone of this sector. Accordingly, AUATON would not accept any unilateral fare reductions whose effects on how our vehicles operate and how our members make a living have not been thoroughly studied,” according to a portion of the statement.

    E-hailing drivers agreed to cut prices if…

    Through the P-CNGi, the union pushed the government to cover the cost of installation and the complete conversion kits.

    The statement stated that the union may quickly implement fair price reductions that impact Nigerians’ lives after converting its members’ vehicles, receiving all the conversion kits, and fully paying related installation fees.

    Azeez bemoaned that the app businesses had failed to represent the union’s members’ interests effectively and urged the government to start a direct dialogue with union members.

    “Please note that AUATON is uniquely positioned to advocate for the rights and interests of our drivers as the only union representing app-based transporters that operate around the clock daily. Based on our experience, app companies have not adequately represented the interests of our members, as we are the actual business owners and operators.

    “The union can speak for herself and directly present her case to the P-CNGi, understanding the critical nature of this endeavour.

    “We assume that before now, the Federal Government, through the P-CNGi, had been discussing CNG Kit interventions and the desired fare reduction with the transport app owners. This will not achieve the desired result.”

    “We fervently demand direct dialogue with the P-CNGI regarding all previously mentioned issues, and we stand prepared to collaborate with the Federal Government to attain the intended outcomes expeditiously,” he concluded.

    Read also: Nigerians and South Africans clash in new Bolt ordering war

    E-hailing drivers want fair commission rates

    However, AUATON requested assistance from the Lagos State Government, as well as equitable commission rates and pricing changes.

    In addition, it demanded free CNG kits for vehicle retrofits, a five per cent commission rate, and participation in price-cutting measures.

    In addition, Azeez expressed concern about the effect on drivers’ lives and demanded direct talks with the PCNGi regarding fare reduction and CNG kit initiatives.

    He threatened to launch a national boycott and rallies on behalf of the union if app companies did not accede to its demands.

    AUATON cited the Lagos State government’s initiative to empower young people in the e-hailing sector in its proposal to distribute LagRide vehicles to its members, urging stakeholders to support its pursuit of a more equitable market.

  • Nigerians and South Africans clash in new Bolt ordering war

    Nigerians and South Africans clash in new Bolt ordering war

    A new battle is brewing between Nigerians and South Africans. This time, it’s all about who can outdo the other in placing orders on Bolt, the popular ride-hailing app.

    The rivalry, which started as a lighthearted challenge, has quickly gained momentum on social media. Users from both countries turn to Bolt in droves, determined to show which nation reigns supreme.

    But this isn’t just a fun competition. It’s a reflection of the deep-seated competitive spirit that exists between these two African powerhouses.

    Read also: Bolt offers driver vehicle financing with Hakki Africa

    Origin of the Bolt Ordering Battle

    The Bolt ordering battle was initially a joke encouraged by Nigerians and South Africans on social media. In no time, it turned into a rivalry, with users of both nations pressing their counterparts to order pretty much anything on Bolt. When it was just a one-sided joke, they called it #BoltBattle, and today, the internet has turned it into #BoltWar.

    Even celebrities on different social platforms have embarked on the challenge, encouraging others to take it. This has aggravated the problem by bringing new people into the list of contenders. The competition has been fun for the users and has enhanced the popularity and frequent usage of Bolt in both countries.

    The Bolt ordering battle is much more than a battle of orders; it is a battle of sovereignty. Nigerians and South Africans have always been rivals in most fields, including sporting and entertainment, and now even competing app-based online transportation hailing. The challenge has created a corporate spirit where every side is willing to do better than the other.

    Social networks have become an essential tool for fueling this fight. The ability to share results, memes, and banter has made the competition open to everyone. This has kept the challenge going as users continue to interchange with orders placed within a minute. This is because, through the history of social media, people have been united for a festival as they engage in competitions in the contemporary world.

    Read also: Advancly and Bolt Nigeria team up to offer drivers credit access

    Exploring Bolt’s Success in Nigeria and South Africa

    To Bolt’s surprise, this Bolt-ordering war has shaken the ride-hailing sector. The company’s sales will improve with fresh Nigerian and South African orders. Bolt is the show’s star in both nations, so this competition has increased brand exposure.

    However, it’s not just Bolt that’s benefiting. The ride-hailing industry is getting a boost as more people become aware of these services.

    The challenge may even inspire similar competition in other regions, potentially leading to increased usage and growth for the industry. Ultimately, while the rivalry between Nigerians and South Africans may continue, the ride-hailing industry is the real winner.

  • Bolt offers driver vehicle financing with Hakki Africa

    Bolt offers driver vehicle financing with Hakki Africa

    Bolt and Hakki Africa, a microfinance provider, have launched a strategic relationship to provide financing for Bolt users’ vehicles. Over the following 18 months, the collaboration plans to distribute 1,500 automobiles to Bolt platform drivers who fulfil specific requirements.

    Driver-partners who fulfil the requirements will be eligible for loans with lower down payments and will be rewarded with incentives determined by their performance.

    Read also: Advancly and Bolt Nigeria team up to offer drivers credit access

    How does Bolt & Hakki Africa expand vehicle ownership?

    For Kenyan cab drivers who may not easily access bank loans, Hakki Africa has developed a credit scoring system, in addition to other fintech options. Thanks to the collaboration between Bolt and Hakki Africa, more people, both new and old, can afford to drive their vehicles through the platform.

    Studies indicate that drivers in Africa who do not own their vehicles tend to earn less than those who do. A study conducted in Johannesburg, South Africa, found that many drivers in Africa do not own their vehicles but rent them, leading to a significant financial burden.

    The rental costs, along with platform commission fees, often leave drivers with minimal net earnings. For this reason, Hakki Africa aims to enable more drivers to own their vehicles and maximise their earnings.

    Bolt and Hakki Africa leverage fintech for Drivers

    Linda Ndung’u, CEO of Rides at Bolt, commented that they are committed to supporting their drivers by improving their financial stability and overall well-being in cooperation with Hakki Africa.

    They have partnered with Hakki Africa to offer affordable and environmentally friendly car financing alternatives to accomplish this.

    Read also: Shesha’s journey to becoming a local e-hailing challenger

    Working together, they can make it easier for more drivers to buy their automobiles, which will boost their income, cut operational expenses, and foster a more prosperous driving community.

    Yumeka Abe, director of Hakki Africa, exclaimed that they are delighted to collaborate with Bolt to offer drivers top-notch vehicle financing services on their platform.

    When it comes to building credit and getting loans, their credit score methodology is a lifesaver for temporary workers who were previously unbanked. They see them as crucial to the growth and development of Kenya’s economy.

    Drivers who take out loans with them will be able to acquire a car after 3.5 years of payments. Once the debt is paid off, they have many options: sell the car to start a new business, improve their net income as drivers, or take advantage of other opportunities.

  • Advancly and Bolt Nigeria team up to offer drivers credit access

    Advancly and Bolt Nigeria team up to offer drivers credit access

    Bolt, a worldwide ridesharing platform, has collaborated with Advancly, a B2B firm promoting the adoption and expansion of the credit economy in Africa, to give its drivers access to credit and help them meet their immediate financial needs.

    Providing loan financing to African entrepreneurs to grow and scale their enterprises, Advancly has Powered Progress for years. Technology-backed credit-scoring systems enable firms to borrow faster using Advancly Spark, its primary offering.

    A future-forward product, Advancly Embed, allows organisations to integrate financial services into their operations and deliver financial value to their users/ecosystem without building these skills. This Bolt partnership is made using Advancly Embed.

    Read also: Google empowers African startups for Accelerator Programme

    Seamless Integration: Bolt Drivers and Advancly’s Credit Options

    Bolt drivers will easily access Advancly’s financing solutions through Bolt Embed. This integration simplifies financing for Bolt Drivers, giving them access to low-interest, short-term loans for fuel and car maintenance, improving their services and increasing their income.

    Lotanna Julian, the co-founder and CEO of Advancly, said they are thrilled to embark on this journey with Bolt Nigeria and bring their innovative credit solutions to their extensive network of drivers. He added that the gig economy plays a vital role in shaping the future of business for independent workers. This partnership reaffirms their commitment to enable entrepreneurs to grow on their terms by providing them access to credit.

    Country Manager at Bolt Nigeria, Yahaya Mohammed, added that they recognise the vital role that financial stability plays in the lives of their drivers. In addition to their platform, they are excited to offer them additional resources to help them manage their finances, provide exceptional services to riders and ultimately grow their businesses with Bolt.

    Read also: Telcos grant extension for “NIN to SIM” linkage

    Advancly and Bolt: Empowering Gig Workers and Entrepreneurs

    This strategic partnership, originally introduced in beta in Lagos and Abuja, is a major turning point in the provision of sound financial solutions to gig workers and highlights the commitment of both organisations to enabling individuals to take charge of their financial lives on their own terms.

    The “Bolt Rewards” part of the Bolt Driver app will be where drivers may receive this incentive if they qualify due to their consistency and performance history with the Bolt platform.

    Advancly is laying the necessary rails to provide Africa and emerging markets with a more sophisticated and reliable financial system. Advancly provides entrepreneurs access to money and advisory support to help them build their firms and succeed through credit, data, and technology.

    Bolt is the first mobility super-app in Europe, providing a superior substitute for all the functions that a private car may perform, such as ride-hailing, sharing vehicles and scooters, and shopping and food delivery.

  • Kenyan ride-hailing drivers demand fair pay

    Kenyan ride-hailing drivers demand fair pay

    Ride-hailing drivers in Kenya initiated a five-day strike on Monday to demand equitable compensation and eliminating value-added taxes. 

    After the first day, they marched to the National Transport and Safety Authority (NTSA) office. The strike occurred ten months after the Transport Ministry demanded that Bolt and Uber reduce their commission to 18%.

    Read also: Uber and Bolt drivers seeks Lagos ride-hailing regulation

    Fair Pay for Fair Work: The Driver’s Dilemma

    Uber and Bolt’s drivers seek to be included in the pricing decisions and believe they are entitled to this inclusion due to their responsibility for managing expenses such as insurance and parking fees.

    “Zakaria Mwangi, Secretary General of the Ridehail Transport Association, stated that the individual who establishes prices is not responsible for the business’s operations.” “Ultimately, the taxi apps are responsible for determining the cost of each trip, not the driver.”

    Additionally, they criticise the platforms for levying taxes. 

    “The taxi apps deduct the tax of this commission on a driver’s income and then take 18% commission from the trip amount,” stated Mwangi.

    Nevertheless, these duties are remitted to the government and are not the responsibility of the mobility companies.

    The drivers stated that they would no longer be responsible for the operational expenditures of their enterprises while “the app companies continue to take their guaranteed income.” This statement was made during a meeting on Sunday in Nairobi. They referred to it as an unfair method of conducting business.

    Read also: Bidding Wars: Bolt vs inDrive

    Strike Response: Bolt vs. Uber

    Bolt acknowledged the drivers’ strike and respected their right to peaceful protests. “We are committed to continuous engagement and collaboration with driver partners,” Bolt told reporters, avoiding commission questions.

    Uber acknowledged the strike and said it is “closely monitoring the situation and making every effort to minimise disruptions for users.”

    As a result of the strike, fewer drivers are willing to accept rides, which has increased prices. They are “driver-partners,” which is a concern for the ride-hailing companies and the drivers who use them. They claim they only assist drivers in earning a commission, but this relationship gives them bargaining leverage.

  • Shesha’s journey to becoming a local e-hailing challenger

    Shesha’s journey to becoming a local e-hailing challenger

    Shesha is a South African startup that wants to change the established e-hailing landscape, dominated mainly by international giants like Uber and Bolt, by offering a local alternative that considers local conditions. 

    Shesha was created because “it became apparent that“—not only from a customer perspective, where safety and understanding of local needs weren’t always high on the agenda of its competitors—but also that drivers felt exploited and under-appreciated by what they saw as foreign companies that weren’t paying attention to their working conditions.

    Read also: Uber and Bolt drivers seeks Lagos ride-hailing regulation

    Safety Strategies Shared by a Corporation Spokesman

    Nomsa Mdhluli, a spokesperson for Shesha, told a media firm that safety was the company’s top priority. 

    “Shesha verifies everyone’s identities on a Shesha trip, from the customer to the driver, ensuring that they are indeed who they say they are. A second opportunity existed when we realised that drivers, as a pivotal cog in the wheel, felt unwelcome.

    The startup is funded by numerous stakeholders, including the Gauteng Taxi Industry Trust, Santaco Gauteng, and the Gauteng National Taxi Alliance, which Mdhluli said gives it an “intimate understanding of local conditions”.

    “It has allowed us to broker a historic understanding of peaceful cooperation between the taxi and e-hailing Industries, bringing to an end years of low-level conflict over routes and passengers,” she said.

    The company is onboarding over 13,000 drivers and claims its customer uptake has been “phenomenal”.

    We are now testing in Gauteng but hope to expand to other regions. Mdhluli said creating an innovative startup is difficult, especially in a “David vs. Goliath” setting where giants rule.

    However, our market differentiation gives us an edge, and one of our competitors has de-platformed over 6,000 hazardous drivers due to our presence. We would never have allowed these drivers on our platform!” At competitive prices, Shesha makes money through traditional e-hailing.

    Read also: Bidding Wars: Bolt vs inDrive

    About Shesha

    Shesha is a South African startup known for its innovative approach to mobile commerce. It focuses on providing an efficient platform for on-demand delivery services to revolutionise how products reach consumers.

    Established in 2015, Shesha leverages technology to streamline logistics, offering a fast and reliable delivery experience. The company has made significant strides in the South African market, contributing to the growth of the local tech ecosystem and providing new opportunities for businesses and consumers alike.

    Its user-friendly platform and commitment to excellence have positioned Shesha as a critical player in the industry.

  • Uber and Bolt drivers seeks Lagos ride-hailing regulation

    Uber and Bolt drivers seeks Lagos ride-hailing regulation

    AUATON, made up of drivers, has asked the Lagos State Government to accept its joint agreement that calls for ride-hailing businesses to be regulated in the State. 

    In an interview, Kolawole Aina, the South-West zonal head of AUATON, said this. He said that the agreement is meant to enforce rules and look out for the well-being of its members.

    Drivers’ plea for involvement shows that Uber, Bolt, and InDrive, among others, have not treated them well. According to Aina, the state paper addresses low prices, hefty commissions, and app-based corporations activating and deactivating drivers at will.

    Read also: Uber achieves milestone profit with Increased bookings

    Uber and Bolt Drivers vs Lagos State Government

    In 2023, the union was formed after agitations among drivers, with app-based companies alleging maltreatment. The executive stated that the union identified problems, developed solutions, and presented them to the government.

    The Lagos State administration ignored us, but the federal transport and labour ministries did. “The collective agreement sets out how the government, app-based companies, drivers, and riders can share industry responsibilities.

    “It will be a system where all the four communities can monitor each ride, and each community can mutually benefit.” 

    Government Propositions: Insurance and Security Demands

    In their demands to the government, the drivers also want their members to be protected and have to carry insurance. 

    “Insurance and safety issues have grown very important.” “I seriously can’t recall how many drivers have died on the job this year or lost property to their passengers or customers,” Aina said.

    Read also: Bidding Wars: Bolt vs inDrive

    He expressed his regret for the deputy president of the association’s passing this year due to exhaustion while in his vehicle. 

    Additionally, he observed that “criminally inclined customers occasionally order rides, and during the ride, they kill the driver, steal the car, and sell it.” 

    “This is the point at which insurance becomes necessary,” Aina stated that all journeys will be insured, including the driver, passengers, vehicle property, and the vehicle itself. 

    He criticised the use of algorithmic management in app-based companies, asserting that machines are making decisions that humans should make.

  • Bidding Wars: Bolt vs inDrive

    Bidding Wars: Bolt vs inDrive

    With Bolt’s new flexible price system, riders can offer higher fares to drivers to improve their chances of getting rides when there are a lot of drivers looking for rides.

    Because ride-hailing giants are having difficulty getting people to drive as extra work, trips are running later. Some popular ride-hailing apps make you wait more than 10 minutes before finding a driver.

    Read also: Bolt challenges InDrive dominance in Botswana

    Launched in 2013, Bolt provides ride-hailing, micromobility (e-scooters and bikes), and food delivery across Europe. Bolt, headquartered in Tallinn, Estonia, operates in 40 countries and 200 cities. Bolt offers affordable pricing and a user-friendly app to minimise urban congestion and emissions while prioritising safety and sustainability.

    The startup has grown swiftly, targeting ride-hailing heavyweights like inDrive, which provides a flexible and transparent alternative.

    Setting Competitive Prices for Driver Onboarding

    Price is one of the main things that keeps more drivers from joining. Since May 2023, when the subsidy was taken away, fuel costs almost doubled. 

    Drivers have said that this, along with the fee that ride-hailing companies get, has cut into their profits. Still, it’s hard to pass these costs on to customers because there is a lot of competition, and many Nigerians are already paying high prices because inflation is rising quickly.

    These bidding systems, which are similar to what competitor inDrive used to set itself apart when it first came out in the Nigerian market, are meant to encourage drivers to take rides, especially when demand is high.

    The driver earns more. “All trips have the same commission,” said Bolt’s communication manager, Femi Adeyemo.

    Bolt and Uber’s Pricing Strategies for Drivers

    Ride-hailing giants like Bolt and Uber usually charge customers a base price and then use “surge pricing” to encourage drivers when demand is high. However, the driver has no say in the deal because computers decide the rush price.

    Read also: Uber elevates Kenyan rides, launches Uber Comfort

    This concept of providing drivers with direct access to consumers to negotiate a reasonable cost has been essential in the success of inDrive, and Bolt will adopt the same notion in the hopes that it would minimise the time customers have to wait.

    Ultimately, gig drivers continue to press for a presence at the decision-making table even though the move to modify its pricing scheme will be seen as a victory for Uber drivers. For now, they have successfully gained some negotiating power with customers; however, it is not yet clear when they will also be successful in gaining the same bargaining leverage with ride-hailing businesses.

  • Bolt challenges InDrive dominance in Botswana

    Bolt challenges InDrive dominance in Botswana

    The ride-hailing market in Botswana is getting more competitive as Bolt, the company based in Estonia, joins the country and challenges the leadership of inDrive, the app based in California. 

    Both platforms are offering incentives to attract drivers and customers, but they also face some obstacles in the Southern African nation.

    Bolt offers zero commission for six months

    Bolt started in Gaborone, the capital city of Botswana, on February 28, the same day that inDrive introduced a 10% commission charge for its drivers. Bolt said it will not charge any commission from its drivers for the first six months, as part of its rollout plan. The company said it has onboarded 100 drivers so far and aims to increase its income while offering competitive pricing to customers.

    Read also: Bolt announces audio travel recording safety function

    Bolt is not new to Africa, as it operates in 14 countries on the continent, including South Africa, Nigeria, Kenya, and Ghana. The company offers various services, such as ride-hailing, micro-mobility rental, food and grocery delivery, and car sharing. Bolt also claims to have several safety features, such as an SOS button, a share-my-ride option, and a driver unmatching feature. Additionally, Bolt requires its drivers to have all the relevant licenses from local regulators.

    inDrive defends its commission charge

    inDrive, on the other hand, has been operating in Botswana since February 2019 and has been the only ride-hailing platform in the country until now. The company said it decided to introduce a 10% commission charge for its drivers, after operating without commissions for five years, to make further investments in Botswana, which it considers a “top priority market”.

    Vincent Lilane, the business development representative of inDrive in Southern Africa, said the commission charge aligns with the company’s strategic goals to provide fair urban mobility access to more customers in Botswana. inDrive’s model allows riders to set a price for a ride, which a driver can accept or refuse.

    However, not all drivers are happy with the commission charge. Some drivers who spoke to journalists said it was unfair for inDrive to start charging commissions before addressing some issues they had raised, such as the low prices offered by some riders and the lack of a minimum fare. One driver said he only accepted some rides because of desperation. Another driver said he did not mind the commission, as he understood that inDrive was a business, too.

    Bolt announces Bolt Den Accelerator program

    Challenges and opportunities in the ride-hailing market

    Both Bolt and inDrive face some challenges and opportunities in the ride-hailing market in Botswana. The market is ready for growth, as there is a high demand for alternative and affordable transport options, especially in urban areas. However, the market also presents some difficulties, such as the allegations of driver misconduct, the pushback from public transport operators, and the regulatory uncertainties.

    Bolt and inDrive will have to compete for drivers and customers while also ensuring their safety and satisfaction. The ride-hailing war in Botswana has just started, and it remains to be seen how it will unfold in the coming months,