By Uwin Lugoda
In the past decade technological innovation has taken over the traditional ride-hailing services, and has given rise to a slew of smartphone apps around the world. The Sri Lankan market has been no exception, with the inclusion of international ride-hailing apps like Uber, and the introduction of local apps like PickMe; and on 24 November, the country welcomed a new addition to its ride-hailing sector.
Bolt, a leading European transportation platform committed to making urban travel easier, quicker, and more reliable, announced their entry into the local market, with a pilot launch of its services in Colombo, which also marked its entry into the South Asian market.
Built by Founder and Chief Executive Officer (CEO) Markus Villig with his brother Martin Villig in 2013, Bolt currently operates globally in over 35 countries and 150 cities, with over 30 million passengers and one million drivers. With an initial investment of $ 6,000, the company has since grown to raise over $ 400 million in the last seven years.
In 2018, the company expanded its services further by offering e-scooter rentals, and with the recent announcement of a $ 120.9 million investment strategy, Bolt has indicated its intentions to double down on the European scooter segment.
Then in 2019, the app also rolled out its food delivery service, Bolt Food, which is now operational in 13 countries in Europe and Africa. This same year, the company announced its "Green Plan", an initiative to reduce the ecological footprint of the transportation industry and Bolt as a company. The Green Plan goals include offsetting Bolt's contribution to the CO₂ emissions of the European transportation sector by at least five million tonnes by 2025 and adding more green ride-types for passengers to choose from.
By 2020, Bolt was ranked third in the Financial Times’ “1,000: Europe's Fastest Growing Companies”, and has been named “Europe’s Hottest Unicorn” by The Europas Awards, due to the company’s valuation of $ 1 billion in 2018. The app is also a direct rival of global ride-hailing giant Uber in countries like Nigeria, where they hold 60% of the market share.
Fast forward to November: Bolt launched in Colombo with a fleet of 2,000 drivers, and announced their commitment to offer affordable trips, while not charging drivers any commission for using the platform. During the launch the company showcased that their fares were 20% lower than other competitors, for a minimum of six months.
“Bolt is on a mission to make urban travel more affordable, convenient, and responsible. We are always looking at the new markets that we believe could benefit from more alternatives when it comes to city transportation, both from the passengers' side and the drivers' view, and we think that it's a good time for the people of Sri Lanka to try Bolt services,” said a company representative when speaking to The Sunday Morning Business.
Bolt is currently offering ride-hailing with cars, as well as tuk tuks and motorbikes in Colombo, and has planned to steadily increase their fleet of drivers and customer base within the city.
When it comes to ride-hailing services, Sri Lanka is becoming increasingly convoluted, however Bolt stated that their experience in Europe and Africa has proven that ride-hailing is not a winner-takes-all market. They explained that there are two big things that help them stand out from the rest – being driver-focused and responsible.
“We put a big focus on drivers because we believe that this will mean a better service for passengers. On Bolt, drivers earn more than on other platforms, mainly because of our lower commission.”
They stated that their ride-hailing model benefits both drivers who have to pay a smaller commission as well as passengers who end up paying less for their journey. The app also currently only allows for cash payments in the local market, with card payments being unavailable.
“Being smart about how we grow the company and focusing our operations on efficiency allows us to pass the savings on to our customers – passengers and drivers.”
Bolt has chosen to enter Sri Lanka during the peak of the Covid-19 crisis with the firm belief that people still need to move around in the city, and aim to do their best to fulfil this demand. Their services can now be accessed by passengers by downloading the secure and free Bolt app from the Apple App Store or Google Play Store.
Passengers looking for a ride can simply open the app, and set their location and their intended destination. The app then gives an upfront cost estimate for the trip. Once passengers accept the cost estimate, the app alerts drivers nearby who accept the ride. Passenger safety is ensured by the app, which allows passengers to see their driver’s details and track the driver in real time, making it easy to get safely into the correct vehicle with the correct driver.
The company has also ensured that drivers can easily register with the company through their website by completing the relevant formalities or through the Bolt Driver app, which is also available on the Apple App store or Google Play Store.
Furthermore, due to the prevailing pandemic in the country, Bolt also strongly advises all their drivers and passengers on the platform to follow the instructions of the World Health Organisation (WHO) and adhere to the health guidelines put forward by local health authorities.
“Our target for the next year is to keep working on bringing affordable and convenient urban transport to more people in Sri Lanka and expand on our driver and rider base here.”
Built by Founder and Chief Executive Officer (CEO) Markus Villig with his brother Martin Villig in 2013, Bolt currently operates globally in over 35 countries and 150 cities, with over 30 million passengers and one million drivers. With an initial investment of $ 6,000, the company has since grown to raise over $ 400 million in the last seven years.
In 2018, the company expanded its services further by offering e-scooter rentals, and with the recent announcement of a $ 120.9 million investment strategy, Bolt has indicated its intentions to double down on the European scooter segment.
Then in 2019, the app also rolled out its food delivery service, Bolt Food, which is now operational in 13 countries in Europe and Africa. This same year, the company announced its "Green Plan", an initiative to reduce the ecological footprint of the transportation industry and Bolt as a company. The Green Plan goals include offsetting Bolt's contribution to the CO₂ emissions of the European transportation sector by at least five million tonnes by 2025 and adding more green ride-types for passengers to choose from.
By 2020, Bolt was ranked third in the Financial Times’ “1,000: Europe's Fastest Growing Companies”, and has been named “Europe’s Hottest Unicorn” by The Europas Awards, due to the company’s valuation of $ 1 billion in 2018. The app is also a direct rival of global ride-hailing giant Uber in countries like Nigeria, where they hold 60% of the market share.
Fast forward to November: Bolt launched in Colombo with a fleet of 2,000 drivers, and announced their commitment to offer affordable trips, while not charging drivers any commission for using the platform. During the launch the company showcased that their fares were 20% lower than other competitors, for a minimum of six months.
“Bolt is on a mission to make urban travel more affordable, convenient, and responsible. We are always looking at the new markets that we believe could benefit from more alternatives when it comes to city transportation, both from the passengers' side and the drivers' view, and we think that it's a good time for the people of Sri Lanka to try Bolt services,” said a company representative when speaking to The Sunday Morning Business.
Bolt is currently offering ride-hailing with cars, as well as tuk tuks and motorbikes in Colombo, and has planned to steadily increase their fleet of drivers and customer base within the city.
When it comes to ride-hailing services, Sri Lanka is becoming increasingly convoluted, however Bolt stated that their experience in Europe and Africa has proven that ride-hailing is not a winner-takes-all market. They explained that there are two big things that help them stand out from the rest – being driver-focused and responsible.
“We put a big focus on drivers because we believe that this will mean a better service for passengers. On Bolt, drivers earn more than on other platforms, mainly because of our lower commission.”
They stated that their ride-hailing model benefits both drivers who have to pay a smaller commission as well as passengers who end up paying less for their journey. The app also currently only allows for cash payments in the local market, with card payments being unavailable.
“Being smart about how we grow the company and focusing our operations on efficiency allows us to pass the savings on to our customers – passengers and drivers.”
Bolt has chosen to enter Sri Lanka during the peak of the Covid-19 crisis with the firm belief that people still need to move around in the city, and aim to do their best to fulfil this demand. Their services can now be accessed by passengers by downloading the secure and free Bolt app from the Apple App Store or Google Play Store.
Passengers looking for a ride can simply open the app, and set their location and their intended destination. The app then gives an upfront cost estimate for the trip. Once passengers accept the cost estimate, the app alerts drivers nearby who accept the ride. Passenger safety is ensured by the app, which allows passengers to see their driver’s details and track the driver in real time, making it easy to get safely into the correct vehicle with the correct driver.
The company has also ensured that drivers can easily register with the company through their website by completing the relevant formalities or through the Bolt Driver app, which is also available on the Apple App store or Google Play Store.
Furthermore, due to the prevailing pandemic in the country, Bolt also strongly advises all their drivers and passengers on the platform to follow the instructions of the World Health Organisation (WHO) and adhere to the health guidelines put forward by local health authorities.
“Our target for the next year is to keep working on bringing affordable and convenient urban transport to more people in Sri Lanka and expand on our driver and rider base here.”