Estonian ride-hailing company Bolt has launched
Bolt Go, a cheaper mobility service, in South Africa. After successful trials in East London and Port Elizabeth, the company is rolling the service out to 35 cities and towns where its service is active beginning with secondary provinces and extending gradually towards urban centres. Rides will cost 20% less than its most basic plan Bolt (Sedan). On the driver
side, the company is welcoming hatchback car owners to sign up on the Bolt Go platform as a way to reduce entrepreneurial barriers into the ride-hailing economy. Because prices are generally low compared to sedans and costs of maintenance are low, fares can be cheaper than what is obtainable on other Bolt services. It is unclear if drivers receive the same commissions as their counterparts on Bolt, Isolate, Premium, XL and Van.
The reduced entry barrier for drivers comes at a dire time. Unemployment in South Africa has soared to more than 30%, a record high. Between February and April, more than three million South Africans lost their jobs and President Ramaphosa warned in June that the unemployment situation was expected to worsen. The National Treasury has said that more than
7 million
jobs in total could be lost in the coming months. For hatchback car owners with up-to-date licenses and car documents, this presents and ample income opportunity.
Bolt, whose revenues were down 75% in March during peak lockdown periods across the globe as with many sharing services, has pivoted to deliveries and are exploring
e-scooter micro mobility
services in some of
its markets as it looks to make a recovery. Even with customers paying less for rides in this one market, its June raise of
€100 million
gives it the cushion its competitors lack.
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