Uber's major competitor Bolt expanding through the UK
Bolt is one of the major competitors for Uber. Available in around 45 countries and have approximately 75 million regular users. Bolt currently has over 65,000 drivers in the UK and they are looking to expand further. They have recently had their operator's licence renewed by Transport for London (TfL) until 2024. TfL has also granted Bolt permission to have over 10,000 drivers on the platform in London at once.
According to Bolt, they are the fastest-growing ride-hailing platform in the world. The UK is a key market for them, and they hope to topple Uber as the dominant platform. While many people might assume Uber and Bolt are essentially the same thing, they are actually quite different.
What’s different about Bolt?
The key difference for drivers is the low rate of commission charged per journey. Drivers are only charged 15% of the journey cost, compared to Uber’s 25%. The pricing is also marginally cheaper, with a base fee of £2.50 which is better for riders. After this, the pricing structure is comparable to Uber, with £1.25 charged per mile and 15p per minute.
Cancellation fees also work differently. Bolt drivers can charge a £5 discretional cancellation fee if you decide against a journey. Uber on the other hand charge a £10 cancellation fee. This is the case even if their GPS retrieves an incorrect address or they are later than expected.
Recently, Bolt announced that they would be allowing their drivers to ‘name their price’ after Uber announced a 10% price hike in London. Bolt's regional manager for western Europe, Sam Raciti, said:
"Drivers have consistently asked us for the ability to set their own prices so they can ensure a journey is profitable enough before it's accepted.”
“By making these changes we hope to reduce waiting times on the Bolt app and have fewer driver cancellations so customers can get to their destination quickly and safely following increased demand in recent weeks.”
"We have built our business around giving drivers total flexibility. These changes are part of that philosophy and will create a better functioning marketplace."
Expanding through the UK
Bolt is the first real challenger that Uber has had in the UK. Their rapidly growing customer base and number of drivers seems to reflect satisfaction from both camps. Thanks to their success, Bolt are now in a position to be expanding their offering to more areas in the UK.
Edinburgh is the first location they have expanded to in Scotland, with documents suggesting they will soon be moving into Glasgow as well. As part of their launch in the country, Bolt donated £20,300 to the TreeTime Edinburgh initiative. However, this move has been met with some apprehension from the App Drivers and Couriers Union (ADCU). The chairman of the ADCU commented saying:
“The news that Bolt is coming to Scotland is somewhat concerning to us. We will not tolerate any nonsense. Bolt must comply with all applicable legislation and licensing conditions from day one.”
Bolt are now available in 15 locations around the UK, including Cardiff, Newcastle, Wolverhampton, Bristol and Milton Keynes.
Struggling to meet demand
Despite their expansion plans, ride-hailing firms have been under fire on social media. A spokesperson for Uber recently said that they have been experiencing a 20-40% increase in demand compared to the same period pre-pandemic. But a massive decrease in the number of drivers since the start of the pandemic means they are struggling to meet demand. This is leading to dissatisfaction in their customer base, with many customers turning back to traditional taxis as a consequence.
The driver shortage has been a source of much concern in the industry and one of the many topics we’ve been diving into on our ‘What time you on’til?’ podcast. If you’ve not listened yet, you can catch it here or on all major streaming platforms.