Bolt increased the base fare on August 26 by 10% to KES 220 ($1.71) from KES 200 ($1.55). However, drivers claim the increase was insignificant and want a fare structure based on distance and time instead of discounted fares. 

“You just can’t offer a loan product while skipping our key grievance, which is unfair pricing,” said Dennis Nyariki, the deputy chairman of the Organisation of Online Drivers Kenya (OOD).

Bolt first offered car loans in 2019 and offered Renault KWID cars to drivers, but were paused during the COVID-19 pandemic. Drivers could buy cars valued at KES 1.2 million ($9,296) with monthly installments of KES 43,000 ($333). 

Under the new offering, fintech Hakki Africa will source the vehicles and handle loan disbursement. The interest rate will depend on the vehicle type and loan repayment duration. Bolt declined to share specifics on the type of vehicles and the cost.

The Organisation of Online Drivers Kenya (OOD) criticised the loan facility, citing monthly charges under the previous car offering. The union claimed that vehicles were repossessed from drivers due to missed payments, suggesting aggressive loan collection tactics under the offering.

Bolt did not immediately respond to a request for comments.

At least five drivers who spoke to TechCabal said they were not interested in the car loans. They argued that their earnings were insufficient to cover vehicle maintenance costs. 

“The loan facility can’t really help. The money we make is not even enough to service a car,” Stephen Njoroge, a Bolt driver partner, told TechCabal. 

Two other drivers said they were unaware of the facility, although Bolt Kenya may attempt to incentivise them with the product in future campaigns. 

“The loan is only good for people who want to enter the business. We already have the cars,” Timothy Wachira, another Bolt driver partner, said. 

Ride-hailing companies have come under increasing pressure after drivers began pushing for fare hikes to increase their earnings.

While Bolt hopes the car loans will offer some relief to aggrieved drivers, the company may have to consider making bigger concessions by lowering commission. 

Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!

The company has also restricted intercountry ride requests to curb a trend which has mostly involved Bolt users in Nigeria and South Africa.

On Thursday, several accounts on the social platform X posted screenshots of the trend where a Bolt user in either Nigeria or South Africa would request a ride in one of the countries and then cancel it after the driver accepted. 

“We understand the impact this situation has had on our driver-partners in Nigeria and South Africa. We are committed to ensuring a safe, reliable, and secure experience for all members of our community,” said Yahaya Mohammed, Bolt’s country manager for Nigeria.

The trend is believed to have started from South Africans who made fake ride requests to prank Nigerian drivers and canceled the request when the driver arrived at the location. Nigerians, in retaliation, pranked South African drivers. Both countries have a history of online rivalry.

It is unclear what the motivations of the fake ride requests is beyond internet trolling. But it raises question about intercountry ride requests and how they can be misused by bad actors. For ride-hailing drivers, the trend is a nightmare.

“I drove from Cape Town to Stellenbosch to pick up a customer only to realise it was a fake request,” one Cape Town-based driver told TechCabal. “That’s almost 50km worth of fuel gone because of internet jokes.”

“This is inconsiderate to our plight. At a time that fuel is scarce and also expensive, no reasonable person should be doing this,” said one angry driver in Lagos.

As Bolt does not reimburse drivers for the fuel spent on cancelled rides, some have resorted to refusing long-distance requests until the situation is addressed by Bolt.

Editor’s note: This article has been updated to include more context to the trend and a quote from a ride-hailing driver in Lagos.

The drivers, through associations like the Organisation of Online Drivers Kenya (OOD) and  Ridehail Transport Association, are asking for involvement in pricing decisions, improved security features, and a revised system for deactivating drivers following security reports. 

Drivers have repeatedly said the current pricing model benefits the companies at their expense. They argue that the current system, where platforms take an 18% commission and the government takes another 16% (of their commission) as VAT, eats into their profit margins.

The drivers also want a 24-hour customer care line amid claims that the response time when they report security issues in the app is slow.

“The SOS button on the app does not always work as advertised. We also do not like cases where security issues are reported via support chat. We want to speak to a real person on the phone,” said OOD deputy chairman Dennis Nyariki.

OOD has also faulted the apps for unfairly deactivating driver accounts. The body claims the apps unjustly deactivate accounts based on customer complaints, even when the fault may lie with the passenger. 

“Sometimes, when a customer is at fault and reports a trip through these apps, their account may be deactivated while an investigation is conducted, said one Bolt driver who asked not to be named. “Since some of our vehicles have been bought with loans, such deactivations put us at risk of defaulting on our monthly payments.”

Last week, OOD, led by deputy chairman Dennis Nyariki, submitted demands to all Kenyan ride-hailing companies but has yet to receive a response. 

“They haven’t responded formally, and our demands have not been met. We will most likely proceed with demonstrations from Wednesday until they bow to our demands,” Nyariki told TechCabal. 

Uber told TechCabal it received the demands last week and is “following the due process, which includes relevant consultations to review the matters raised.”

Last week, OOD demanded that Uber, Bolt, and Faras temporarily suspend their operations while they address current concerns. This demand has been criticised, with an executive who provides background checks for Bolt drivers calling it “outrageous.” That person argued that drivers are free to choose which platform to use and that these platforms have made taxi services more affordable for riders. 

Another expert claimed that this move could mark the beginning of the end for drivers. “Before Uber, people rarely used taxis due to the high costs.”

Uber and Bolt acknowledged driver concerns and the strike on Monday last week; Uber told TechCabal that it was “closely monitoring the situation and making every effort to minimise disruptions for users.”

Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!

The drivers want to be included in Uber and Bolt’s pricing decisions and believe they’re entitled to this inclusion because they handle expenses like insurance and parking fees. 

“The person who sets the prices doesn’t bear the cost of running the business,” said Zakaria Mwangi, Secretary General of the Ridehail Transport Association. “Ultimately, the taxi apps determine the cost of each trip, not the driver.” 

They also criticise the platforms for charging taxes. “The taxi apps take 18% commission from the trip amount and then deduct the tax of this commission on a driver’s income,” said Mwangi.

However, those taxes are paid to the government and don’t belong to the mobility companies. 

In a meeting in Nairobi on Sunday, the drivers said they would no longer shoulder the operational costs of their businesses while “the app companies continue to take their guaranteed income.” They called it an unfair business practice.”

Bolt said it was “aware of the drivers’ strike and respects their right to peaceful demonstrations.” 

“We are committed to continuous engagement and collaboration with driver partners,” Bolt told TechCabal in a statement, side-stepping questions on commissions. 

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

With the strike in place, only a handful of drivers are accepting rides, leading to surge pricing. 

The trouble with the ride-hailing apps and drivers comes down to an important detail: these drivers are not Uber or Bolt employees but “driver partners.” That partnership leaves the bargaining power in the hands of the companies who insist they only provide a platform for the drivers to earn and take a commission.

The drivers are learning that this is the gag in gig work.

Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!

“The company will continue to permanently block drivers and riders who have been reported for misconduct from accessing the platform,” Bolt said in a statement to TechCabal.

Gig drivers in South Africa have faced allegations of misconduct, harassment and sexual assault. Threats of litigation and public backlash have forced ride-hailing platforms to act.

In March, a former Bolt driver Emmanuel Mudau was convicted and sentenced to two life sentences and two 15-year terms for rape, kidnap and, assault. Last month, another driver was arrested and charged for allegedly stabbing two young women during a feud over their drop-off location in Cape Town.

Following the Mudau case, Godrich Gardee Attorneys stated that it would launch a civil claim against Bolt for failing to protect passengers. The Cape Town case has led to extensive social media outrage about the safety of women passengers on ride-hailing platforms. 

Bolt has been on a rapid expansion drive in the southern Africa region. After initially launching in South Africa in 2016, the company has launched in Zambia, Zimbabwe, and Namibia over the last eight months, bringing its total African footprint to 14 markets.

If approved, the policy will enforce zero-emission vehicle (ZEV) sales targets and investment criteria for car manufacturers and assemblers to qualify for government incentives. The policy will also establish clear requirements for local content (using locally sourced materials) in EVs that will be implemented gradually. The policy will further facilitate the production of EV components and support local battery manufacturing, recycling, and repurposing efforts.

[ad]

At the launch of the draft policies, Kipchumba Murkomen, Kenya’s transportation cabinet secretary, noted that “the shift to electric vehicles significantly cuts emissions of greenhouse gases while reducing the petroleum import bill, currently standing at KES 628.4 billion ($4.8 billion). It will also promote local manufacturing and create jobs.”

To further promote EVs, Kenya has started issuing green-coloured number plates. The initiative aims to “raise awareness about EVs among the general public and encourage more people to consider switching to e-mobility,” Murkomen added.

The policy, launched in collaboration with the trade and investment ministry, will glean from the expertise of the private sector, international investors, and academic institutions to build the necessary EV infrastructure.

Kenya is a key player in African e-mobility, attracting prominent EV manufacturers. BasiGo, an electric bus company backed by the CFAO Group, is one of the pioneers of e-mobility in the country. The company’s electric buses serve Nairobi residents as commuter vehicles, popularly referred to as matatu. ROAM Motors, is also introducing electric buses for Nairobi’s bus rapid transit (BRT) system, but is currently offering electric motorbikes nationwide.

Ride-hailing companies have also joined the e-mobility movement in Kenya. In 2023, Uber partnered with Greenwheels Africa for electric motorbike rentals. Likewise, Bolt has invested over KES 100 million ($770,000) to integrate e-mobility solutions into its services.

According to Roam, the partnership also increases the transition to electric motorcycles from traditional motorcycles. Motorcycle riders, popularly known as boda boda riders, are expected to increase their daily earnings by 30%. 

Roam told TechCabal that it is the largest provider of electric motorcycles putting out the largest volumes in Nairobi targeting boda boda riders and B2B providers. For riders participating in the deal, Mogo will offer financing at a rate of KES 25,000 deposit, and a daily repayment of KES 682 for 24 months. The package includes a motorcycle, battery, charger, and two helmets and vests.

[ad]

“At Roam, our mission is clear, we want to provide the best and most affordable electric motorcycle to the market and Mogo is a great partner in accelerating that mission,” said Mikael Gånge, Co-Founder and Chief Commercial Officer of Roam.

Kenya boasts of about 3 million boda-boda riders according to James Macharia, the minister of transport. The United Nations also estimates that about 5 million Kenyans get their income from riding motorcycles. However, the Kenyan government is keen on converting most of the fuel-based motorcycles to electric.

President William Ruto had on September 1, 2023, launched a national e-mobility programme which has three-wheeled tuk-tuks, or auto rickshaws the focal point of a transition to green transportation. Kenya’s National Transport and Safety Authority (NTSA) plans to convert 2-3 million boda bodas to being electric by 2030.  

Raul Leitis, business development project manager at Mogo said the deal with Roam will go beyond Kenya to the rest of the continent and electric motorcycles will surpass fuel motorcycles in no distant time. 

“We see that the electric motorcycle market is ever expanding and with Roam’s innovative products that enable customers to not only charge at home but also at the Roam Hubs, we believe the electric motorcycle market will eventually become larger than the petrol one,” Leitis said. 

The Estonian ride-hailing giant will hope to win with its pricing strategy. It will waive drivers its standard 15% commission for drivers (Uber and Careem charge 22-33%) and give riders 50% off their trips for the next six months. Bolt absorbs the discounts it gives customers and pays drivers the total amount earned during a trip. 

“Egypt is an important market for our entry beyond merely boosting driver revenues; we aim to ignite demand through competitive pricing,” said Haitham Mansour, Bolt Egypt Country Manager.  “By keeping our commissions substantially lower than our counterparts, we ensure drivers earn more while presenting customers with appealing service fees.”

Bolt’s entry into Egypt marks its 15th African market, following an expansion spree over the last few months. During this time, it has primarily focused on the Southern Africa market after entering Zambia, Zimbabwe, and Botswana, and waived driver commission in those markets for six months. 

Uber is currently the most popular ride-hailing app in Cairo but is considered pricey. Careem is similar in price but offers occasional discounts. inDriver and DiDi are newer, vying for the budget-conscious market with offers and discounts.

In February 2023, Bolt committed to investing more than $500 million in Africa by the end of 2024. This investment aimed to expand Bolt’s services across the continent and create job opportunities. 

The company is also in the process of addressing a crisis with some of its drivers in select markets who accuse the company of using underhand tactics that reduce their income.

In 2021, Nigerian mobility startup Metro Africa Xpress (MAX) became Africa’s most-funded startup in the electric vehicle (EV) space after netting a $31 million round to expand into Ghana and Egypt. 

In 2023, Nigerian mobility startup Moove more than doubled that, netting $76 million in funding for its global expansion. 

Now, Uber is reportedly looking to back Moove with an additional $100 million in a new funding round. According to a Bloomberg report, that would boost Moove’s valuation from $650 million to $750 million and take it closer to becoming a mobility unicorn (a startup with a value of over $1 billion).

So far in 2024, a $24 million in funding clinched by Kenya-based electric mobility standout Roam is the largest funding round in the sector.

The funding is a blend of $14 million in equity and $10 million in debt, from the prestigious US government’s Development Finance Corporation (DFC).

Roam said it will leverage the new funding to expand its production of locally designed and manufactured electric motorcycles and buses.

“As Africa embraces the move toward electric vehicle technology, we are proud of our impact on the environment and livelihoods across Kenya and the wider continent. This funding is a critical step for Roam to achieve our strategic objectives in scaling up and increasing utility to our customers,” said Roam’s Chief Finance Officer, Rajal Upadhyaya.

While some of Africa’s mobility startups are planning to bolster their offerings to include electric vehicle production, fleet purchase and financing, others are setting their sights on regional and overseas expansion to tap into a multi-billion dollar market being driven by rising demand for cheap, low-emissions transport.

A recent raise of $10 million in new debt by Nigeria’s Moove was to fuel its overseas expansion in India, the mobility company said.

The vehicle financing startup said the funding would strengthen its India presence by allowing it to expand operations to three additional Indian cities – Delhi, Pune, and Kolkata.

The startup entered the Indian market in 2023, following a strategic partnership with Uber that targets the introduction of 25,000 electric vehicles in the Indian market. The company currently operates in Bengaluru, Mumbai, and Hyderabad in India and boasts a presence across nine markets in Africa, Europe, Asia, and the Middle East.

Another Nigeria-based mobility operator, Shekel Mobility, recently announced securing $7 million in funding to propel its growth and expansion plans. Shekel is a B2B auto dealers’ marketplace that enables users to find, finance, and sell cars. The startup has an ambitious transaction goal of $10 billion annually, by 2025.

Over its 20 months of operations, the startup said it has facilitated more than $56 million in auto dealer transactions and supported over 1,400 dealers.

“We have positioned ourselves as a transformative force in the African automotive market. This infusion of $7 million in fresh funding is poised to enhance our financial services, expand into new markets, and sustain our impressive growth trajectory,” Shekel said in a statement.

With Francophone Africa continuing to attract foreign startup investments, Senegalese startup, Mbay Mobility has also thrown its 10-year rollout plan into the mix.

The startup, which began piloting electric vehicles in 2022, announced in January it was actively seeking funding to purchase a fleet of 33,000 electric taxis for rollout in Accra, Dakar, and Abidjan. The startup has yet to disclose its funding target.

Earlier this year, Oliver Wyman, a global management firm, in a report titled ‘Shared Mobility’s Global Impact’ projected Africa’s shared mobility market size would grow from $4.2 billion in 2023  to $7.8 billion by 2030. 

Growth in the market will come from ride-hailing, e-bike and scooter rentals and car-sharing, driven by  Africa’s fast-growing urban population on a continent with the world’s largest population under the age of 30.

Going asset-light means that Gokada owns only 10% of the estimated 5,000 bikes on its platform. Drivers are onboarded as partners and are charged a commission for every order they fulfill. 

Founded in 2017, Gokada initially began with a hire-purchase agreement for drivers. The arrangement involved the company buying the motorcycles and charging a daily repayment fee spread for up to three years. The plan was to convert these drivers into partners upon completing their payments. But this approach proved costly.

Since Gokada owned the bikes, it took on expensive maintenance costs that ran into tens of thousands of dollars monthly between late 2021 and early 2022.

“We thought to ourselves, what can we do to stop this? If we had continued, the business would have closed down,” Omotosho said. The company reworked the hire-purchase agreement and passed the maintenance cost to drivers. These decisions helped Gokada grow its revenue in 2022, the company said.  

Gokada will no longer buy motorcycles for drivers and will instead connect drivers who need motorcycles to financing companies. It will only manage the motorcycles and oversee payment collection.

The company is also in talks with investors to raise funding this year, Omotosho said, declining to provide additional details. 

In 2022, Gokada was looking to sell a competitor, Kwik Logistics, but the deal did not go through. In February 2023, TechCabal reported the company was looking to raise $100,000 through crowdfunding. The company raised $5.3 million in Series A funding in 2019.

Gone through the ‘worst phase’

2020 was a difficult year for Gokada. A ban on two-wheelers in Lagos forced the company to pivot from ride-hailing services to the delivery business. It also laid off 80% of its workforce. Fahim Saleh, the company’s former CEO, was also murdered in his New York apartment in the same year.

In February 2023, Gokada laid off at least 54 employees, citing harsh macroeconomic conditions. It also had to become a leaner operation, reducing its two offices into one and renegotiating terms with some of its vendors. The COO said no employee has been let go since the last layoffs and the staff count is now around 30.

“We have gone through the worst phase. We are not above the water yet. This survival period has allowed see what needs to be supported and what isn’t necessary,” he said.