{"id":32586,"date":"2021-05-26T19:54:25","date_gmt":"2021-05-26T14:24:25","guid":{"rendered":"https:\/\/appscrip.com\/blog\/?p=32586"},"modified":"2023-02-17T17:09:08","modified_gmt":"2023-02-17T11:39:08","slug":"bolt-business-model-boomed-by-leaps-bounds","status":"publish","type":"post","link":"https:\/\/appscrip.com\/blog\/bolt-business-model-boomed-by-leaps-bounds\/","title":{"rendered":"Bolt Business Model: How Bolt Boomed By Leaps And Bounds"},"content":{"rendered":"
From\u00a010 million\u00a0customers<\/span> in\u00a0May 2018<\/span>\u00a0to\u00a025 million\u00a0customers<\/span> in\u00a0February 2019<\/span>, Taxify saw the success, that if put into words, would spell Bolt. Bolt, a name that echoes achievement, stole Uber\u2019s thunder in Africa in\u00a02018<\/span>. <\/strong><\/h5>\n
<\/h5>\n

Bolt is an Estonian mobility company offering vehicles to clients for hire. Bolt is into micromobility, car-sharing, and food delivery. It is based in Tallinn (Estonia) and operates in over 500 cities situated in 45 countries in Europe, Africa, Western Asia and Latin America.<\/p>\n

Today, the Bolt business model sits over 150 million euros<\/span> while making 40 countries<\/span> in Europe, Africa, Middle East, Asia, and Latin America<\/strong> dance on its beat. Birthed seven years back, Bolt is all set to give its\u00a07<\/span> top competitors a run for their money: Uber<\/span>, Didi<\/span>, Grab<\/span>, Lyft<\/span>, Go-Jek<\/span>, FreeNow<\/span>, and Cabify<\/span>.<\/strong><\/span><\/h5>\n

It may seem like a two-horse race for the globe, but can we underestimate Bolt<\/strong>\u2019s ability to spread across 35 countries<\/strong> within seven years<\/strong>?\u00a0<\/span><\/p>\n

With Uber<\/strong> being well-trenched in the region, can bolt be considered a potential contender for \u201cthe leader of the largest market in Europe<\/em>\u201d position?<\/em><\/strong><\/span><\/p><\/blockquote>\n

A start-up that stands tall in more than 150 cities<\/strong> in Europe<\/strong>, Africa<\/strong>, Asia<\/strong>, and North America<\/strong> is planning to be more uber than Uber, but how? How a 19-year-old<\/strong> college dropout turned a usual Bolt business model into a billion-dollar company?<\/p>\n

2013-2016: A Unicorn Was Born<\/strong><\/span><\/h3>\n
\"Bolt
Bolt’s Former Logo<\/figcaption><\/figure>\n

mTakso<\/strong> was launched in August 2013<\/strong> by a 19-year-old<\/b>\u00a0computer science student, Markus Villig<\/strong>. It seemed as if success couldn\u2019t wait to meet Markus. After one year of being launched, the company went on to foreign shores. mTakso<\/strong> later became Taxify<\/strong> and is now known as Bolt<\/strong><\/a>.\u00a0<\/span><\/p>\n

The Bolt<\/strong> business model was not designed under the influence of Uber<\/strong><\/a>. It was Villig\u2019s bad ride-hailing experience that made Bolt become something beyond an idea.\u00a0<\/span><\/p>\n

All I knew was that taxis were a horrible experience at the time in Tallinn. We used to have a few dozen taxi companies, and you usually had to call 10 of them before you got a car, and when it turned up, you couldn\u2019t pay with a card. So, we thought we should apply technology to this platform. -Villig\u00a0<\/span><\/strong><\/p><\/blockquote>\n

\"BoltFounded in Estonia in 2004<\/strong>, Skype<\/strong><\/a>, a free communication tool, was also the inspiration behind Villig\u2019s idea. Skype<\/strong> Showed the world that a tech business can take birth anywhere.\u00a0<\/span>In an interview with\u00a0<\/span>CNBC<\/a><\/strong>, Villig said:\u00a0<\/span><\/p>\n

I realized that tech is one of those industries where you can have huge leverage in the fact that you can accomplish big things with a very small team.\u00a0<\/span><\/strong><\/p>\n

This is an industry where customers really care if they get good value for their money. So if you can offer customers 20% better pricing or you can make sure the drivers take 20% more on every ride then that really pays.<\/span><\/strong><\/p><\/blockquote>\n

So, what is the Bolt business model built on?\u00a0<\/span><\/p>\n

The company began with the simple model of creating the platform, signing up existing taxis, and allowing people who are not taxi drivers to get authorized and join. <\/span><\/strong><\/p>\n

The concept is also easy to understand. The transparency of driver ratings and digital payments made it substantially better for consumers, which is why it is adopted so quickly.<\/span><\/strong><\/p><\/blockquote>\n

Bolt Business Model: How Bolt Makes Money<\/span><\/strong><\/h3>\n

Bolt has more than 100 million customers globally and 3+ million partners offering rides and deliveries to customers using its platform.<\/p>\n

With search, the business model is the same across the world, but with ride-hailing, you have to build a business city by city. You need to start from scratch every time. \u2013 Villig\u00a0<\/span><\/strong><\/p><\/blockquote>\n

The Bolt business model made tech scream customer satisfaction via passenger app, driver app, and admin dashboard.<\/p>\n

Passenger App<\/span><\/strong><\/h4>\n

Bolt<\/strong> seems to become synonymous with \u201coptions.\u201d Bolt<\/strong> sits seamlessly on Android, iOS, Windows phones, and Apple Gallery. It slaps its customers with a sea of payment options, including cash, debit card, credit card, and mobile carrier billing.\u00a0<\/span>Bolt became the world\u2019s first transportation app to allow users to pay for rides via mobile carrier billing.\u00a0<\/span><\/strong><\/p>\n

Once Bolt driver accepts the customer\u2019s requested trip, a particular driver\u2019s profile pops up on the passenger app, revealing the driver’s identity. Passengers can pay using an in-app wallet, leave a rating, and invite friends to get free rides.<\/p>\n

\"Bolt<\/p>\n

Driver App<\/span><\/strong><\/h4>\n

The company has blurred all the fault lines in its bolt business model -if there were any by wanting its drivers to earn more than Uber drivers.<\/p>\n

Bolt<\/strong> takes a 15% commission<\/strong> per ride from drivers, whereas Uber<\/strong> charges its partners a 25% commission<\/strong> per ride. That said, Bolt<\/strong> drivers earn over 10% more on average<\/strong> as compared to other ride-hailing platform drivers. However, Bolt\u2019s ride-sharing concept is similar to any other ride-sharing app.<\/span><\/p>\n

For drivers to sit on Bolt<\/strong>, they have to undergo in-person training and a criminal background check. An age of 21<\/strong> and a driver’s license of 3 years<\/strong> is a big must. Here\u2019s a glimpse of the Bolt driver app<\/strong><\/a> on the iPhone.\u00a0<\/span><\/p>\n

\"Bolt<\/p>\n

An SOS button<\/strong> also sits on the driver app, allowing the driver to notify Lagos State Emergency Response Agency (LASEMA)<\/strong><\/a> in real-time in case of any emergency. Don\u2019t these features shout Bolt\u2019s safety concern for its customers?<\/p>\n

Admin Panel<\/span><\/strong><\/h4>\n

Admin panel is the base on which the Bolt business model is built. The admin is armed with everything from setting up fares to managing drivers to tracking appointments.<\/p>\n

Read More: Shopify Business Model: How It Bolsters Its Billion-Dollar Business<\/a><\/strong><\/h4>\n

2017:<\/span> Bolt Was Born To Make Headlines<\/span><\/span><\/strong><\/h3>\n

Bolt<\/strong> faced a setback in London<\/strong> when\u00a0<\/span>Transport for London (TfL)<\/a><\/strong>\u00a0forced the company to shut down its services. 2017<\/strong> brought Bolt a piece of good news too. It\u00a0became the number one travel app in Kenya<\/strong> and Nigeria<\/strong> and number two in South Africa<\/strong>.\u00a0<\/span><\/p>\n

Before Didi Chuxing<\/a><\/strong>\u2019s undisclosed investment value (believed to be \u201ceight-figure US dollar sum<\/em>) gave Bolt<\/strong> its wings in 2017<\/strong>, Taxify<\/strong> already knew how to walk well, thanks to 2 million euros<\/strong> raised from Estonian<\/strong> and Finnish angel investors<\/strong>.\u00a0<\/span><\/p>\n

2018: Bolt Being More Uber Than Uber\u00a0<\/strong><\/span><\/h3>\n

May:\u00a0<\/span><\/strong>Bolt<\/strong> reached 10 million<\/strong> customers.<\/span>\u00a0<\/span><\/strong>May 2018<\/strong>\u2019s funding round resulted in a 175 million US dollar<\/strong> investment from Didi<\/strong>, Daimler<\/strong><\/a>, and others, boosting the company\u2019s valuation to 1 billion<\/strong> and making it a UNICORN<\/strong>.\u00a0<\/span><\/p>\n

September:<\/span><\/strong> Bolt set out its stall to create a transport-as-a-service ecosystem. It expanded its services into dockless electric scooters<\/a><\/strong> in Paris<\/strong> under the name Bolt<\/strong>. Bolt<\/strong> became the first company<\/strong> to sew scooters with \u201cvehicle for hire\u201d services in one mobile app.\u00a0<\/span><\/p>\n

\"Bolt<\/a><\/p>\n

2019: It\u2019s Not Bolt That Bleeds<\/strong><\/span><\/h3>\n

February:\u00a0<\/span><\/strong>Bolt<\/span>\u00a0<\/span><\/strong>reached 25 million<\/strong> passengers.<\/span>
\n<\/span><\/strong>March:\u00a0<\/span><\/strong>Bolt<\/strong> became Europe\u2019s third fastest-growing company<\/a><\/strong> as per Financial Times<\/strong>.<\/span>
\n<\/span><\/strong>June:\u00a0<\/span><\/strong>Bolt plotted London<\/strong> welcome and re-launched in London<\/strong> along with its 20,000<\/strong> registered drivers.<\/span>\u00a0<\/span><\/strong>It is now Uber\u2019s first real competition in London.<\/span>
\n<\/span><\/strong>July:\u00a0<\/span><\/strong>Bolt stepped into Tunis<\/strong>.<\/span>
\n<\/span><\/strong>August:\u00a0<\/span><\/strong>Bolt\u2019s other child,\u00a0<\/span>Bolt Food<\/span><\/strong><\/a>\u00a0was born in Tallinn<\/strong> with the ambitions to grow in Africa<\/strong> and Europe<\/strong>.\u00a0<\/span><\/p>\n

Bolt Food Delivery Model: How Does Bolt Business Delivery Work?\u00a0<\/span><\/strong><\/h3>\n

The company infused delivery services into its existing Bolt business model. Bolt food delivery platform acts as a matchmaking model that allows local vendors to sit on its platform for as low as\u00a0<\/strong><\/span>$0.069<\/strong> and provide value to customers in the form of food, groceries, and parcels. Bolt\u2019s business delivery platform comes attached with the following services:\u00a0<\/span><\/p>\n

Bolt<\/strong> became larger than Uber<\/strong> in Africa<\/strong>, thanks to the customer-centric bolt business model. The credit not only goes to Uber\u2019s Estonian competitor, Taxify<\/strong> but also to the fault lines found in Uber\u2019s business model. Uber<\/strong> urged drivers to go on strike and leaving the company for Taxify by cutting prices by <\/span>40%<\/a><\/strong>.\u00a0\u00a0<\/span><\/p>\n