Bolt, a leading ride-hailing company, suffered a Sh1.27 billion revenue drop in the Kenyan market for the fiscal year ending June 2024. That’s a 25% decline from Sh3.27 billion in the previous year to Sh2.45 billion for the Estonian-based company.
Fare Increase and Customer Retention
In October 2023, Bolt increased its minimum fares across all categories, setting a range of Sh200 to Sh250. This was to cushion drivers from rising fuel costs that had eaten into their earnings. But the fare hike resulted in a big loss of customers in a price sensitive market hence the revenue decline.
Regulatory Hurdles and Licensing Disputes
Bolt also faced additional challenges when the National Transport and Safety Authority (NTSA) declined to renew its operating license. The authority cited multiple complaints from drivers and their representatives including allegations of an “illegal” booking fee and breach of the commission cap. NTSA asked the company to address these issues before considering a license renewal.
Safety Concerns and Market Competition
User safety also emerged as a major issue for Bolt. Reports of misconduct and security incidents prompted the company to sack over 5,000 drivers between May and November 2023. This gave rivals like Uber an opportunity to expand their market share. Uber’s revenue grew from Sh2.15 billion in 2023 to Sh2.39 billion in 2024. LittleCab’s revenue also grew from Sh1.13 billion to Sh1.44 billion in the same period.
Industry Wide Revenue Decline
The combined revenue of Kenya’s top three ride-hailing firms—Bolt, Uber and LittleCab— declined to Sh6.3 billion in the year ending June 2024 from Sh6.56 billion in the previous year. The Kenya Revenue Authority (KRA) reported that tax collections from digital ride-hailing services also declined by 4% to Sh1.15 billion from Sh1.2 billion.
Bolt’s Strategic Adjustments
To stay in the game, Bolt has implemented several measures. The company has expanded its women-only ride service, allowing female riders to book female drivers only. Bolt has also intensified its crackdown on driver misconduct to rebuild customer trust and prevent further loss of customers to its competitors.