Ride hailing App Bolt has kicked off the search for long-term solutions to solve the business disruptions occasioned by drivers striking over rates charged on the platform.
- The company links the strikes to different underlying factors some of which includes the macro-economics and demand from the fleet owners putting ‘unrealistic’ targets on the drivers.
- Drivers operating on the ride-hailing industry have over the past months held protests against the companies pricing formulae that they complained as being unfair and had resorted to printing their price rates beyond prices customers were charged on the apps.
- Following complaints, the app companies increased prices across all their offerings in a manner to take care of the drivers’ interest without hurting riders, but resetting the price offline has not gone well with riders, leading to protests from customers.
“Most of these cars on our platform are not owned by the drivers, they rent them for a fee paid either daily or on a weekly basis. Majority of the owners acquired the cars through loans and the target they put on the drivers to recoup their investments leave the drivers with narrow margin to take care of their daily needs,” Linda Ndung’u, General Manager-Rides, Bolt Kenya says.
“We blame the constant drivers’ strike on these factors, it becomes worse with the current economic situation, pricing isn’t solution to the entire problem. Regulators need to look into policies addressing macroeconomics,” said George Abasy, Public Manager, Bolt Kenya.
At a press briefing, Ndung’u said that sees a long-lasting solution in asset financing partnership to address the take meagre earnings in the industry. “We want our drivers to have their own vehicles instead of labouring for others putting unrealistic targets on them, which makes their lives unbearable,” she says.
The company is currently exploring a partnership with Hakki Africa to provide financing for drivers. The collaboration aims to deploy 1,500 vehicles over the next 18 months, enabling Bolt drivers to enhance their earning potential by enabling vehicle ownership.
Hakki Africa’s role in this partnership involves providing a credit scoring system and other fintech solutions specifically designed for taxi drivers in Kenya who have limited access to traditional financial services.
This initiative allows Bolt driver partners, who often struggle to secure loans from local banks, to establish credit and receive financing to purchase vehicles. Drivers who meet specific criteria will benefit from lower loan down payments and performance-based incentives.
