Ride-hailing platform Bolt is exploring a private chauffeur service and other high-end categories for business professionals who want a luxury experience in South Africa.
Like its rival, Uber, Bolt offers e-hailing services across various price points, from low end to high end. Both companies have benefitted mainly from middle-income consumers looking for a more reliable form of daily transport beyond the typical public options.
Having firmly established e-hailing as a mainstream transport option, competition has moved to the lower end of the market, where work is being done to capture price-sensitive customers with cheaper options.
Until recently, Bolt had been leading this charge, recording its strongest growth in the lower-priced segments, such as “Bolt Lite”, which uses Bajaj Qute, a compact, fuel-efficient quadricycle (not a car) designed for affordable, eco-friendly first/last-mile transport.
Uber has since launched two offerings in response, first with the motorcycle-based “Uber Moto” and most recently with “Uber Electric”, which uses light electric vehicles for cheaper rides.
The third player, InDrive, has centred its strategy on affordability. It uses a peer-to-peer fare-negotiation system in which passengers propose a price and drivers can accept, decline or make a counter-offer, rather than relying on fixed, algorithm-driven pricing like its competitors. The company argues this “bid-and-accept” model gives both sides greater flexibility and control.
Even then, Bolt South Africa’s Simo Kalajdzic told Business Day that the Estonian company sees value in expanding its offering in the high-end market.
He highlights that Bolt’s premium offerings are part of a strategic revamp to better serve professional and high-value passengers while ensuring top-rated drivers are fairly compensated.
“I don’t think we’ve reached the peak [of e-hailing] at all. And if you just look at user needs, these continue to evolve. It’s not only about getting the most affordable option that’s just going to get you from point A to point B, but people also are looking for experiences and are willing to pay for that experience,” Kalajdzic said.
“That’s where options like Bolt Comfort or Bolt Premium come into play. In addition, we are also exploring private chauffeur services where you’ll be picked up in a very exclusive type of vehicle by a well-suited driver who will open the door for you and take you to where you need to get to.”
The company is looking to partner with existing providers for chauffeur services, with an integration to Bolt’s platform.
“Obviously this will come at a much higher premium but is designed for somebody who’s willing to pay that premium for the experience.”
In South Africa, Bolt has about 40,000 drivers and reports more than 1.4-million users. Kalajdzic said Bolt has completed 400-million trips since 2016 and operates in 22 cities in the country.
Ultimately, Kalajdzic said that while the mass market remains the volume driver for Bolt, the introduction of a private chauffeur tier addresses a growing demand for a dedicated and luxury-orientated transport solution in South Africa.
Like others in the space, the company has moved beyond ride-hailing into food delivery, parcel delivery and freight for small businesses.
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