Kenya, March 5 -- Bolt, a ride-hailing service in Kenya, saw its income drop by Ksh 1.27 billion in the year ending June 2024. This is a big decrease compared to last year when they made Ksh 3.27 billion.
The drop happened after they raised prices, faced rules from the government, and had unhappy customers. Many passengers decided to use other taxi services that took advantage of Bolt's struggles.
In October 2023, Bolt increased its minimum fares to between Ksh 200 and Ksh 250 for all types of rides.
They did this because drivers were frustrated with high fuel costs. However, many customers found the new prices too high and switched to other options.
Parliamentary documents show that Bolt earned Ksh 2.45 billion during this time. The company also faced problems with regulations, such as being accused of charging an illegal booking fee.
This led to issues with the National Transport and Safety Authority (NTSA) about renewing their license.
There were also more complaints about safety, which caused Bolt to remove over 5,000 drivers between May and November 2023.
The ride-hailing market is very competitive, with Bolt and Uber having over 70 percent of the market share.
The Kenya Revenue Authority (KRA) reported a 4 percent drop in taxes collected from ride-hailing companies, with income falling to Ksh 1.15 billion during this period.
Over the last eight years, Kenya's ride-hailing industry has grown as many people prefer using apps for rides rather than traditional taxis.
Lower fares and the ease of automatic pick-ups and drop-offs have increased demand. However, the recent price increases and issues with regulators have created uncertainty for both drivers and riders.
Published by HT Digital Content Services with permission from Bana Kenya.