Bolt, the Estonian startup founded in 2013 by 19-year-old Markus Vilig, has become a European challenger to Uber, valued at €7.4bn at its latest fundraising in 2022. The company operates in over 50 countries across Europe, Africa, Asia, and Latin and North America, and claims to be Europe’s first mobility super-app, combining ride-hailing with services including car and scooter sharing as well as food and grocery delivery.
According to Luiz Fittipaldi, who led Bolt’s global strategy planning, the company looks for markets with a large size and growth potential, adequate supply of drivers, and limited competition. A highly fragmented market is not ideal, as it reduces the potential market share and access to drivers.
Bolt’s strategy differs depending on the stage of each individual market. In early-stage markets, the company focuses on creating a good value proposition for drivers and competitive pricing for customers. In mature markets, the company aims to expand the market itself by bringing in new customers, rather than taking away market share from rivals.
Key Strategies:
• Creating a good value proposition for drivers and competitive pricing for customers
• Expanding the market by bringing in new customers
• Catering to different needs, such as pet-friendly vehicles or cars with child seats
• Shifting consumer behavior towards a transportation model that depends less on private cars
Regulation is a major factor impacting both the attractiveness of new markets and the potential growth in existing ones. Bolt must navigate regulatory requirements, such as the type of licenses needed for drivers, and the power of taxi associations and legislation that protects them.