{"id":15471,"date":"2024-08-12T07:00:21","date_gmt":"2024-08-12T07:00:21","guid":{"rendered":"http:\/\/TheNextWeb=1409222"},"modified":"2024-08-12T07:00:21","modified_gmt":"2024-08-12T07:00:21","slug":"inside-bolts-expansion-strategy-across-50-markets","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=15471","title":{"rendered":"Inside Bolt\u2019s expansion strategy across 50+ markets"},"content":{"rendered":"\n
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In the business world (and beyond) everybody loves the success story of an underdog. Estonia\u2019s Bolt is one such example.<\/p>\n

The startup<\/a> was founded in 2013 by then 19-year-old Markus Vilig with \u20ac5,000 in his pocket. Since then, it has successfully become the European challenger to Uber, valued at \u20ac7.4bn at its latest fundraising in 2022.<\/p>\n

The company also claims to be Europe\u2019s first mobility<\/a> super-app, combining ride-hailing with services including car and scooter sharing as well as food and grocery delivery.<\/p>\n

Bolt now operates in over 50 countries across its home continent, Africa, Asia, and Latin and North America.<\/p>\n

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But what lies behind the startup\u2019s growth and expansion strategy, especially in the ride-hailing segment where it is particularly strong?<\/p>\n

\u201cWhen launching into a new market, the first thing to look into is what\u2019s the size of this market and how much it can grow,\u201d Luiz Fittipaldi, who led the company\u2019s global strategy planning between June 2023 and July 2024, tells TNW.<\/p>\n

Adequate supply of drivers and existing competition are also key factors impacting a market\u2019s attractiveness.<\/p>\n

A highly fragmented market doesn\u2019t present a beneficial opportunity, according to Fittipaldi. That\u2019s because the presence of multiple players reduces the potential market share as well as access to drivers who have various apps to choose from.<\/p>\n

Instead, tapping into a monopolised market is significantly more favourable.<\/p>\n

\u201cWhen you have a single player operating in the market, they usually don\u2019t provide the best service because there is no one challenging them.\u201d This leaves room for competing services that aim for faster vehicle arrival times (ETA) and greater affordability.<\/p>\n

Early-stage vs mature markets<\/h2>\n

When it comes to driving growth, Bolt\u2019s strategy differs depending on the stage of each individual market.<\/p>\n

For entrance into new, early-stage markets the company focuses on creating a good value proposition for drivers and competitive pricing for customers. It\u2019s also about compensating an initially lower service quality \u2014 until there\u2019s enough driver supply to ensure fast arrival times \u2014 with affordability, in order to attract riders.<\/p>\n

\u201cThe network effect is how we build up,\u201d Fittipaldi says. The idea is simple: more riders attract more drivers and more drivers improve the service for riders. In turn, higher service quality attracts more riders, which engages more drivers.<\/p>\n

When it comes to more mature markets where Bolt is operating in, competitive pricing and ETA are also key targets for achieving growth.<\/p>\n

But according to Fittipaldi, the company\u2019s primary aim isn\u2019t taking away a part from a rival\u2019s market share. It\u2019s expanding the market itself by bringing in new customers.<\/p>\n

\u201cIn this case, even if we keep the same market share, we can grow by three to five times in about five years.\u201d<\/p>\n

One way to attract new customers is catering to different needs, such as pet-friendly vehicles or cars with child seats.<\/p>\n

The biggest potential, however, lies in shifting consumer behaviour towards a transportation model that depends less on private cars.<\/p>\n

The environmental benefit is only one part of the equation, Fittipaldi says. The other part is offering services that compete financially with car ownership, especially for consumers with limited car use.<\/p>\n

This means providing transportation options \u2014 from ride-hailing to car rental for longer trips, and scooter sharing for short distances \u2014 that can be more affordable in the long term than the accumulated costs of car maintenance, insurance, and fueling.<\/p>\n

Regulation<\/h2>\n

For companies like Bolt, regulation is a major factor impacting both the attractiveness of new markets and the potential growth in existing ones.<\/p>\n

\u201cIt comes down to assessing whether existing regulation can enable the supply of drivers, and whether the investments needed to comply with regulatory requirements is worth it in the long run,\u201d Fittipaldi says.<\/p>\n

For the ride-hailing segment, one regulatory parameter is the type of licences needed for drivers \u2014 alongside the power of taxi associations and the legislation that protects them.<\/p>\n

In the UK, for example, there are more favourable conditions. To sign up on the app, drivers can have either a taxi licence or private hire vehicle (PHV) licence \u2014 which allows individuals outside of the taxi profession to participate in the service.<\/p>\n

The situation is different in Cyprus, where only taxi licence holders are eligible.<\/p>\n

Similarly in Greece, where Bolt doesn\u2019t operate, ride-hailing apps are only available to taxi drivers, following a series of protests<\/a> from taxi unions causing Uber to suspend its UberX service, manned by private drivers.<\/p>\n

Meanwhile, Bolt will also have to navigate upcoming rules on gig worker rights in its home markets.<\/p>\n

The so-called EU platform workers directive<\/a> addresses concerns about the misclassification of gig workers as independent contractors, which can deprive them of labour rights. It aims to provide those misclassified as self-employed with full-employment status and benefits \u2014 increasing demands and costs for platforms like Bolt.<\/p>\n

The legislation is now pending approval by the European Council. Estonia has reportedly<\/a> been among the EU countries opposing the change, calling for less comprehensive rules.<\/p>\n

According to Fittipaldi, regulation is one of the biggest challenges Bolt is facing in the European market.<\/p>\n

\u201cBut Europe is the region that is the closest to reshaping cities and claiming space from private cars to give it back to people,\u201d he says.<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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