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Bolt launches in Cairo and undercuts Uber with 15% commission

March 4, 2024
in Technology
Bolt launches in Cairo and undercuts Uber with 15% commission
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Bolt, the global ride-hailing company, has launched in Cairo and will compete with Uber, InDriver and Careem in its second foray into North Africa after expanding to Tunis in 2019. 

The Estonian ride-hailing giant will hope to win with its pricing strategy. It will waive drivers its standard 15% commission for drivers (Uber and Careem charge 22-33%) and give riders 50% off their trips for the next six months. Bolt absorbs the discounts it gives customers and pays drivers the total amount earned during a trip. 

“Egypt is an important market for our entry beyond merely boosting driver revenues; we aim to ignite demand through competitive pricing,” said Haitham Mansour, Bolt Egypt Country Manager.  “By keeping our commissions substantially lower than our counterparts, we ensure drivers earn more while presenting customers with appealing service fees.”

Bolt’s entry into Egypt marks its 15th African market, following an expansion spree over the last few months. During this time, it has primarily focused on the Southern Africa market after entering Zambia, Zimbabwe, and Botswana, and waived driver commission in those markets for six months. 

Uber is currently the most popular ride-hailing app in Cairo but is considered pricey. Careem is similar in price but offers occasional discounts. inDriver and DiDi are newer, vying for the budget-conscious market with offers and discounts.

In February 2023, Bolt committed to investing more than $500 million in Africa by the end of 2024. This investment aimed to expand Bolt’s services across the continent and create job opportunities. 

The company is also in the process of addressing a crisis with some of its drivers in select markets who accuse the company of using underhand tactics that reduce their income.

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