Bolt secures €628mn funding for transition to shared mobility

Bolt, a leading transportation platform, has recently secured a whopping $712 million in funding from rounds led by Sequoia Capital and Fidelity Management and Research Company. The funding marks a significant step for Bolt as it aims to further scale its existing products and accelerate the transition from traditional car ownership to shared mobility in cities. Paddy Partridge, Bolt's Regional Director for Africa, joined CNBC Africa to discuss the details of this substantial funding round. The company has witnessed remarkable growth over the past year despite the challenges posed by the Covid-19 pandemic. The funding injection will be pivotal in the expansion and enhancement of Bolt's offerings. Bolt introduced two new product types, Bolt Drive and Bolt Market, in the previous year. Bolt Drive focuses on car rentals, while Bolt Market offers 50-minute grocery delivery services. These new products have been rolled out in various European markets to complement Bolt's core ride-hailing service, food delivery, and rentals in micro-mobility, like electric scooters and bikes. The funding will be allocated to accelerating the growth of these initiatives. In Africa, Bolt's primary focus remains on expanding its core business lines across the seven markets where it is currently present, in addition to exploring opportunities in North and West Africa for new market launches. Bolt aims to address the growing demand in its core markets by improving driver earnings and vehicle access through heightened vehicle financing efforts. Furthermore, the company is committed to fostering environmental sustainability by increasing the number of electric vehicles operating on its platform. Bolt operates in highly competitive spaces such as food and grocery delivery and ride-hailing. Despite the fierce competition, Bolt believes that the diverse ecosystem it has developed with multiple service offerings creates a strong tapestry for customer retention. With over 100 million customers globally, Bolt leverages synergies across its services to provide a comprehensive transportation solution at competitive rates compared to traditional car ownership. Bolt's adaptable business model has proven successful in both emerging and developed markets. While initially targeting emerging markets with lower car ownership, Bolt has expanded its presence in developed economies like Western Europe. The company has capitalized on the trend of decreasing car ownership in these markets, leveraging its learnings to further penetrate competitive landscapes. Bolt's flexible approach and diverse service offerings have enabled it to thrive in varied market conditions. In ensuring driver satisfaction and retention, Bolt focuses on maintaining competitive earnings for its drivers. By offering low commissions, investing in rider discounts, and providing benefits like vehicle financing and fuel discounts, Bolt ensures that drivers on its platform earn respectable incomes. The company's driver-centric approach is vital in balancing competitive pricing and driver satisfaction. Bolt's services extend beyond cars to include motorbikes and e-bikes. While motorbikes and three-wheelers are prevalent in East Africa, electric bikes are utilized for food delivery services across the continent. Bolt has plans to introduce electric scooters in Africa, starting with Southern Africa in 2022. These efforts align with Bolt's commitment to providing eco-friendly transportation solutions in the region. The potential for electric scooters in Africa presents an exciting opportunity for Bolt's future growth and sustainability. With the recent funding infusion and strategic initiatives in place, Bolt is poised to lead the transition towards shared mobility and sustainable transportation solutions in cities across the globe.