Mobility startups in Africa are in for a rollercoaster ride as a leading player in the African digital mobility sector, Estonia-headquartered Bolt (formerly Taxify) has just raised another $20 million to tackle its African market.
Markus Villig, CEO of Bolt
“Half of Bolt’s business is in Africa, and this investment will allow us to stimulate entrepreneurship and advance drivers and passengers by transforming transportation on the continent,” said Gareth Taylor, regional director of Bolt in southern Africa.
The round was led by the International Finance Corporation.
Barely 3 months ago, Bolt raised $182m from D1 Capital Partners with participation also from Darsana Capital Partners. The funding added to the $109 million it raised in May, 2020.
The latest investment brings the startup’s total financing to more than $534.9 million, and would be used to finance its African market operations.
Launched in 2013 by Martin and Markus Villig under the name Taxify, Bolt is developing numerous mobility services (VTC, motorcycle taxis and even free-floating electric scooters), in more than 200 cities across 40 countries in Europe and Africa. The startup currently serves 50 million customers using its services.
Faced with the Covid-19 pandemic and the ensuing containment measures, the startup has stepped up its meal delivery service, Bolt Food, now available in 12 countries.
In the African mobility market, Bolt is a major player
Rather concentrated in Eastern Europe and Africa, Bolt is gaining ground in markets where its competitor Uber is less present.
The Tallinn-based startup has also launched a new service for merchants. Called Business Delivery, it offers restaurants, supermarkets and florists a delivery service to cover the last kilometer and manage returns of items, using the Bolt network of drivers and couriers.
To comply with social distancing measures, the startup has also launched a new category of hybrid bikes equipped with dividing walls between the passenger and driver seats.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Mobility startups in Africa are in for a rollercoaster ride as a leading player in the African digital mobility sector, Estonia-headquartered Bolt (formerly Taxify) has just raised another $182 million to tackle its African market.
Markus Villig, CEO of Bolt
“This round was the first time we raised with most of the previous round still in the bank, despite the pressures of Covid” he said. “This shows the frugality of the company. Due to lockdowns, we were not as aggressive as we would have liked to be, so financially we are now in a very good position for 2021,” comments 25-year-old Markus Villig, CEO of Bolt.
Here Is What You Need To Know
The round is being led by D1 Capital Partners with participation also from Darsana Capital Partners.
Barely 7 months ago in May, Bolt raised $109 million to tackle its African market, putting the company at a valuation of $1.9 billion
The latest investment brings the startup’s total financing to more than $511 million.
Launched in 2013 by Martin and Markus Villig under the name Taxify, Bolt is developing numerous mobility services (VTC, motorcycle taxis and even free-floating electric scooters), in more than 200 cities across 40 countries in Europe and Africa. The startup currently serves 50 million customers using its services.
Faced with the Covid-19 pandemic and the ensuing containment measures, the startup has stepped up its meal delivery service, Bolt Food, now available in 12 countries.
Rather concentrated in Eastern Europe and Africa, Bolt is gaining ground in markets where its competitor Uber is less present.
The Tallinn-based startup has also launched a new service for merchants. Called Business Delivery, it offers restaurants, supermarkets and florists a delivery service to cover the last kilometer and manage returns of items, using the Bolt network of drivers and couriers.
To comply with social distancing measures, the startup has also launched a new category of hybrid bikes equipped with dividing walls between the passenger and driver seats.
“We are excited to partner with Bolt as they continue to build a market-leading mobility platform across Europe and Africa,” said Dan Sundheim, founder of D1 Capital, in a statement. “The team has executed incredibly well during a challenging year and continues to provide millions of users with safety, flexibility and great value. We are optimistic about the growth opportunity ahead for Bolt after the COVID-19 pandemic and look forward to supporting the team as they invest in innovation over the coming years.”
In the African mobility market, Bolt is a major player
A Look At Markus Villig, CEO of Bolt, Who At Just 19, Started Of One Of The Leading Mobility Startups Focused Mostly On Eastern Europe And Africa.
According to CNBC News, at age 19, Villig dropped out of college after just one semester studying computer science at the University of Tartu, in Estonia, as his ride-hailing app, Taxify (now known as Bolt), began to take off.
Villig started the business with a 5,000 euro ($5,565) loan from his family to build a prototype of the app, the summer after graduating from high school.
He was inspired by Skype, which was founded in his home country of Estonia in 2004, showing a technology business “could be launched from anywhere.”
“I realized that tech is one of those industries where you can have huge leverage in the fact that you can accomplish big things with a very small team,” he told CNBC.
Villig said he remained disciplined with business costs by avoiding “hiring loads of people or doing expensive marketing campaigns.”
In fact, Villig took to the streets himself in Estonia’s capital Tallinn to recruit taxi drivers in the early days of the business.
“Ultimately it comes down to being extremely customer focused and frugal,” he said. “This is an industry where customers really care if they get good value for their money,” he adds. “So if you can offer customers 20% better pricing or you can make sure the drivers take 20% more on every ride then that really pays.”
Finding a focus is Villig’s biggest tip for anyone launching a start-up.
“As an entrepreneur you sometimes get thousands of ideas that seem great and you want to do them all, but ultimately you can only do a few things really well,” he says, explaining that this was why Bolt solely focused on ride-hailing for its first five years in operation.
About rebranding earlier in 2019 from Taxify to Bolt, to reflect its branching out into other areas of mobility, Villig has this to say:
“My advice to young entrepreneurs would be to choose a name that reflects the vision you have for your business and not to be afraid to change that name if your vision gets bigger.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Mobility startups in Africa are in for a rollercoaster ride as a leading player in the African digital mobility sector, Estonia-headquartered Bolt (formerly Taxify) have just raised $109 million to tackle its African market.
Markus Villig, CEO of Bolt
“While the crisis has temporarily changed the way we travel, long-term trends that favor mobility on demand, such as the decrease in the number of personal cars and the switch to greener means of transport, continue to develop.” accentuate, ” comments 25-year-old Markus Villig, CEO of Bolt.
Here Is What You Need To Know
The investment came from Naya Capital Management, and brings the startup’s total financing to more than $329 million.
Launched in 2013 by Martin and Markus Villig under the name Taxify, Bolt is developing numerous mobility services (VTC, motorcycle taxis and even free-floatting electric scooters), in more than 150 cities in Europe and Africa.
Faced with the Covid-19 pandemic and the ensuing containment measures, the startup has stepped up its meal delivery service, Bolt Food, now available in 12 countries.
Rather concentrated in Eastern Europe and Africa, Bolt is gaining ground in markets where its competitor Uber is less present.
The Tallinn-based startup has also launched a new service for merchants. Called Business Delivery, it offers restaurants, supermarkets and florists a delivery service to cover the last kilometer and manage returns of items, using the Bolt network of drivers and couriers.
To comply with social distancing measures, the startup has also launched a new category of hybrid bikes equipped with dividing walls between the passenger and driver seats.
In the African mobility market, Bolt is a major player
A Look At Markus Villig, CEO of Bolt, Who At Just 19, Started Of One Of The Leading Mobility Startups Focused Mostly On Eastern Europe And Africa.
According to CNBC News, at age 19, Villig dropped out of college after just one semester studying computer science at the University of Tartu, in Estonia, as his ride-hailing app, Taxify (now known as Bolt), began to take off.
Villig started the business with a 5,000 euro ($5,565) loan from his family to build a prototype of the app, the summer after graduating from high school.
He was inspired by Skype, which was founded in his home country of Estonia in 2004, showing a technology business “could be launched from anywhere.”
“I realized that tech is one of those industries where you can have huge leverage in the fact that you can accomplish big things with a very small team,” he told CNBC.
Villig said he remained disciplined with business costs by avoiding “hiring loads of people or doing expensive marketing campaigns.”
In fact, Villig took to the streets himself in Estonia’s capital Tallinn to recruit taxi drivers in the early days of the business.
“Ultimately it comes down to being extremely customer focused and frugal,” he said. “This is an industry where customers really care if they get good value for their money,” he adds. “So if you can offer customers 20% better pricing or you can make sure the drivers take 20% more on every ride then that really pays.”
Finding a focus is Villig’s biggest tip for anyone launching a start-up.
“As an entrepreneur you sometimes get thousands of ideas that seem great and you want to do them all, but ultimately you can only do a few things really well,” he says, explaining that this was why Bolt solely focused on ride-hailing for its first five years in operation.
About rebranding earlier in 2019 from Taxify to Bolt, to reflect its branching out into other areas of mobility, Villig has this to say:
“My advice to young entrepreneurs would be to choose a name that reflects the vision you have for your business and not to be afraid to change that name if your vision gets bigger.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
The heat is getting intense. Anytime soon, car-hailing companies (such as Uber, Bolt and others) in South Africa and in Nigeria’s most populated city, Lagos, may be in for a tougher set of laws which will regulate their operations.
Fikile Mbalula
‘‘UBER, Taxify, BOLT and others will be regulated by Government.
These amendments seek to provide for e-hailing services regulation, also to empower provinces to undertake new contracts which was absent in the principal Act.
Under South Africa’s National Land Transport Amendment Bill, which has been passed in parliament and sent to South Africa’s president for assent, drivers on car-hailing platforms like Uber and Bolt who do not have operating licences may incur a fine as much as R100 000 ($6000) for those platforms (Uber, Bolt and others).
In Nigerian, under a new set of regulations, which should have been in place from March 1, 2020 (but for some intense lobbying) drivers on ride-hailing platforms are required to have LASDRI card and a driver badge issued by the Department of Public Transport and Commuter Services of the Ministry of Transport.
In Ghana, from Uber to Bolt to Yango, drivers who rely on ride-hailing to sustain their livelihood would start paying a mandatory GHC 60 ($11) annual fees for ride-hailing platforms in the country, in addition to their cars undergoing roadworthy tests every six months.
Image for: South Africa issues notice to regulate Uber, others
Here Are The New Regulations In Details
South Africa
Under Section 66A of the Amendment Bill, e-hailing services are now expressly mandated to protect consumers using their platforms. According to the new law, e-hailing or technology-enabled ride-hailing companies must — (a) have the facility to estimate fares and distances, taking into account distance and time, and must communicate the estimate to passengers in advance electronically; (b) communicate the final fare to the passenger or passengers at the conclusion of the trip electronically, and (c) provide the prescribed details of the driver of the vehicle to the passenger or passengers electronically.
Where a person conducts a business providing an e-hailing software application, that person — (a) may not permit an operator to use that application for a vehicle for which the operator does not hold a valid operating licence or permit for the vehicle, or whose operating licence or permit has lapsed or been cancelled, and (b) must disconnect the e-hailing application immediately and keep it disconnected until a valid operating licence has been obtained for the vehicle.
Consequently,operating an e-hailing service without the proper operating license or permit could result in a fine not exceeding R100 000 or a period of imprisonment not exceeding two years.
The law also empowers provincial regulatory authorities in South Africa to withdraw or suspend an operating licence from an operator which has contravened the National Land Transport Act or the Roads Traffic Act.
Image for: These are examples of ride-sharing startups in Africa, (including Uber) the laws seek to regulate
Nigeria: Lagos
Although Nigeria as a country is still silent on regulating the activities of ride-hailing companies, Lagos, the most populated city in the country is reportedly mulling a set of local regulations targeting car-hailing companies operating within the city. As reported by local news media:
Under the proposed new regulations, drivers on ride-hailing platforms are required to have LASDRI card and a driver badge issued by the Department of Public Transport and Commuter Services of the Ministry of Transport.
The vehicles on such platforms must also have permits issued by the Lagos State Motor Vehicle Administration Agency and be fitted with a tag to be issued by the said department of transport.
The new regulations will also mandate third-party operators like Uber and Bolt to pay N10 million naira ($27k) and an annual renewal fee of N5 million ($13.5k) if they have less than 1000 drivers.
Third-party operators that have more than 1000 drivers will pay N25 million ($67.8k) licensing fee and N10 million annual renewal fee.
Operators who directly own their cars and employ their drivers will pay only the license fee of N5 million if such operators have below 50 drivers.
Those who have more than 50 drivers will pay N10 million for the operating license.
Under the new regulation, the state government will also earn 10% on the fee of each trip.
The new regulation (if it ever comes into effect) is coming on the heels of the Lagos state government ban on commercial tricycles and motorcycles, popularly known as okada from operating in six local governments — Apapa, Eti-Osa, Ikeja, Lagos Island, Lagos Mainland and Surulere.
Image for: Comparing Africa ‘s attempt to regulate Uber, others with the rest of the world. Source: — Daily Mail
Ghana
In Ghana, drivers who rely on ride-hailing to sustain their livelihood would start paying a mandatory GHC 60 ($11) annual fees for ride-hailing platforms in the country, in addition to their cars undergoing roadworthy tests every six months. Ghana’s Driver and Vehicle Licensing Authority (DVLA), which imposed the GH¢60 ($11) annual fee noted that the guidelines will cover the current ride-hailing platforms like Uber, Bolt, and Yango and will also cover companies who intend to operate ride-hailing platforms in Ghana in the future.
The fee is being imposed as part of new guidelines introduced by the Ministry of Transport, National Road Safety Commission, and the MTTD of Ghana Police Service.
In addition to the annual fee, owners of vehicles who use ride-hailing platforms will have to obtain a registration certificate at the Digital Transport Center at DVLA’s Headquarters in Cantonments for “verification and authentication.”
The DVLA also stated that ride-hailing cars must undergo roadworthy examinations and certifications every six months, making it twice a year roadworthy renewal.
Under the new guidelines, only vehicle owners can be represented by for purposes of such examinations and certifications. The representative must however go along with a duly signed Power of Attorney document as well as a valid national ID document.
Thereafter, a special sticker will be issued to vehicles that have completed this process to be pasted “on the windscreen at all times.”
On the other hand, drivers would have to be present at the Digital Transport Center themselves for their verification and authentication.
“Unlike in the case of the vehicle owner, the driver must be physically present for this activity…..Drivers must ensure that, at all times, they possess a valid Driver’s Licence,” Ghana’s Driver and Vehicle Licensing Authority (DVLA) noted in a statement.
The Authority also added that companies that operate the digital transport platforms must only work with drivers who have been verified by the DVLA.
“Once you are signed on, only verified and approved vehicles and drivers must be enrolled on your platform…The DVLA data system becomes the only valid source for verifying the authenticity of a driver’s license or a vehicle’s registration. Submit quarterly reports in the form as agreed with the Authority.”
The Bottom Line
Regulating ride-hailing companies such as Uber, Bolt and others in Africa is a step in the right direction provided such regulations only serve to establish a standard framework for the operations of those companies, and not to impose excessive levies and taxes or create monopolies to discourage innovation as it presently appears to be the case in the city of Lagos, Nigeria.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com
