The EU is backing taxi app Bolt to help it compete with Uber
The European Investment Bank, or EIB, has invested in Bolt through a venture loan, which is used as an alternative to taking equity in a start-up to avoid diluting existing shareholders’ ownership.
Tallinn, Estonia-based Bolt is one of several firms looking to chip away at Uber’s dominance in the ride-hailing space. Founded in 2013, the firm was initially called Taxify but has since changed its branding to offer more services like scooter sharing and food delivery. It currently has 30 million users in 150 cities across Europe and Africa.
The strategic financing from the EIB will help Bolt ramp up spending on research and development to make its services safer and more sustainable while also maintaining operational efficiency, Bolt and the EIB said in a joint statement Thursday.
That also means investing in Bolt’s main line of business, ride-hailing, as well as food delivery, which it added to its platform last year. Both services are key to the company’s bid to take on Uber, its Silicon Valley competitor. bolt app eu
Bolt VS Uber
Bolt, as a European company, offers a strong local presence and understanding of the European market, which can translate to tailored services and features. Both Bolt and Uber share similarities in their core business models:
Similarities:
- Ride-hailing platforms: Both connect riders with drivers through their apps, offering convenient and on-demand transportation.
- Global reach: While Bolt initially focused on Europe, both companies now operate in numerous cities worldwide.
- Diverse services: Beyond ride-hailing, both have expanded into other areas like food delivery (Bolt Food, Uber Eats) and other transportation options.
Differences:
- Pricing: Bolt often positions itself as a more affordable option compared to Uber, although prices can vary depending on location and demand.
- Driver focus: Bolt emphasizes its commitment to driver well-being, offering a higher share of earnings to drivers in some markets.
- Market presence: Uber generally has a larger global footprint and a wider range of services compared to Bolt.
- Brand image: Uber is a more established brand with a longer history, while Bolt is a newer player known for its focus on affordability and local relevance.
Overall, both companies provide similar services with distinct approaches to pricing, driver relations, and market focus.