Bolt diversifies revenue stream, launches car rental feature on its App

Ride-hailing company, Bolt, announced on Tuesday that it has launched a car rental service in Europe as it looks to diversify its revenue streams.

With the new car-sharing service, Bolt Drive, the leading European mobility platform said its customers will now be able to rent a car for short periods using the Bolt app.

Bolt is the first mobility platform in Europe to offer carsharing, ride-hailing and micromobility with scooters and electric bikes in one app.

By enabling customers to quickly and conveniently rent a car at the tap of a button, Bolt allows them to be less dependent on personal cars and encourages the use of alternative modes of transport for short-distance trips.

“Personal cars are the primary cause of problems in urban transport. They are responsible for traffic, environmental emissions and taking up city space. Bolt’s mission is to help people give up their cars by providing a better alternative,” Markus Villig, CEO at Bolt, said.

Starting with a pilot in its home market, Estonia, Bolt said it will invest €20 million ($24 million) in launching Bolt Drive in Europe this year. According to the company, Bolt Drive will launch in several other markets if the Tallinn pilot is successful.

Previously known as Taxify, Bolt, earlier this year, received €20M from International Finance Corporation (IFC) to expand its mobility services in emerging markets.

According to Villig, for people to switch from ownership to on-demand transport, there is a need to offer a more convenient, affordable and environmentally sustainable option for every distance.

“We are already doing this for short and medium distance trips. Bolt Drive now covers the rest of the use cases, whether it’s a trip to a shopping mall or a weekend getaway. Our customers will have access to a car at any time, from the same app they already use for scooters, ebikes and ride-hailing,” he said.

Explaining how Bolt Drive works, the ride-hailing company said it is a free-floating car-sharing service, which allows customers to see the vehicles nearest to them on a map and book a car using the Bolt app. They can start the ride by unlocking a car with a mobile phone and finish it anywhere in the city, within an area indicated in the app. Users do not have to pay for parking or fuel.

The pilot will feature 500 vehicles including models such as the Toyota Yaris, Volkswagen Golf and Skoda Scala, as well as bigger cars like the Toyota CHR, Volkswagen Troc and Skoda Kamiq. There will also be electric cars like the Volkswagen ID.3 and premium cars like the Volkswagen Arteon.

Costs will vary depending on the car that is rented. For a Toyota Yaris, for example, the cost will be around 0.07 euros per minute (with an hourly cap of 3.90 euros) and 0.15 euros per km. That means the price of renting a Toyota Yaris for two hours and driving it 10 km would be 9.30 euros. Users do not have to pay for parking or fuel.