MARKET DRIVERS

Sam Raciti, Bolt’s Regional Manager for Western Europe, explains how competition in ride-hailing is leading to higher earnings for drivers and better value for customers.

As an Australian living in Oxfordshire working for an Estonian company whose biggest market is the UK, I know that Britain is a welcoming home for any global business. It’s a real free market and it’s allowing the UK’s ride-hailing sector to thrive.

The crucial ingredients for success in ride-hailing are drivers. They are free to choose which apps they drive with (most use more than one) and we need their loyalty to meet passenger demand. Bolt offers some of the lowest commission rates in the UK (10% for electric vehicles compared to Uber’s 25%) so drivers can make more money. We’re proud that the growing number of drivers using Bolt earn an average of £19.60 per hour, far more than the National Living Wage. Drivers are not required to accept trips and they can choose which routes they take.

This recipe is working; as more drivers have joined us, new customers have benefitted from lower fares and greater availability. Bolt has now expanded to eight UK cities with more to come.

Healthy Competition

Uber has had no real ride-hailing competitors in the UK for many years. During that time it exercised direct control over drivers and charged higher commission rates than the industry norm. Understandably many drivers have switched.

Uber has now lost a case in the Supreme Court and consequently decided to introduce a new driver offer which it says its competitors must follow. Uber took advantage of drivers instead of supporting them and now wants the whole sector to pay for their mistake. It’s the same high commission model albeit with some ‘on trip’ pension contributions and holiday pay.

Bolt drivers say they don’t want this; well over 60% said they preferred more money upfront. They have a choice over who they earn with, and if Bolt’s offer is no longer market leading, then they can move with a swipe of their phone.

If Uber is allowed to set the rules for the sector it will be much harder for companies like Bolt to compete. The barriers to entry will become higher, benefitting the company with the most scale. Ultimately drivers will suffer.

Improving Cities

As competition in ride-hailing grows, drivers earn more and prices become more competitive. As the amount of drivers increases, more customers feel comfortable ditching their car to use ondemand transport. Bolt is eager to bring its super app to every UK city; providing ridehailing, e-scooters, car sharing and food delivery all in one place. We know this will help reduce congestion and benefit the environment. But we can’t build a unique business if we’re forced to copy the biggest player. We hope that decision-makers see through the rhetoric and recognise what’s happening; Uber is using its market dominance to force an adverse business model on it’s competitors. We can share feedback from drivers should it be of interest.

On behalf of all the innovative tech start-ups in the UK I wish you a fantastic Conference. I hope you return to work renewed, refreshed and ready to show your support for competition in the gig economy.