Recently, Bolt introduced a bidding system to boost its services in Nigeria and ensure that both drivers and riders negotiate the fare charges. According to Femi Adeyemo, Bolt’s communication manager, it is intended to increase the earnings of drivers without affecting the standard commission on every trip.
Originally, Bolt set a base rate for rides and prices varied depending on supply and demand, during high demand being higher. This model adopted by competitors such as Uber has also been criticized for the fact that it is rigid and does not allow drivers to directly negotiate with their clients and more so at penetrating both drivers and riders.
The newly introduced bidding model eradicates this issue because the drivers set a rational price for their services. However, this approach comes with its own drawbacks that include issues to do with fairness and equality in the pricing model.
Having entered the Nigerian market before other competitors such as inDrive, Bolt’s market share has gradually increased. InDrive, founded in 2019 in Lagos, has so far reached 15 cities by July 2023, revealing the intensity of competition between the ride-hailing services in the area.
Before this new system, driver-partners in Nigeria were using the Bolt app’s Bolt Rewards programme which began in March 2024 with fuel and insurance and other promotions. This was aimed at assisting the drivers especially since fuel costs increased following the elimination of fuel subsidies in early 2023.
The company has also increased and expanded its incentive offering such as for long pickups and many others. This comes as Bolt continues to explore ways of assisting drivers to reduce operational expenses and enhance the availability of its services.
An especially memorable campaign that Bolt Nigeria initiated in December was the ₦10,000 fuel subsidy bonus for drivers in Lagos and Abuja. This was in the form of a bonus intended to offset the impact of the high fuel prices on the consumers until the end of the year.
Bolt’s introduction of the bidding system reflects its commitment to adapting to market needs and supporting its driver-partners, while also enhancing the overall rider experience.
