Grace Ashiru
The leading ride-hailing and instant delivery company recently announced that its Bolt Food service will cease operations in South Africa on December 8, 2023, and Nigeria on December 7, 2023. This move is part of the company’s larger strategy and comes despite a substantial increase in turnover, coupled with ongoing operational losses.
In the fiscal year 2022, Bolt Technology witnessed a remarkable 152% jump in turnover, reaching €1.26 billion. This impressive growth occurred even though the company incurred an operational loss of €72 million, representing a significant decrease in losses when viewed in a broader context.
Bolt, established a decade ago, has expanded its portfolio to encompass various services, including ride-hailing, e-scooter and car rentals, and a food delivery app, positioning it as one of Estonia’s nine unicorn companies.
According to ERR’s report, a substantial portion, approximately 80%, of Bolt’s revenue in 2022 was generated from its ride-hailing business, highlighting this as its primary area of strength.
Regarding geography, Europe’s contribution to the company’s sales revenue escalated from 70% in 2021 to 81% in 2022. Despite increased revenues in African countries where Bolt is active, their overall share in the company’s total revenue decreased.
Bolt’s 2022 financials also indicate a strategic shift in focus: about 80% of its sales revenue came from driving services, followed by 10% from rentals and 9% from food delivery.
The company experienced an 11% decrease in operating losses, amounting to €262.6 million, and a notable improvement in the operating profit margin.
Bolt’s decision to discontinue its food delivery service in South Africa and Nigeria represents a strategic move towards concentrating on its more lucrative segments.
Even with the closure of its food delivery arm, Bolt remains deeply invested in its other business areas in these regions, ensuring a commitment to providing top-notch services to its clients.
Bolt Food, launched in Lagos in October 2021, was introduced to tap into the flourishing food delivery market, competing with other services like Jumia Food and Gokada.
The termination of the service in South Africa will affect both customers and couriers, with Bolt focusing on facilitating a smooth transition for everyone involved.
