European startup Bolt has expanded to Nepal and launched a ride-hailing service in the country. The company’s previous market expansion was a 2020 launch in Thailand.
On Wednesday, Bolt announced a trial of its on-demand ride-hailing service in Kathmandu, Nepal’s capital. The startup has launched with over 400 local his drivers.
With a per capita disposable income of $1,683, Nepal already has two foreign companies operating in the country’s ride-hailing market. InDrive, headquartered in Mountain View, and Pathao, Bangladesh. However, Bolt has announced that it will not charge partners fees to attract existing ride-hailing drivers to its platform for at least the next six months. It also states that the driver can receive a 15% lower service fee than other competitors on the market.
Similar to the experience available to customers in Europe and Africa, Bolt will enable riders in Nepal to take advantage of safety features such as a dedicated SOS button and a “Share My Ride” feature for real-time trip sharing. The Bolt app will also allow both riders and drivers to access in-app calls and messages without revealing their phone number.
Nepal’s ride-hailing market is confined to the country’s largest urban economy, the capital, with strong demand from locals and tourists. Domestic start-ups such as Tootle and Sahara are also entering the market alongside InDrive and Pathao. Nonetheless, Bolt sees a market opportunity as it continues to launch its services in the country.
“This is far from our smallest and far from our largest market,” Bolt president Jevgeni Kabanov said in an interview with TechCrunch. “We are basically looking for markets that we believe we can serve better.”
He added that he wants the startup to become the most affordable option for everyone living in Kathmandu.
Market experts and investors in the Asian ride-hailing industry find it difficult to get funding from Nepal. According to Kabanov, Bolt localizes its business to the actual specifications of the country, and does the necessary work, whether it’s complying with local regulations or dealing with local payment methods and taxation. I am ready to do it.
Bolt currently has no major investments in Nepal and coordinates its operations from its headquarters in Estonia. Nonetheless, the startup may expand operations in the country after seeing early growth in adoption among drivers and riders, and may eventually launch in Nepal as well. His other two lines of business are grocery and food delivery.
“As we grow the ride-hailing industry, it is very likely that in the medium to long term we will also start food delivery and grocery delivery in general,” Kabanov said.
Bolt’s launch in Nepal is opportunistic because the startup can count on an existing supply of drivers to launch its ride-hailing business. You can also understand better. However, the startup has no immediate plans to expand into larger markets, including India.
When asked about plans to launch in India, Kabanov said, “We will make sure we monitor all major markets, do research, see what the competitive landscape is and what are the opportunities to improve our service offerings. I’m trying to understand
Founded in August 2013, Bolt (previously known as mTakso and Taxify) has nearly 100 million customers in 45 countries and 500 cities across Europe and Africa. The startup has raised over €1 billion from investors including Sequoia, his IFC at the World Bank and the European Investment Bank. It is currently valued at €7.6 billion.
