In December of last year, Bolt Kenya introduced Bolt Market, integrating it into the existing Bolt Food app, as reported by Innovation Village. This initiative seeks to diversify Bolt’s services, grow its market share, and position itself as a reliable platform for convenient, on-demand grocery delivery. The company is taking a cautious approach by concentrating on one area before expanding its presence nationwide.
While grocery delivery in Nairobi is a smaller segment compared to food delivery, several players, including supermarket chains like Naivas and Carrefour, have ventured into this space with mixed results. Prior to COVID-19, in-person dining and in-store shopping were common in Kenya, with online purchases limited to early adopters in urban areas. The pandemic shifted consumer behavior, pushing retailers to adopt delivery models, partner with platforms, and innovate with options like same-day delivery driven by demand for convenience and safety.
As of 2023, 9.3% of Kenyans shop for food and groceries online, projected to reach 16.7% or 10.5 million consumers by 2027, due to the demand for convenience and efficient delivery services. Bolt Market seeks to diversify Bolt’s services beyond ride-hailing and compete in a market where speed and convenience are critical. This competitive environment has seen players like Jumia Food exit the market due to unprofitability and competition.
Bolt Market has adopted a cautious approach to entering the grocery delivery business. It currently offers services in Nairobi’s Kilimani area, targeting customers within a 10-kilometer radius, including Upper Hill, South C, and Riverside. Customers can order groceries using the Bolt Food app from 8:00 AM to 11:00 PM or schedule deliveries 24 hours in advance. As part of the test, Bolt is offering free delivery within a 3-kilometer radius and discounts up to 80%.
Bolt Market’s launch reflects the challenges of the logistics business in Kenya. Many consumers prefer affordable “vibandas,” so the market relies on upscale areas where convenience and reliable service are prioritized. According to Edgar Kitur, Bolt Food’s General Manager, the average order value varies significantly, highlighting an affinity for high-end customers.
The Kilimani store will provide data on service efficiency, customer satisfaction, and market viability before further expansion. High delivery fees in Nairobi discourage some potential customers, especially outside high-end neighborhoods. Some customers prefer bundling groceries with other supermarket purchases to save on delivery costs.
Bolt Market offers over 2,000 products, including fresh produce from local suppliers, household essentials, and beverages. It employs AI logistics for delivery optimization and enforces quality checks throughout. Bolt Market is also exploring new pricing strategies, such as discounts based on order size and distance, and considering future subscription plans for regular customers to provide predictable pricing and cost savings.
Expansion beyond Kilimani is planned for areas like Parklands, Eastleigh, and Lavington, with potential rollout outside Nairobi. There are no set timelines, but Bolt Market intends to refine its service using data from Kilimani to better understand customer response in a competitive and price-sensitive market. Subscription models may also be explored to offer consistent pricing and benefits for regular users.
