In an effort to address the growing dissatisfaction among its drivers over inadequate earnings, Bolt, a leading ride-hailing company, reinstated its car loan program in Kenya on August 22. Despite this initiative, Bolt’s driver partners are maintaining their initial call for a reduction in the commission rates charged by Bolt and an increase in the starting fares for rides.
On August 26, Bolt made a move to increase the base fare by 10%, raising it from 200 Kenyan Shillings (approximately $1.55) to 220 Kenyan Shillings (around $1.71). However, the drivers have expressed that this fare hike is too minor to make a significant difference. They are advocating for a fare model that is calculated based on the actual distance traveled and the time taken for each trip, rather than one that relies on offering fares at discounted rates.
Dennis Nyariki, the deputy chairman of the Organisation of Online Drivers Kenya (OOD), articulated the drivers’ frustration by stating, “You just can’t offer a loan product while skipping our key grievance, which is unfair pricing.”
The car loan scheme was initially launched by Bolt in 2019, with the company providing Renault KWID vehicles to its drivers. This program, however, was suspended during the COVID-19 pandemic. The terms allowed drivers to purchase vehicles valued at 1.2 million Kenyan Shillings (equivalent to $9,296), with the option of paying in monthly installments of 43,000 Kenyan Shillings (about $333).
With the relaunch of the car loan program, the financial technology company Hakki Africa will take on the role of procuring the vehicles and managing the loan distribution process. The interest rates applied to these loans will vary depending on the type of vehicle chosen and the agreed-upon loan repayment period. Specific details about the vehicle types and their prices have not been disclosed by Bolt.
The OOD has voiced criticism regarding the loan facility, referencing the financial burden of monthly payments from the previous iteration of the car loan program. The union has raised concerns about the repossession of vehicles from drivers who failed to meet their payment obligations, which points to potentially stringent loan recovery practices.
TechCabal has reported that at least five drivers have expressed a lack of interest in the new car loan offering, citing that their current earnings do not suffice to cover the costs associated with maintaining a vehicle. Stephen Njoroge, a driver affiliated with Bolt, conveyed to TechCabal, “The loan facility can’t really help. The money we make is not even enough to service a car.”
Additionally, two drivers mentioned their lack of awareness regarding the loan facility, though it is possible that Bolt Kenya might promote this service to them in upcoming marketing efforts. Timothy Wachira, another driver with Bolt, pointed out, “The loan is only good for people who want to enter the business. We already have the cars.”
Drivers have been increasingly pressuring ride-hailing services for fare increases to improve their take-home pay. While Bolt is hopeful that the car loan program will alleviate some of the drivers’ grievances, the company might need to contemplate more substantial changes, such as lowering its commission fees, to truly address the concerns of its driver partners.
