Estonian taxi firm Bolt, which went by Taxify until earlier this year, has re-launched its service in London. It’s initial attempt at offering its service in London in 2017 was stymied by a license denial.
The London ride-hailing space is choke-full of players, among them Uber and the local black taxi service. Bolt intends to navigate this competition by giving cheaper rides to passengers and increasing drivers’ commissions.
This past May London-based Uber drivers held a chain of strikes protesting poor compensation; citing the disparity between the conditions they have to endure and the company’s beyond unicorn status valuation ($82 Billion at the IPO).
On this move Bolt founder said, “We see this as quite a monumental thing for both the company and the ride-hailing industry as a whole. London is one of the biggest, most profitable markets for Uber globally and one where it didn’t have a serious competitor.”
For the next two months Bolt intends to take a 7.5% commission from drivers, after-which it will increase its cut to 15%, which is still 10% less than what Uber charges drivers.
In a statement to Reuters, Bolt founder, Markus Villig said, “Uber is basically a monopoly. At the same time, an average Uber driver makes less than minimum wage.”
Related article: Ride-hailing service Taxify to re-brand to Bolt
