How Bolt's New Pricing System is Revolutionizing Ride-Hailing Dynamics

How Bolt's New Pricing System is Revolutionizing Ride-Hailing Dynamics

By Staff Writer, 27 May 2024

In a bid to empower drivers and enhance rider experience during peak hours, Bolt has rolled out a new bidding system. This innovative approach allows drivers to negotiate prices directly with riders, aiming to incentivize drivers while increasing the chances of riders securing rides swiftly.

This move mirrors inDrive's customer-driver negotiation model, reflecting the evolving landscape of ride-hailing services in the country. The initiative also seeks to address the common concern among drivers regarding pricing, thereby encouraging more individuals to engage in gig work.

Femi Adeyemo, Bolt's communication manager, emphasized that the new system is designed to benefit drivers financially, with all trips subject to the same standard commission rates.

Under Bolt's existing framework, rides are priced using algorithms, often resulting in increased fares during periods of high demand. This pricing model, shared by other ride-hailing giants like Uber, has faced criticism for its potential exploitation of both drivers and riders, as it limits drivers' ability to negotiate fares directly.

However, Bolt's introduction of the bidding model heralds a new era where drivers can engage in fair price negotiations with riders. Despite its promising prospects, the model also poses challenges in ensuring equitable and consistent pricing standards.

Having established its presence in the Nigerian market prior to inDrive, Bolt has experienced significant growth since its inception. Meanwhile, inDrive, launched in Lagos in 2019, has steadily expanded its operations to encompass 15 cities as of July 2023.

The implementation of this new pricing system aligns with Bolt's broader initiatives aimed at reducing rider wait times and bolstering driver earnings. Earlier in March 2024, Bolt's driver-partners in Nigeria became eligible for fuel and insurance discounts and various incentives under the Bolt Rewards program, further enhancing their overall experience within the platform.

Source: Ifeoma Joy Okorie / TechPoint Africa

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