TALLINN (Reuters) – Estonia’s Bolt, a preferred ride-sharing service in Eastern Europe and Africa, on Wednesday launched food delivery service in its dwelling city of Tallinn, the nation’s capital, and mentioned it plans to roll out Bolt Food this 12 months in South Africa, Latvia and Lithuania as nicely.
FILE PHOTO: A Bolt (previously generally known as Taxify) signal is seen on the taxi automotive in Riga, Latvia April 9, 2019. REUTERS/Ints Kalnins/File Photo
Bolt, which till early this 12 months was referred to as Taxify, has grabbed business from Uber largely in main African cities and Eastern Europe. It now operates in 30 international locations.
Bolt is a late entrant to the food delivery market, the place quite a lot of start-ups and different ride-sharing corporations have operated for years. It plans to seize market share with decrease costs for shoppers and a greater lower for delivery personnel, whereas constructing on its vast consumer base.
“This is a very competitive market,” Jevgeni Kabanov, chief product officer at Bolt, advised Reuters in an interview. “However, we have more than 25 million people around the world using Bolt and food delivery has been a popular request for quite some time.”
Bolt rebranded earlier in 2019 to make sure the ride-hailing service shouldn’t be confused with taxis and to symbolize its widening providing – it has launched scooter leases in chosen cities.
“I would say food delivery is the third big product launch for us. It fits very neatly into our strategy,” Kabanov mentioned.
In the primary half of 2019, Uber mentioned income from its Uber Eats virtually doubled from a 12 months earlier to $1.1 billion. But the sector has proved difficult for quite a lot of start-ups as funding has declined from a peak in 2015.
Venture capitalists have on the whole pulled again from the sector amid concern over extreme competitors and excessive valuations for corporations that typically are usually not worthwhile.
In Tallinn, Bolt Food’s foremost rival shall be Helsinki-based food delivery service Wolt, which has raised $160 million because the starting of 2018.
Bolt, based in 2013, has raised greater than $200 million from traders, together with Daimler and China’s Didi Chuxing Technology Co, amongst others.
Reporting by Tarmo Virki; Editing by Dan Grebler