Bolt Serves Only Corporate Customers In Tanzania As Operational Changes Occur

Bolt Serves Only Corporate Customers In Tanzania As Operational Changes Occur

Estonian ride-hailing company, Bolt, has stated that it will only it will only procure its services to corporate customers in Tanzania from henceforth. The company made announcement on Wednesday to mark its operational change.

This action is coming in a bid to comply to some developments related to how the company operates in Tanzania and the nations regulatory body.

As part of the ride-hailing company’s operational changes to comply with the regulatory environment, all retail cash users will not have access to the service.

It will be recalled that the Tanzania’s Land Transport Reagulatory Authority (LATRA) had in March this year raised transportation fares and reduced ride-hailing companies commission per ride.

As it stands, the ride fare has increased by 50% per Km and commission has been slashed from 33% to 15% in repercussions reducing profit for the ride-hailing companies such as Bolt.

The regulatory changes had taken effect back in April of which saw Uber, a ride-hailing counterpart of bolt suspend operation in the nation.

Although Bolt had continued to offer its services in the nation to the general public, while keeping up with LATRA  to resolve the pending issue, yet it had to take the decision as it states in quote “undue pressure on the sustainability of its operations in the country”

Serving only corporate customers, will see a reduction in the ride-hailing company’s customer base, therefore most of its drivers will not receive ride requests causing them to seek employment elsewhere.

This action sees Bolt surrender to countpacts like Litttle, another ride-hailing company that already charges 15% commission per ride in the nation.

Bolt had come out to say there was no other choice but to reduce its losses in the market until the regulatory body creates a change in the regulation.

This action limits the category of people that can order a bolt ride in  Tanzania.