In response to driver discontent over low earnings, Bolt reintroduced car loans in Kenya. However, drivers are still demanding a reduction in commission and an increase in base fares.
Bolt raised the base fare by 10% to KES 220 ($1.71) from KES 200 ($1.55) on August 26. Drivers believe the increase was minimal and are advocating for a fare structure based on distance and time rather than discounted fares.
The deputy chairman of the Organisation of Online Drivers Kenya (OOD), Dennis Nyariki, expressed that offering a loan product without addressing unfair pricing is inadequate.
Bolt initially provided car loans in 2019, offering Renault KWID cars to drivers, but paused the program during the COVID-19 pandemic. Drivers had the opportunity to purchase cars valued at KES 1.2 million ($9,296) with monthly installments of KES 43,000 ($333).
Under the new arrangement, fintech Hakki Africa will source the vehicles and manage loan disbursement. The interest rate will vary based on the vehicle type and loan repayment period. Bolt did not disclose details about the vehicles or costs.
The OOD criticized the loan facility, citing monthly charges from the previous car offering and claiming that vehicles were repossessed from drivers for missed payments, indicating aggressive loan collection methods.
Bolt has not yet responded to requests for comments.
Several drivers stated that they are not interested in the car loans due to insufficient earnings to cover vehicle maintenance costs.
Ride-hailing companies face mounting pressure as drivers advocate for fare increases to improve their earnings.
While Bolt aims to provide relief to disgruntled drivers through car loans, the company may need to consider greater concessions by reducing commission.