International giant taking on Uber with R3 billion pumped in South Africa

Transport company Bolt has hit a major investment milestone, announcing that it had invested a total of R3 billion into South Africa’s growing e-hailing sector over the past decade.

The company first launched in Estonia in 2013 under the name Taxify, before expanding to South Africa just three years later.

Since its rebranding as Bolt in 2019, the company has grown into one of the most popular e-hailing service providers in the country, competing with the likes of American giant Uber.

The company reported that since entering the South African market 10 years ago, it has carried over 30 million passengers and recruited 500,000 drivers.

In a recent press statement, Bolt senior operations manager Simo Kalajdzic said the investment reflected the company’s confidence in South Africa as a strong growth market.

“South Africa has been one of Bolt’s most important markets globally over the past decade,” Kalajdzic said. “Our R3 billion investment reflects not just our growth.”

“It also reflects our belief in the role that platform-based mobility plays in driving economic participation. The milestone highlights both the scale of the business and its role in supporting economic activity.”

Last year, Bolt granted over R400,000 in funding to ten South African entrepreneurs through its inaugural Accelerator Programme.

The programme reportedly attracted more than 578 applications, from which 120 applicants were chosen to take part in a business camp run by Bolt.

The company partnered with Indian automotive manufacturer Bajaj and South African vehicle solutions provider MyNextCar for a $10 million fleet rollout of 1,500 new vehicles in the country.

Bolt also committed €100 million (approximately R1.9 billion) between 2024 and 2027 to introduce enhanced safety features across its global markets.

These features include in-app audio recording, rider verification, trip monitoring, and 24/7 safety support, with safety and security remaining an ongoing priority for the company’s future investments.

E-hailing sector on the rise

The e-hailing industry has become one of the biggest contributors to South Africa’s gig economy over the past few years.

Defined by flexible, short-term contracts or freelance work rather than traditional long-term employment, the gig economy’s rise has been greatly facilitated by advances in digital technologies.

Bolt recently commissioned market research firm Ipsos to conduct an independent study on South Africa’s gig economy and its impact on the country’s 1.35 million gig workers.

Kalajdzic appeared on 702 to discuss the study’s findings, where he revealed that e-hailing is one of the biggest contributors to the country’s broader gig economy.

“When we talk about the two biggest participants of the gig economy, we see both e-commerce and e-hailing at equal participation rates of around 29%,” Kalajdzic said.

“The common thread that we see amongst all participants is that all you really need is a smartphone and a digital platform to start earning.”

According to the report, 70% of e-hailing drivers in South Africa use it as a secondary source of income, with the remaining 30% using it as their primary source of income.

Kalajdzic said many of these drivers had reported positive improvements in their quality of life, using their earnings to cover essential expenses such as food and rent.

32% of respondents said they were primarily motivated by the financial freedom and independence that the gig economy provided.

In a separate 702 interview, Kalajdzic said the demand for Bolt’s services has significantly outpaced the supply of available drivers and vehicles.

“We see e-hailing fitting a place where it’s not just a core job focus, but rather something that’s considered a stepping stone,” Kalajdzic said. “It is being seen as a pathway into entrepreneurship.”

“What we do see is that many drivers stay for either six months to a year. Some stay even longer and build fleets and turn this into an actual business, whereas others would venture off into other gig economies.”