On August 22, 2024, ride-hailing giant Bolt reintroduced its car loan program in Kenya, aiming to alleviate growing dissatisfaction among its driver partners over low earnings. However, this move has done little to quell the concerns of Bolt drivers, who remain steadfast in their demand for a reduction in Bolt’s commission fees and an increase in base fares.
The reintroduction of car loans comes at a time when many drivers are voicing their grievances about the financial strain of working for the platform. In response to this, Bolt announced a slight increase in the base fare, raising it by 10% from KES 200 ($1.55) to KES 220 ($1.71) on August 26. Despite this adjustment, drivers argue that the increase is insufficient and fails to address their primary concerns.
Dennis Nyariki, the deputy chairman of the Organisation of Online Drivers Kenya (OOD), expressed the frustrations of many drivers, stating, “You just can’t offer a loan product while skipping our key grievance, which is unfair pricing.” The drivers are advocating for a fare structure that considers both distance and time, as opposed to the current discounted fare system that they believe undermines their earnings.
Bolt’s initial car loan offering began in 2019, where drivers were provided with Renault KWID vehicles under a financing arrangement. Drivers could purchase the cars for KES 1.2 million ($9,296) with monthly payments of KES 43,000 ($333). However, this program was paused during the COVID-19 pandemic.
Under the new loan scheme, Bolt has partnered with fintech company Hakki Africa, which will be responsible for sourcing the vehicles and managing the loan disbursement process. Although Bolt has yet to release specific details about the types of vehicles available or the cost structure, the move has already drawn criticism from the Organisation of Online Drivers Kenya (OOD). The union has voiced concerns over the aggressive loan collection tactics observed in the previous offering, which led to vehicle repossessions due to missed payments.
Many drivers have expressed a lack of interest in the reintroduced car loans, citing the challenges of maintaining their vehicles on their current earnings. Stephen Njoroge, a Bolt driver partner, stated, “The loan facility can’t really help. The money we make is not even enough to service a car.” Timothy Wachira, another driver partner, echoed this sentiment, explaining that the loan might only appeal to new entrants in the ride-hailing business, as most current drivers already own their vehicles.
Despite Bolt’s efforts to address the drivers’ concerns through the car loan program, it is evident that more significant concessions may be required to restore harmony between the company and its driver partners. The ongoing pressure from drivers for fare hikes and a reduction in commission fees highlights the broader challenges facing the ride-hailing industry in Kenya, where drivers are increasingly pushing for fairer compensation and improved working conditions.