After a failed attempt to launch its services in the city of London, Bolt formerly known as Taxify will launch in London today.
Bolt is Uber Technologies Inc’s major rival in Europe and major parts of Africa where it has attracted drivers and riders with high cuts and lower fairs.
In 2017, Bolt was denied a Taxi license and the startup had to abandon its launch in the city of London.
The eventual launch of its services is coming at a pivotal time. Last month, Uber drivers protested with a strike action after complaining of lower cuts received from ride fairs.
To make an easy entry, Taxify promises to take far less than Uber’s cut.
“Uber is basically a monopoly. At the same time, an average Uber driver makes less than minimum wage,” Bolt’s founder, Markus Villig told Reuters News in an interview.
However,Uber and Bolt are still very much different from each other. Apart from Uber’s huge valuation which is about $82 billion after its New York Stock Exchange initial public offering, Bolt is still an expanding business with less pressure to seek profitability.
Uber’s major goal is to reduce losses and at least break even as early as possible. Bolt is a smaller company, still looking for new markets to penetrate.
Bolt is still in need of funding to take on Uber. Late last year, the company raised about $175 million in fresh funding from a group led by Germany’s Daimler group.
Bolt is an Estonian company.