On August 22, ride-hailing giant Bolt reintroduced car loans in Kenya in response to growing driver discontent over low earnings. However, Bolt’s driver partners insist on their earlier demand for a reduction in commission and an increase in base fares.
Bolt increased the base fare on August 26 by 10% to KES 220 ($1.71) from KES 200 ($1.55). However, drivers claim the increase was insignificant and want a fare structure based on distance and time instead of discounted fares.
“You just can’t offer a loan product while skipping our key grievance, which is unfair pricing,” said Dennis Nyariki, the deputy chairman of the Organisation of Online Drivers Kenya (OOD).
Bolt first offered car loans in 2019 and offered Renault KWID cars to drivers, but were paused during the COVID-19 pandemic. Drivers could buy cars valued at KES 1.2 million ($9,296) with monthly installments of KES 43,000 ($333).
Under the new offering, fintech Hakki Africa will source the vehicles and handle loan disbursement. The interest rate will depend on the vehicle type and loan repayment duration. Bolt declined to share specifics on the type of vehicles and the cost.
The Organisation of Online Drivers Kenya (OOD) criticised the loan facility, citing monthly charges under the previous car offering. The union claimed that vehicles were repossessed from drivers due to missed payments, suggesting aggressive loan collection tactics under the offering.
Bolt did not immediately respond to a request for comments.
At least five drivers who spoke to TechCabal said they were not interested in the car loans. They argued that their earnings were insufficient to cover vehicle maintenance costs.
“The loan facility can’t really help. The money we make is not even enough to service a car,” Stephen Njoroge, a Bolt driver partner, told TechCabal.
Two other drivers said they were unaware of the facility, although Bolt Kenya may attempt to incentivise them with the product in future campaigns.
“The loan is only good for people who want to enter the business. We already have the cars,” Timothy Wachira, another Bolt driver partner, said.
Ride-hailing companies have come under increasing pressure after drivers began pushing for fare hikes to increase their earnings.
While Bolt hopes the car loans will offer some relief to aggrieved drivers, the company may have to consider making bigger concessions by lowering commission.
