In the words of a Bolt spokesperson, "The decision to exit [these markets] is necessary to streamline our resources and maximize our overall efficiency as a company."
Bolt Food, the familiar player in the food delivery game, is gracefully exiting the scenes of South Africa and Nigeria next month. The decision, they say, is all about business efficiency and resource optimization. In the words of a Bolt spokesperson, "The decision to exit [these markets] is necessary to streamline our resources and maximize our overall efficiency as a company."This move comes after Bolt unveiled its ambitious plans to dive into the food delivery sector back in 2019, eyeing South Africa as one of its debut markets alongside Estonia and Finland. By 2020, the company had set its foot in the food delivery domain, starting operations in Cape Town. In October 2021, it further expanded its culinary conquests to Johannesburg and Nigeria.One of the key strategies in Bolt Food's playbook was to outmaneuver competitors by offering more attractive pricing. For example, in South Africa, they implemented a flat 15% commission fee on all restaurant partners, a stark contrast to the 30% charged by Uber Eats and Mr D Food.However, the reality of the market proved to be a tough nut to crack. Despite the competitive pricing strategy, Bolt Food found itself locked in fierce competition with other well-established players. Moreover, in Nigeria, the removal of fuel subsidies threw an additional spanner into the works. This, coupled with the rising costs of food, created a challenging landscape for businesses, especially those in logistics-related services.Zooming out, it's worth noting that while Bolt Food bids farewell to the food delivery realm, other Bolt verticals, including the ride-hailing platform, will continue full throttle.In a nutshell, Bolt Food's retreat from the food delivery market is a strategic move aimed at enhancing overall business efficiency. Despite their efforts to dish out competitive pricing, the challenges of the market, especially in Nigeria, led to this decision. Yet, fret not, as Bolt's ride-hailing services will remain in operation, ensuring that the wheels of this transport and delivery juggernaut keep turning.
