news Bolt to let drivers set fares in bid to win drivers from Uber

Bolt’s UK drivers will be allowed to set their own fares as part of a new initiative from the Uber rival. The move is seen as a way of attracting drivers to work for Bolt rather than its competitors as ride-hailing apps battle to recruit enough drivers to cope with recovering demand.

The move is also seen as a statement from Bolt in response to demands from Uber that all ride-hailing app drivers should be classified as “workers” rather than self-employed. Uber has already given worker status – including pensions and holiday pay – to its drivers, But by giving control of fare-setting to the driver, Bolt could be seen as exercising less control over how a selfemployed driver goes about the job.

Estonian-owned Bolt app said it hoped the move would help drivers ensure any journey they make will be profitable. The app also hopes it will help tackle a rise in frequent cancellations seen by passengers in recent months, as drivers cancel jobs at the last minute to avoid a less profitable booking.

Customers using the Bolt app will be able to pick from a list of drivers offering various prices. Until now, the drivers had to use set prices decided by a central algorithm. The new model will be trialled around the UK in the coming month, and rolled out in London by Christmas.

Sam Raciti [above], Bolt’s manager for western Europe, said: “Drivers have consistently asked us for the ability to set their own prices so they can ensure a journey is profitable enough before it’s accepted. These changes are part of that philosophy and will create a better functioning marketplace.”

Bolt’s announcement comes just days after rival Uber revealed it would be raising its prices in London by 10%. This is the first Uber price rise since 2017, and is seen as a bid to lure more drivers back to the platform. The move means Uber’s minimum fare in London has risen from £5 to £5.50. Peak time fares for airport trips have also risen by 25%.

Both Uber and Bolt are short of drivers, having lost many thousands during the pandemic to delivery firms. The driver shortages have led to an increase in “surge pricing” across all apps and an increase in waiting times. Uber said recently that it needed around 20,000 more drivers to return to usual service levels.

Global taxi market on track for recovery by second quarter of 2022, according to Taxi Butler report

The taxi sector is well -placed to bounce back strongly from the impact of the Covid-19 pandemic, according to a new report published by Amsterdam-based booking terminals maker Taxi Butler.

The company’s Global Industry Trends Report, a comprehensive paper that highlights dynamic trends in the taxi industry across the globe, shows growth of 72.69% is likely by the second quarter of 2022.

The report is subtitled “A 3-year impact analysis on the taxi market: before, during and after Covid-19”. The report concludes that global B2B taxi bookings will almost double (+72.69%) by Q2 2022, as compared to January 2021, signifying that the industry will be back on track and almost fully recovered from the pandemic, providing that there are no new COVID-19 restrictions in the future.

Taxi Butler co-founder Steven Blom said: “Having partnered through this pandemic, we wanted to understand how it impacted our industry, how to get out of this situation together and what we can expect in the near future. We are positive about the future of the industry, and according to the numbers, the B2B taxi market should be back on track somewhere around Q2 2022, if all goes well”.

The present findings also look at the toughest period for the industry from February 2020, the last ‘normal’ month before COVID-19 restrictions, to April 2020, when restrictions were in full effect, where the industry saw a 91.35% collapse in bookings.

The report also analyses taxi booking trends in four major regions: the UK & Ireland, North America, Australia/New Zealand, and Europe. The UK and Ireland saw the most significant decline, from February to April 2020, losing 96.48% of their B2B taxi bookings, followed by Europe at 94.83%, Australia and New Zealand at 85.30%, and North America at 81.21%.

Laurence Docherty, head of sales at Taxi Butler, said, “Since the pandemic, the industry has been able to bounce back and adapt and will continue to thrive in the future. The resilience and the strong urge for business stability has seemed to become a reality. 2022 holds a very positive outlook for the industry as a whole, and we’re hoping that this report can help businesses understand the global taxi industry even better.”

The report estimates the global taxi industry contributes considerably to the world’s economy, and was valued at $159.6 billion in 2020. Furthermore, Taxi Butler estimates it will almost double to $327.54bn by 2026, at a rate of 8.95% over the forecast period (202126).

The report says 2021 has witnessed a bumpy yet steady rise in taxi bookings worldwide. As the lockdown eases and the travel sector reopens globally, the taxi booking industry is more robust than ever, the report states, and the global taxi industry should be back on track by around Q2 2022.

The expected demand for global B2B taxi bookings is expected to increase by 138.85% in December 2021 compared to December 2020, more than double.

The report acknowledges that the UK is currently struggling with a driver shortage, where drivers moved to other services or sectors, and if it persists, it will hinder the projected growth of the industry in the coming months.