Bolt invests 300 million baht in Thai expansion amid ride-hailing competition

Estonian tech firm Bolt is set to invest 300 million baht in Thailand to bolster its presence in the country as part of its Southeast Asian expansion strategy. This move follows Bolt’s recent funding round, which raised 628 million euros at a valuation of 7.4 billion euros, earmarked for geographical growth.

The company’s expansion adds to the fierce competition in the Thai ride-hailing market, as new entrants challenge established players such as Grab, Line Man Taxi, and Air Asia. Ride-hailing services are experiencing a resurgence in the wake of the pandemic.

In 2021, Grab Taxi (Thailand), the local operating unit of Grab, scooped a profit of 576 million baht for the first time after a decade of operations in the country. The group also aims to turn a profit this year.

According to Nathadon Suksiritarnan, Bolt’s Thailand manager, the country is a significant market for the company due to its existing demand for ride-hailing services, economic growth, and status as a popular tourist destination. Thailand is currently the only Southeast Asian nation where Bolt operates.

Nathadon believes that the country’s ride-hailing sector can still grow to encompass half of the population, up from less than 10% currently. He estimates that the Thai ride-hailing market could be worth 160 billion baht in five years, with a compound annual growth rate of 9.4%.

Over the next three years, Bolt plans to invest 300 million baht in Thailand, with funds allocated for expanding its services and creating opportunities for new drivers to join the platform in 2023.

Bolt anticipates that the number of drivers on its platform will double by the end of the year. Nathadon stated that Bolt has been offering ride-hailing services in Thailand since mid-2020, experiencing triple-digit growth annually. The company has obtained a ride-hailing licence from the Department of Land Transport.

Nathadon emphasised that Bolt is aware of the competitive market in Thailand and aims to provide consumers with a choice, fostering healthy competition. He explained that Bolt adopts a unique business approach, focusing on “gravity,” which entails wise and selective investments, as well as lean and flexible operations. Nathadon said…

“This is why we could operate without charging commission fees to our drivers over the past few years, offering competitive fares to passengers.”

From today, June 12, Bolt will begin collecting a 15% commission fee from its drivers. The fee will be reinvested to develop new features, such as enabling customers to book services in advance, Bangkok Post reported.

Currently, Bolt provides ride-hailing services in Bangkok, Phuket, and Chiang Mai. The primary users are young people, and the company is exploring ways to attract other customer segments.

Bolt intends to launch a corporate mobility service for business users in the near future. In other countries, the company offers food delivery services, scooter rentals, and e-bike sharing. Nathadon said…

“Our goal is to help people transition from private cars to shared mobility while creating more earning opportunities in Thailand.”

Bolt’s services are available in 45 countries and 500 cities across Europe and Africa, serving over 100 million customers. The company aims to achieve group-level profitability within 12 months and does not require additional capital.