Ayodeji Ayenuwa
Bolt Food, the food delivery service of ride-hailing giant Bolt, has officially announced its decision to discontinue operations in South Africa on December 8, 2023.
This development follows the announcement of the company’s exit from the Nigerian market on December 7, 2023.
The decision to withdraw from South Africa is driven by business reasons, according to a Bolt spokesperson: “At this time, we have made the difficult decision to discontinue our food delivery operations in South Africa due to business reasons. The decision to exit this market is necessary to streamline our resources and maximise our overall efficiency as a company.“
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Bolt Food had entered the South African market in April 2020, adopting a competitive pricing strategy against major rivals such as Mr. D Food and Uber Eats.
One of the key strategies for market penetration involved offering lower prices, as the spokesperson explained, “Bolt Food initially charged a flat 15% entry-level commission fee, while Uber Eats and Mr. D Food charged up to 30% of restaurant partners’ commissions.”
Despite the closure of its food delivery arm, Bolt remains committed to its other verticals in South Africa, affirming that it will “continue to focus on delivering good quality services to its customers,” according to the company spokesperson.
Bolt experienced notable financial growth in 2022, with a 152% increase in turnover, primarily driven by its ride-hailing business. This closure aligns with the company’s concentration on more lucrative segments, emphasizing a commitment to providing top-notch services despite the exit from the food delivery market.
As Bolt Food wraps up its operations in South Africa, the impact on customers and couriers is acknowledged, with the company ensuring a smooth transition.
This move underscores the evolving dynamics and challenges in the competitive food delivery industry, influenced by economic factors, industry scrutiny, and strategic business decisions.
Techrectory with Agency Report.
