Bolt, the leading on demand mobility company in Africa has today announced a strategic partnership with Hakki Africa, a leading African microfinance company, to provide vehicle financing for drivers on its platform, in efforts to enhance their earnings. This partnership aims to deploy 1,500 vehicles over the next 18 months to drivers on Bolt’s platform that reach certain criteria for consideration. Driver partners shall have access to lower loan down payments and will receive incentives based on their performance.
Hakki Africa offers a credit scoring system and other fintech solutions to provide loans to taxi drivers who have limited access to traditional financial services in Kenya. This partnership between Bolt and Hakki Africa provides the opportunity for vehicle ownership by making financing more accessible for a greater number of new and existing drivers on the platform.
Research indicates that ride-hailing drivers in Africa who do not own their vehicles typically earn less compared to those who do. Various studies highlight the challenges faced by drivers who rent or lease their vehicles from third parties. One key study in Johannesburg, South Africa, found that many ride-hailing drivers do not own their vehicles but rather rent them, leading to significant financial burdens. The rental costs, along with platform commission fees, often leave drivers with minimal net earnings.
Linda Ndungu, General Manager, Rides said– ‘At Bolt, we are committed to empowering our drivers by improving their financial stability and overall well-being. Our partnership with Hakki Africa represents a significant step towards achieving this goal by providing accessible and sustainable vehicle financing options. This collaboration will not only enable more drivers to own their vehicles but also enhance their earnings, reduce operational costs, and foster a more prosperous driver community. Together, we are driving change and ensuring that our drivers can thrive in the ride-hailing industry.”
In developing countries such as Kenya, many people struggle to access financial services due to a lack of credit. Local banks have stringent criteria for securing loans, which only a small percentage of the population can meet. Ride hailing drivers are a prime example of this issue. While they desire to buy and own cars, more often than not, they cannot qualify for bank loans, forcing them to rent vehicles at high costs. Over time, the rental fees often surpass the cost of purchasing a car, yet despite making continuous payments, they never gain ownership of the vehicle. This situation makes it difficult for them to improve their financial circumstances. It is on this premise that Bolt and Hakki Africa have come together in this collaborative venture, to enable drivers on its platform to improve their earnings by working towards car ownership.
Yumeka Abe, Director at Hakki Africa said – “We are delighted to partner with Bolt in order to provide quality vehicle financing services to drivers on their platform. Our credit scoring system helps gig-workers, who previously couldn’t access financial services, to establish credit and receive loans. We consider them as essential for Kenya’s economy and its growth. Drivers who take loans from us and can own a car after three and a half years of repayments. Once they pay off the loan, they can increase their net income as drivers, sell the car to start a new business, or pursue other opportunities.