In this episode of ITWeb TV, Simo Kalajdzic, senior operations manager at Bolt South Africa, discusses how a fatal profile-rental incident prompted the e-hailer to strengthen safety controls against driver profile sharing. #Bolt #E-hailing safety #SouthAfrica
Bolt says it has paid more than R42.3 billion to driver operators in South Africa since launching in the country a decade ago, highlighting the scale of the economic activity generated through the local e-hailing sector.
The company’s local operations form part of a broader international platform that has moved beyond its original ride-hailing business model, to a platform-based proposition.
Founded in 2013 as Taxify in Estonia, Bolt now operates in more than 50 countries and 600 cities globally, with services spanning ride-hailing, food delivery, micro-mobility, car rental and grocery delivery, although not all of these services are available in South Africa.
In an interview, Simo Kalajdzic, senior operations manager at Bolt South Africa, told ITWeb TV that the e-hailer’s expansion reflects a broader platform strategy in which mobility services are increasingly combined with adjacent consumer services.
Despite many challenges plaguing the sector, consumer demand has grown and participation in the gig economy has increased over the past decade. For many driver partners, the local ride-hailing industry provides an important source of income, whether as a primary earning activity, or as a way to supplement existing income streams, he explained.
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“Since we’ve launched in South Africa in 2016, we have cumulatively onboarded just over 500 000 driver operators, and also, more than 30 million passengers have used our platform at least once. In terms of the economic impact, over the same 10-year period, the driver operators have completed at least one trip on the platform,” he noted.
“What we do see is that drivers who choose to operate on e-hailing platforms, many of them see it as an entry point. Unemployment is a real issue we face in South Africa.”
Bolt’s figures provide a measure of the financial flows generated through the platform, although the company does not disclose how many of the cumulative driver operators are currently active on the platform.
Kalajdzic describes the wider gig economy as providing temporary earning opportunities for people who have access to a vehicle and the necessary documentation, but cannot immediately secure formal employment.
The platform is therefore not necessarily viewed by all drivers as a permanent occupation, with some using it while pursuing other employment or business opportunities.
The R42.3 billion paid to operators comes amid a business model in which drivers and vehicle owners carry several costs associated with providing the service.
Bolt charges a 24% commission on each completed trip, according to Kalajdzic. Drivers or vehicle owners must then account for expenses including fuel, maintenance, insurance, vehicle financing and safety equipment.
Simo Kalajdzic, senior operations manager at Bolt South Africa. (Photograph by Lesley Moyo)
Over the past few years, South African e-hailing drivers have repeatedly protested over low earnings, high commissions and rising operating costs, with Uber, Bolt and other platform operators facing demands for better pay.
“Ultimately, fuel is what allows drivers to get into their vehicle, accept trips each and every day. In addition to the fuel cost, there’s other expenses incurred by either the driver or the vehicle owner,” noted Kalajdzic.
“This is a discussion and concern that we take very seriously – when you look at a driver operator today, there are multiple costs that will influence their business, the biggest one being the fuel price. Bolt monitors fuel prices when determining pricing and minimum earning thresholds, while also using incentives and promotions to maintain demand when riders face affordability pressures.”
Tech takes role in safety
Safety remains a major issue for SA’s e-hailing industry, but Bolt says the growing volume of dashcam footage circulating on social media should not automatically be interpreted as evidence of a corresponding increase in crime.
Over the past few months, social media has been flooded with footage and accounts from drivers highlighting a range of crimes, including armed robberies, hijackings and assaults.
Kalajdzic points out more drivers are installing cameras in their vehicles, resulting in more incidents being captured and shared publicly. He says the footage can also provide useful evidence for platforms and authorities investigating incidents.
“So, drivers are actively installing the dash cameras in the vehicle. And of course, as that continues to grow, we will continue to see a higher rate of footage being circulated or shared on social media, However, Bolt’s own data has shown a significant year-on-year decline in safety incidents.”
Bolt is increasingly relying on technology to identify potential risks during trips and verify the identities of people using its platform.
The company’s safety systems include trip-anomaly detection, which can identify sudden stops or deviations from expected routes, alongside emergency-response mechanisms and identity verification.
“If we look at our suite of safety features on the app, it starts with stringent verification processes on the rider as well as the driver’s side. It then moves beyond that on trip, where you’ve got active safety features working from the time the trip starts to the time that the trip ends,” he said.
The company’s technology-driven approach has also exposed the difficulty of preventing users from circumventing identity controls.
In February, 22-year-old e-hailing driver Isaac Satlat was murdered near Pretoria by criminals pretending to be riders of Bolt. The e-hailer later stated he was not registered on the active account because he was unlawfully using another driver’s profile.
Asked about this case, Kalajdzic acknowledged the incident highlighted a vulnerability that required additional safeguards.
“When you talk about somebody trying to gamify the system, they’ll always look for loopholes. And we as a technology provider, as well as a platform building these types of safeguards, we need to keep evolving.
“Bolt subsequently reviewed the incident and introduced additional safeguards. The incident also coincided with increased regulatory scrutiny of the company’s safety controls.”
With the e-hailing regulations now in play, the frameworks are clear, and the laws governing those rules are clear, he commented. “The gap that we see now is implementing it in practice.”
The company’s immediate priorities over the next two years remain focused on safety, affordability and sustainable earning opportunities.
“Affordability is centred on accessibility, ensuring we keep the mobility space affordable as well as reliable for the riders. At the same time, ensuring sustainable earning opportunities for the driver partners that are really the backbone behind this industry.
“The next growth phase for Bolt will focus on growing economic activity, while addressing the cost pressures, safety risks and regulatory challenges facing the industry,” he concluded.
