Discounts don’t cut driver pay: Bolt clarifies ride-hailing payment structure

The ride-hailing sector continues to grow and provide Kenyans with a convenient and secure means of transport.

Like any other growing market segment, the ride-hailing industry continues to experience a surge in players, leading to stiff competition. This surge has, in turn, forced different players to take up unique approaches to secure a profitable niche in the market, from specialising in corporate customers to targeting the everyday mwananchi who use a matatu.

Bolt, a leading platform in the ride-hailing sector, has taken steps to distinguish itself in this highly competitive market by offering affordable trip prices and discounts to customers.

Bolt, like all other ride-hailing players operating in Kenya, is subject to the government policy implemented by the National Transport and Safety Authority (NTSA) requiring all trips on these platforms to cap their commission charged per ride at 18 per cent, meaning drivers take home is at 82 per cent per ride.

To ensure competitive pricing for both drivers and customers, Bolt employs a structured pricing model that considers several key components. The base fare is the minimum charge for every trip, regardless of any other factors.

Time fare is a charge based on the duration of the ride, which is particularly useful during trips with traffic or multiple stops.

Distance fare, calculated per kilometre travelled, ensures fair pricing for longer trips. Additionally, surge pricing temporarily increases fares during peak hours or in high-demand areas. Collectively, these components determine the final cost of a trip, enabling Bolt to offer a transparent and balanced pricing structure for both drivers and riders.

Bolt offers clear and distinct payment options: cash and card. With cash payments, drivers receive their fares directly, either in cash or via mobile money. For card payments, customers make payments directly to Bolt, after which the company deducts their 18 per cent commission before reflecting the remaining balance in the driver’s account.

Bolt is well known for rewarding their customers with discounts on rides, but there are common misconceptions about how these promotions impact drivers. It is important to note that Bolt fully absorbs the cost of any discount awarded to all their customers, which means that the driver receives their commission in full from all rides.

It is standard practice that drivers pay Bolt an 18 per cent commission based on the full trip fare before any discount is applied. This means that driver earnings are always calculated as if no discount were given, ensuring that promotions do not reduce their income.

The driver app provides a clear earnings breakdown for transparency, with all discount reimbursements processed instantly and reflected in the driver’s daily earnings.

Through its structured pricing model, transparent earnings system, and customer-friendly discounts, Bolt continues to offer a reliable and competitive ride-hailing service in Kenya—ensuring fairness for both drivers and riders while enhancing urban mobility.