Uber’s European rival Bolt is now taking it on in the streets of London.
The Estonian ride-hailing company previously known as Taxify declared its release in the U.K .’s capital city Tuesday. It joins a rising list of start-ups trying to obtain market share from Uber in the London metropolitan area.
“We refer to this as quite a monumental thing for both the firm as well as the ride-hailing industry as a whole,” Bolt CEO Markus Villig told CNBC in an interview. “London is one among the largest, most lucrative markets for Uber worldwide and one where it didn’t have a serious competitor .”
Villig, who started the company in 2013, said more than 20, 000 drivers have already registered with Bolt ahead of Tuesday’s launch. There were an estimated 87, 900 private hire vehicles licensed in London as of March 2018, based on the Department for Transport.
Bolt operates in 30 countries and 100 cities with 25 million customers across the globe. The Estonia-based company reached an estimation of $1 billion last year, entering an exclusive club of European tech unicorns. Villig stated Bolt has won over drivers and passengers with lower fees and commissions across Europe and Africa.
“We pay attention to markets where Uber used to have a monopoly and then we come in with a much better offering for drivers,” he stated.
Bolt takes a 15% commission from motorists per ride, which it states permits drivers to earn over 10% more on average compared to other platforms. Last month, some Uber drivers in London went on strike demanding that the company reduced its commissions from 25% to 15 %.