Bolt has announced a strategic partnership with Hakki Africa, a microfinance company, to provide vehicle financing for drivers on its platform. The partnership aims to deploy 1,500 vehicles over the next 18 months to drivers on Bolt’s platform that reach certain criteria.
If eligible, 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 more new and existing drivers on the platform.
In Africa, research indicates that ride-hailing drivers in Africa who do not own their vehicles typically earn less compared to those who do. A 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. It is for this reason that Hakki Africa aims to empower more drivers to own their vehicles and maximize their earnings.
Commenting on the partnership with Hakki Africa, Linda Ndung’u, General Manager for Rides at Bolt 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.”
On his part, 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.”