Markus Villig, an Estonian college dropout, was only 19 when he founded Taxify, a ride-hailing app that would later change its name to Bolt. Six years later, at the age of 25, Bolt had already made Villig the youngest founder of a billion dollar company in Europe. Bolt’s proposal was not new – Uber was already offering worldwide ride hailing services at the time, and being extremely successful at it. Yet, Villig’s business grew so much it managed to become Uber’s greatest rival and to overcome it in some countries, demonstrating that, sometimes, innovating is not just about creating something completely unheard of.
Uber is an example of a company that became successful for bringing the world a new, bold, groundbreaking idea. In fact, the story of how Uber was born is very curious. Everything started during a snowy evening in Paris when its founders, Travis Kalanick and Garrett Camp, found themselves stuck and unable to find a taxi. Camp was already familiar with such an experience, as the taxi services from San Francisco, where he lived, were extremely ineffective. Inspired by these negative experiences, a James Bond scene and San Francisco’s “gypsy cab fleet”, both men wondered – “What if you could request a ride simply by tapping your phone?”
By the time Bolt was founded, Uber had already been around for almost ten years. Yet, in the present day, it dominates the ride hailing market in many African and Eastern European countries. Why? Because of its vision. Despite not offering something new, Bolt was able to identify where it could thrive, and how. Such was done through assessing country specific regulations and analyzing the performance of operating services. Entering the market ten years later gave Bolt the opportunity to learn from Uber’s previous regulatory missteps, taking a more deliberate approach towards, for instance, issues like licensing. Furthermore, pricing and commissions are also a key feature of Bolt’s success. While Uber charges riders with a 25 percent commission, Bolt tends to charge commissions between 15 and 20 percent, becoming highly competitive and more suitable for countries where the average income is lower.
However, there are still places where the ride hailing market is dominated by neither Uber nor Bolt. If you travel to some Southeast Asian countries and intend to use a ride hailing app, the best thing to do is to download Grab from your playstore. Grab was launched in Malaysia in 2012 and then expanded around the region, ultimately preventing both Uber and Bolt from establishing themselves in this part of the globe. Cultural reasons played a major role in this. Through promptly accepting cash payments and allowing motorbike taxis, Grab could immediately meet the needs, habits and preferences of Southeast Asians, differentiating itself from the Western-centric ride-hailing apps. In March 2018, Uber sold its Southeast Asia ride-hailing and food delivery operations to Grab.
For country-specific examples, an interesting one is Serbia, a nation that is relatively closed to the outside world when it comes to western companies, if we compare it to fellow European countries. With neither Uber or Bolt operating in Serbia, CarGo came into action, as a Serbian company particularly tailored to the Serbian reality, supporting local payment options like mts credit and local bank cards. Another example of a single-country ride-hailing app is TT Rideshare, from Trinidad and Tobago, which saw an opportunity after Uber leaving the country.
Even in countries where Uber or Bolt operate, some local apps are thriving. It is the case of the unicorn companies 99, from Brazil, and Ola, from India. Despite competing with both ride hailing giants, 99 is now one of the go-to ride hailing options for Brazilians. Its success can be associated with features such as a same-day payment system, competitive prices and working better with local regulations. Ola’s case, on its hand, is similar to Grab but adapted to a single country instead of a region. The app is adapted to India, accepting several forms of payment and a diverse range of vehicles, including auto-rickshaws.
In sum, while Uber was the one coming up with the ride hailing idea that changed mobility and transportation forever, other companies have been showing that innovating can also be about adapting. Founded in the USA, Uber was launched having the American reality, regulatory framework and culture in mind. But the world is wide, and people’s needs and likes, as well as regulation, change from country to country. Apps like Bolt, Grab, CarGo, TT Rideshare, 99, Ola and many others innovated and succeeded at it through picking a gamechanger idea and adapting it to certain countries or regions.
And there are certainly places where neither Uber, Bolt, or local apps are popular. Could that be the case of the place you live in? Maybe you have the opportunity to launch the perfect ride hailing app for your city or province – and make people’s lives easier!
* Beatriz Santos is the Chief Communications Officer (CCO) at We Are Innovation. She is based in Lisbon, Portugal. Beatriz started publishing articles through her University newspaper and eventually moved to national and international reach outlets, including the well known Portuguese outlets NOVO and Observador. Her professional career includes international communications experience with the ATREVIA agency and the European Parliament. She also has two published books and is an essential part of the Students For Liberty organization in Portugal. With a focus on positive change and global cooperation, Beatriz actively seeks partnerships across the globe to promote innovative initiatives.
Source: We Are Innovation
