Bolt Food is a food delivery service from Estonian ride-hailing company Bolt.
Competition in Europe’s food delivery market is getting even more heated.
Uber rival Bolt announced Wednesday it will launch a food delivery service in Tallinn, Estonia, where it is headquartered. The Estonian start-up said it would expand the service to Latvia, Lithuania, and South Africa later this year before launching in more markets in Europe and Africa in 2020.
Bolt, formerly known as Taxify, is entering an already-crowded field of competitors in the European food delivery market. Uber Eats and Amazon-backed Deliveroo are aggressively expanding across the region, while Britain’s Just Eat recently agreed to merge with Amsterdam-based Takeaway.com to create the biggest food delivery company outside of China.
Bolt Chief Product Officer Jevgeni Kabanov said in a press release Wednesday the company’s strategy with food delivery will be to build on its existing 25 million users and offer lower prices compared to competitors. The company has taken a similar approach in the ride-hailing market by offering steep rider discounts and higher driver commissions. Bolt said the food delivery service would be available through a separate app called Bolt Food.
Ride-hailing companies have struggled to cook up profits in the food delivery market thanks to high overhead costs. Earlier this month, Uber CEO Dara Khosrowshahi said he doesn’t expect the company’s Eats business to be profitable in the next two years.