Bolt Pilots Lagos Dynamic Commission Model, Offers Drivers 7.5% Rates for High Performance

Bolt, the ride-hailing and delivery platform, is piloting a dynamic commission model in Lagos, Nigeria, aimed at reducing platform fees for high-performing drivers. The initiative, announced by Country Manager Osi Oguah, adjusts commission rates based on real-time demand and driver activity to increase earnings for drivers who meet performance metrics like availability, response time, and customer ratings [1]. Under the structured framework, drivers in the pilot could see commissions as low as 7.5%, though the company emphasizes that rates vary within a defined range to maximize earnings without penalizing performance [1]. The model is designed to address long-standing driver concerns over commission rates while improving ride availability for passengers.

The pilot follows years of protests by Nigerian e-hailing drivers, who have demanded lower commissions amid rising fuel costs and operational challenges. In 2023, the Amalgamated Union of App-based Transporters of Nigeria (AUATON) warned of a mass exodus from platforms like Bolt unless commissions were slashed to 5% [1]. This pressure intensified after a sharp increase in premium motor spirit (PMS) prices, which eroded drivers’ profit margins. While Bolt’s current model does not implement a blanket reduction, it introduces a tiered structure that rewards top performers—a departure from previous strategies. For instance, in 2022, Bolt offered a 15% commission kickback bonus to drivers who met daily trip thresholds, acceptance rates, and completion rates [1].

The new approach reflects broader trends in the gig economy, where platforms seek to balance driver satisfaction with profitability. By incentivizing high-performing drivers, Bolt aims to create a feedback loop: increased earnings could boost driver availability and response times, enhancing passenger experiences and attracting more users. However, the success of the pilot hinges on factors such as the proportion of eligible drivers, the financial impact on Bolt’s margins, and potential unintended consequences, such as reduced participation among lower-performing drivers [1]. The company acknowledges that change can raise concerns and has pledged to monitor driver feedback during the testing phase, adjusting the model as needed to ensure fairness and sustainability [1].

Lagos, a key market for Bolt’s African operations, presents both opportunities and challenges. The city’s fragmented transportation sector and competitive landscape require localized strategies to stabilize driver retention and improve service quality. If the pilot proves effective, the model could be replicated in other African cities where Bolt operates. The company’s ability to maintain equilibrium between driver incentives and platform sustainability will be critical to scaling the initiative.

Bolt’s dynamic commission model underscores its commitment to adapting to the evolving needs of drivers and passengers in a challenging economic environment. As the pilot progresses, the company’s engagement with driver-partners and willingness to refine the model will determine its long-term viability.

Source: [1] [Bolt is testing new model that will reduce commissions for high-performing drivers in Lagos] [https://coinmarketcap.com/community/articles/68879e52fb9c334040026052/]