Ride-hailing app, Bolt, has denied engaging in discussions regarding a potential acquisition by Little Cab, another ride-hailing company in Kenya.
This denial comes after a report by Kenyan publication Business Daily claimed that both companies were in talks, which allegedly ended after the National Transport Authority of Kenya (NTSA) renewed Bolt’s annual operating license.
Bolt Kenya, responding to the rumors, clarified in an email to TechCabal. The company asserted that it has not participated in any discussions regarding a potential buyout and is not open to acquisition. While the company appreciates the interest expressed by its competitor, it remains committed to operating independently under the Bolt brand.
“Bolt has not engaged in any discussions regarding a potential buyout, as we are not available for acquisition. We appreciate the interest expressed by one of our competitors in our company; however, we remain steadfast in our commitment to operate within the market under the Bolt brand.”
Little Cab’s CEO, Kamal Budhabhatti, acknowledged sending a letter to Bolt proposing a “possible collaboration” between the two companies. Budhabhatti stated, “Bolt had gotten some challenges in getting the licence from the Kenyan transport authority. Such mergers and acquisitions have happened in other parts of the world like Southeast Asia between Uber and Grab.” He further clarified that the letter aimed to initiate discussions and was dropped after Bolt successfully obtained its license renewal.
In recent weeks, Bolt faced challenges during its license renewal process, which was temporarily halted by the NTSA due to multiple assault complaints from customers and riders. In response, Bolt removed the controversial and “illegal” booking fee and established a local office in Nairobi to address concerns raised by driver-partners.
Little Cab, operating in multiple African countries including Kenya, Uganda, Tanzania, Ethiopia, and Ghana, claims to have achieved profitability through bootstrapping and holds a valuation of approximately $200-250 million. Previously, the company had plans to sell a 25% stake to private investors with the aim of boosting its valuation to $100 million, but the sale was dropped due to its profitable status.
Meanwhile, Bolt, a European mobility platform providing ride-hailing, micromobility, food delivery, and grocery delivery services across 45 countries, recently faced a license renewal challenge in Kenya. The NTSA alleged that Bolt had violated transportation laws by charging unauthorized booking fees and commissions. Bolt has denied these allegations and is currently appealing the NTSA’s decision.
Despite the recent challenges, Bolt remains steadfast in its Kenyan operations. The company plans to invest in its services and expand into new cities. Bolt also intends to collaborate with the NTSA to find a resolution, allowing it to operate in Kenya legally and sustainably.
