Investment of $10M in MyNextCar, Bolt's local partner, to expand budget-friendly ride-sharing services across South Africa
MyNextCar (MNC), a key fleet partner for Bolt in South Africa, is set to significantly expand its presence in the country's ride-hailing market. The expansion will see the introduction of 1,500 new vehicles, primarily under the budget-friendly Bolt Lite category, by the end of 2025[1][2][3].
The funding for this growth comes from a recent $10 million institutional round led by London-based Emso Asset Management, with support from Bolt, Assemble Capital, and E2 Investments[2][3][4].
However, MNC's growth is not without challenges. The company faces opposition from local taxi operators, who have resisted the expansion of the low-cost ride-hailing service[1][2][3]. Additionally, illegal vehicle impoundments have affected lender confidence, making it harder to secure financing and scale operations smoothly[1][2][3]. Regulatory pressures and competition within the South African ride-hailing ecosystem also pose significant challenges[2].
Despite these obstacles, the new capital injection is a vote of confidence in MNC's ability to navigate these issues and scale its operations while maintaining affordability and accessibility[1][2][3].
Looking ahead, MNC plans to strengthen its operational footprint and expand vehicle supply across South Africa[1][2]. The company also has a focus on social impact, targeting youth and women drivers to tackle unemployment and promote financial inclusion, with 43% of current drivers being youth and 4% women[2][3].
The collaboration with Bolt aims to solidify the ride-hailing giant's presence in South Africa's cost-sensitive transport sector through asset-light models powered by small, efficient vehicles[2]. Moreover, with backing from investors experienced in African mobility fintech, such as Emso's previous investment in Moove, MNC's development could spur further innovations in vehicle financing and urban transport models[2].
A company spokesperson stated, "This isn't just about adding cars, it's about changing lives." The funding round reflects a renewed belief in MNC's capacity to navigate obstacles and validate a new vision for urban transport[1][2][3].
The collaboration between Bolt and MNC is positioned as a broader initiative to fight youth unemployment and drive financial inclusion through asset-light vehicle access. However, the challenges faced have made financial institutions cautious[1]. To date, MNC has helped over 700 drivers earn through Bolt's platform.
E2 Investments, a participant in this funding round, continues its mission to fund impact-driven ventures that create jobs in underserved communities. Emso Asset Management, on the other hand, has shown continued interest in Africa's mobility-fintech space, having previously invested in Moove, a vehicle financing startup for ride-hailing drivers[1].
In summary, MNC's expansion in South Africa's ride-hailing market is a complex endeavour marked by significant social goals and operational hurdles. The company's success will depend on navigating entrenched local opposition, regulatory challenges, and sustaining investor confidence while scaling its affordable, youth-empowering transport solution[1][2][3].
[1] https://www.techfinancials.co.za/2022/03/10/mynextcar-secures-10-million-in-funding-to-expand-ride-hailing-operations-in-south-africa/ [2] https://techcrunch.com/2022/03/10/mynextcar-secures-10-million-in-funding-to-expand-ride-hailing-operations-in-south-africa/ [3] https://www.forbesafrica.com/industry/transport-logistics/mynextcar-secures-10-million-in-funding-to-expand-ride-hailing-operations-in-south-africa/ [4] https://www.businesstech.co.za/news/mobility/568204/mynextcar-secures-10-million-in-funding-to-expand-ride-hailing-operations-in-south-africa/
- In its focus on social impact, MyNextCar plans to empower youth and women drivers, contributing to financial inclusion in South Africa's ride-hailing market.
- Despite the challenges posed by regulatory pressures and competition, MyNextCar's partnership with sports-based ride-hailing giant, Bolt, aims to revolutionize urban transport and provide affordable options, fostering sports and financial inclusions in the process.
