Nigeria is Africa’s most populous country and one of the largest e-hailing markets in Africa. By the end of 2024, the ride-hailing market in Nigeria is estimated to generate $252. 7 million and account for 15 percent of the African continent’s 48.6 million e-hailing user base.
The sector is expected to exhibit an annual growth rate of 10.74 percent between 2024 and 2028, leading to a projected market size of $380 million by 2028. Despite challenges posed by poor infrastructure and security concerns, ride-hailing services in Nigeria continue to grow due to high demand for affordable transportation options.
Through the years, the face of transportation in a state like Lagos, the country’s commercial centre has experienced transformations. From car-sharing platforms to motorcycle-hailing services, bus-hailing, as well as tricycle solutions, players in the space have made their open market debuts in recent times.
Prior to the emergence of the ride-hailing industry, commercial buses and cars with the yellow signature colour and the ramshackle molue were the major means of public transportation in the state.
However, in 2008, after the initiative to build the bus rapid transit system was instigated by the then-incumbent government, Lagos launched the first of many public-private partnership initiatives – Lagos Bus Rapid Transit (BRT).
Following the successful deploration of the initial BRTs across Lagos, which to an extent, cushioned the uneasy transport system that was fast choking out millions of commuters on a daily basis, subsequent government administrations entered more private-public partnerships (PPP).
The collaboration looks to provide more of such buses all in a bid to alleviate the transportation plight of Lagosians who couldn’t afford personal vehicles. Although the buses ply some of the busiest routes in the state, they could barely sustain the increasing commute needs of Lagosians.
In 2016, a game-changer entered the Nigerian market. Bolt, formerly Taxify, transformed the ride-hailing industry, offering Nigerians a new way to move. The official launch of Bolt in Nigeria offered a fresh alternative to traditional taxi services.
Affordability, safety, and reliability quickly resonated with Nigerian riders and drivers alike. Over the years, the ride-hailing company connected people and places like never before, from Lagos to Port Harcourt and from Abuja to Benin. Fast-forward to 2024, Bolt has significantly expanded its market presence in Nigeria, extending its services to 33 cities and urban centres. The company’s strategic expansion initiatives have enabled it to reach a wider audience and cater to the growing demand for convenient and affordable transportation solutions.
As with any business operating in a dynamic market environment, Bolt has had to adapt to changing market dynamics and consumer preferences. This includes adjusting its business model, optimising operational efficiency, and exploring new avenues for growth and revenue generation.
Looking ahead, Bolt is well-positioned to capitalise on opportunities for further expansion and growth in Nigeria’s transportation sector. With its strong brand presence, loyal customer base, and strategic investments in technology and innovation, Bolt remains a key player in shaping the future of urban mobility in Nigeria.
