From Earnings to Trends: What Bolt's Data Means for UK Taxi Drivers

The ride-hailing industry, a pivotal component of the modern transport landscape, has become a dynamic sector that drives significant economic change.

The Ride-hailing Economy Report, by Bolt based on insights from over 40,000 drivers across 25 countries, sheds light on the trends, motivations, and demographics of this expanding workforce.

The report reveals who these drivers are, why they choose ride-hailing, and how shared mobility is transforming urban travel.

This article delves into key findings from the report and explores the future of ride-hailing as both a career option and a vital contributor to urban transport systems.

Who Are Ride-Hailing Drivers?

The global pool of ride-hailing drivers is as diverse as it is vast. One of the standout features of this sector is the varied backgrounds of its participants. Drivers in this field are typically young, multilingual, and often highly educated, providing a unique service experience for passengers.

• Youthful Demographics: Around 78% of drivers are under the age of 44, a statistic that underscores the sector's appeal as a solution to youth unemployment. For many, ride-hailing offers a flexible entry point into the workforce, enabling younger individuals to earn an income while pursuing education or other career goals.
• Education Levels: A significant portion of drivers hold higher educational qualifications. More than 30% possess a bachelor's degree or higher, and almost 1% have a doctorate. This suggests that ride-hailing serves not only as a source of immediate income but also as a stepping stone for individuals advancing in their professional careers.
• Multilingual Workforce: With drivers speaking over 140 languages globally, the industry is characterized by an impressive degree of linguistic diversity. Approximately 70% of drivers are multilingual, enhancing the customer experience by offering services in various languages and bridging communication gaps across cultures.
• Gender Imbalance: Despite the industry's growth, women remain underrepresented, making up less than 5% of the global driver workforce. However, initiatives like Bolt's "Women-Only" ride type are working to address this imbalance by offering more accessible and flexible earning opportunities for women.

Why Drivers Choose Ride-Hailing

The flexibility, accessibility, and earning potential offered by ride-hailing are among the top reasons why people choose to drive for these platforms.

• Flexibility is Key: Flexibility stands out as the primary reason people become ride-hailing drivers. The ability to set their own hours allows individuals to balance driving with other life responsibilities, including family care and studies. In fact, 62% of drivers have caregiving responsibilities, either for children or elderly relatives. Additionally, many drivers have other full- or part-time jobs, or even own businesses, and rely on ride-hailing as a supplementary income stream.
• Competitive Earnings: For many drivers, ride-hailing offers competitive wages. In Europe, drivers earn an average of 47% to 78% more than the minimum wage in their respective countries. These figures highlight the financial benefits of driving for ride-hailing platforms, which provide opportunities for substantial earnings, particularly when combined with the flexibility to work across multiple platforms.
• Driver Satisfaction: Despite challenges, 66% of Bolt drivers report high satisfaction levels with the platform. This satisfaction is often tied to the financial rewards and the ability to maintain a work-life balance. Interestingly, 10% of drivers have been in the industry for over five years, with 61% staying for over a year, indicating the long-term viability of driving as a career choice.

The Impact of Ride-Hailing on Work-Life Balance

Ride-hailing has emerged as a significant enabler of work-life balance for drivers, offering the opportunity to adjust working hours around personal responsibilities.

• Supplementary Income: 25% of drivers have additional sources of income, such as other part-time jobs or businesses. This reveals that ride-hailing often serves as a supplemental income source rather than the primary source for many drivers.
• Flexible Hours: Flexibility is crucial to drivers. Over 30% of drivers who work or study alongside their ride-hailing activities cite flexibility as the key factor. For those with caregiving responsibilities, this flexibility is even more important, allowing them to work around family needs.

How Do Drivers Operate?

The operational patterns of ride-hailing drivers further highlight the flexibility and independence the profession offers.

• Self-Employed Model: The majority of drivers are self-employed and use their own vehicles, making it easier for individuals to enter the industry with relatively low barriers to entry. In the EU, 63% of drivers use multiple ride-hailing apps, maximizing their potential earnings by seeking the best opportunities across different platforms.
• Instant Payout Preferences: A significant portion of drivers, particularly in France (75%), prefer immediate payouts over benefits like health insurance or pensions. This preference reflects the importance drivers place on liquidity and immediate financial rewards over long-term benefits. Drivers appreciate the ability to access earnings as soon as they complete a ride, rather than waiting for monthly or biweekly payments.
• The Importance of Flexibility: Flexibility extends beyond scheduling. More than half (53%) of EU drivers have expressed that they would reduce their driving hours if they were required to follow a fixed schedule. A considerable number of drivers would also cut back on driving if fixed locations or monthly payouts were imposed. These factors demonstrate that the ability to control working hours and income is a fundamental part of the appeal of ride-hailing.

Ride-Hailing as a Key Component of Shared Mobility

The rise of ride-hailing is not just reshaping the livelihoods of drivers; it is also playing a pivotal role in the broader urban transport ecosystem. Ride-hailing is becoming an essential part of shared mobility, contributing to sustainable urban development.

• Shared Mobility and Sustainability: Ride-hailing is projected to account for 7% of urban journeys by 2030. This shift towards shared mobility can help reduce private car ownership, thereby alleviating traffic congestion and reducing carbon emissions. For example, 55% of Bolt users without a car believe that ride-hailing has made owning a private vehicle unnecessary. Furthermore, 9% of users have sold their cars due to the convenience and affordability of ride-hailing services, and 17% of car owners have considered selling their vehicles after using shared mobility options.
• Economic Impact: Ride-hailing platforms offer more than just income opportunities for drivers; they also contribute to the economy by reducing the costs of private car ownership. This trend has a ripple effect, influencing everything from personal savings to reduced urban infrastructure demand.
• Environmental Benefits: The rise in shared mobility may also play a role in creating more sustainable cities. By reducing the need for individual car ownership, ride-hailing services can contribute to lowering emissions, supporting cleaner urban environments.

The Importance of Upfront Earnings in the Ride-Hailing Industry

For many drivers in the ride-hailing industry, earning money upfront is often preferred over benefits like pension plans or holiday pay. While benefits such as Bolt’s "Bolt Boost" program—offering things like holiday pay and pension options—are attractive, they do not always meet the preferences of drivers. Feedback from Bolt drivers in the UK shows that 47% of drivers still prefer self-employment with low commission, which gives them the freedom to make their own arrangements for benefits and pension contributions.

This preference underscores a broader trend within the gig economy where workers favor flexible pay models that offer immediate compensation rather than deferred benefits. In addition, the option for a guaranteed income—such as Bolt Boost’s commitment to providing at least the National Living Wage—appears appealing. However, the average earnings of drivers on platforms like Bolt can be much higher, as evidenced by Bolt’s average hourly earnings in the UK of £25.32 per hour. This data suggests that many drivers value autonomy and control over their own financial futures, making upfront earnings a significant factor in their decision-making.

Analyzing Driver Earnings Across European Cities

The issue of driver earnings is not only a matter of preference but also of geographical and operational factors. Bolt’s partnership with Oliver Wyman in 2023 led to the creation of the ‘Shared Mobility Global Impact’ study, which shed light on the income dynamics of ride-hailing drivers across various cities. This comprehensive analysis included cities such as London, Paris, Stockholm, and Kyiv, providing insights into how operational costs, city-specific factors, and the type of vehicle used affect a driver’s bottom line.

Bolt’s earnings model is based on the assumption that full-time drivers work around 40 hours per week. It factors in variables like rides per hour, average trip distance, and the type of vehicle. Additionally, Bolt’s data shows that, in most cities, the average income of ride-hailing drivers exceeds national minimum wage levels. However, this is not universally true. In high-income cities like London and Paris, the average earnings of drivers can be below the average income due to the relatively high cost of living and competitive job markets. In contrast, drivers in Eastern European cities like Kyiv and Bucharest see significantly higher earnings compared to their national minimum wage, largely because of the lower cost of living.

Vehicle Ownership and Its Impact on Earnings Potential

One of the critical factors influencing earnings potential is the ownership model used by drivers. Bolt’s data reveals that owning a car can increase earnings by up to 53% in Kyiv and up to 77% in Riga compared to leasing or renting a vehicle. This difference primarily stems from the lower fixed costs associated with vehicle ownership, such as insurance and maintenance, which are much cheaper than the costs tied to leasing or renting.

This advantage is especially significant in cities like Prague, where the fixed costs of renting vehicles are more than 75% higher than owning a car. Ownership allows drivers to retain a more substantial portion of their earnings, which can significantly impact their financial well-being. However, the differences are not uniform across all cities. In more developed markets like the UK and France, ride-hailing operators like Bolt often offer mechanisms to help drivers transition into ownership, recognizing the benefits that ownership can provide for both drivers and platforms alike.

The Role of Electric Vehicles (EVs) in Boosting Driver Income

Electric vehicles (EVs) offer distinct advantages for ride-hailing drivers, particularly when it comes to operational costs. EVs typically have lower fuel costs than traditional internal combustion engine (ICE) vehicles. For instance, in cities like Paris, fuel costs for ICE vehicles can be almost double those for EVs, making EVs a more cost-effective choice for drivers. In Vilnius, EVs can generate an income surplus of up to 29%, reflecting their cost-effectiveness in the right infrastructure.

While EVs have higher upfront costs, technological advances and subsidies have made them increasingly accessible for ride-hailing drivers. In some markets, such as the UK, the initial cost of EVs may still be a barrier, but over time, as the technology improves and subsidies become more widespread, EVs are expected to become a more profitable option for drivers. Not only do EVs help reduce operational costs, but they also contribute to sustainability, a growing factor of importance for many riders.

The Low Barriers to Entry in Ride-Hailing

One of the defining features of the ride-hailing industry is its relatively low barrier to entry, which makes it an attractive option for many people seeking supplementary income. Ride-hailing platforms like Bolt provide a way for individuals, particularly migrants, to start earning without the need for extensive training or formal qualifications. In the UK, for instance, around 80% of Bolt drivers have a migratory background, with a similar trend observed in the Netherlands, where 50% of drivers are born outside the country.

Furthermore, ride-hailing offers a flexible work schedule, making it an appealing option for individuals who may have other commitments or are pursuing other business ventures. The gig economy, with its emphasis on flexibility, can act as an entry point for individuals looking to build their own businesses. This is especially apparent in countries like South Africa, where ride-hailing drivers have used their platform earnings as a springboard for launching businesses in other sectors like retail and catering.

Empowering Women in the Ride-Hailing Industry

While ride-hailing has been seen as a pathway for many, it remains a sector with significant gender disparities. Bolt acknowledges the need to encourage more female drivers to join the platform. Currently, less than 5% of drivers in most markets are women, though this figure is higher in countries like Portugal and Croatia. This is a notable improvement compared to the traditional taxi industry, but there is still much work to be done.

Bolt has implemented several initiatives to support female drivers, including female driver forums and events held in countries such as Portugal, Poland, and South Africa. The “Women for Women” feature, which allows female riders to request only female drivers, further enhances safety and comfort for women in the sector. These efforts are part of a broader push to create a more inclusive environment within the ride-hailing industry, ensuring that women have the same opportunities as men in this growing sector.

Ride-Hailing as a Pathway to Economic Empowerment

Beyond income generation, ride-hailing can provide valuable skills and opportunities for economic empowerment. Drivers in the sector often develop business skills such as financial management, customer service, and time management. These skills can serve as a stepping stone to other professions and business ventures. In many cases, drivers leverage their experience to expand into related fields like logistics, delivery services, and even fleet management.

Bolt has introduced the Accelerator Program to further empower its drivers, offering skills development courses and innovation funding to help them scale their businesses.

The program has already supported 30 businesses across Africa, focusing on innovative ventures like mobile apps for vehicle maintenance, EV charging stations, and new ride-hailing fleets. In addition, Bolt’s Academy has helped over 360 drivers improve their business skills, further promoting economic independence and entrepreneurial spirit in the gig economy.