Bolt’s Disruption of Ride-Hailing Market Prompts New Legislation
Summary:
On 17 November 2024, the Minister of Transportation, Rached Amri announced that his Ministry will examine complaints from Tunisian citizens related to the local operations of ride-hailing application, Bolt.
The Minister said during a parliamentary session that the government cannot ban the Estonian-based software company from offering its application in Tunisia, nor any similar software, as some citizens are demanding, but will instead explore a new legal framework to regulate similar platforms, specifically their pricing methods.
These statements come as some Tunisian citizens have complained about taxi drivers refusing to accept passengers hailing rides on the street, preferring to take Bolt users which are more profitable for the drivers. Other complaints concern taxi drivers raising prices to match Bolt prices in non-compliance with current regulations.
Outlook:
The growing angst over Bolt highlights the challenges faced by disruptive companies in Tunisia where protected markets are vulnerable to the impacts of innovation and adaptation to consumer demands.
The current administration and the Parliament face the challenge of balancing a vision for attracting business and innovation to Tunisia while also holding that in tension with laborers, unions, and consumers who experience the power of market disruption in their daily lives.
The Bolt app has been widely discussed in social media for months and, in tandem with rising prices in general, the government feels pressure to provide a solution. As Bolt has become increasingly popular, largely due to its convenience and reliability in contrast to the notoriously unreliable taxi service around Tunisia, the demand for legislation was inevitable.
However, it is unlikely that the issue will be resolved in the short term as the legislation is set to be completed in the first semester of 2025, according to the Minister of Transport. In the meantime, Tunisia’s public transport system and services continue to experience challenges that have been the subject of critics for years.
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