Estonian super-app Bolt is investing 300 million baht to strengthen its footprint in Thailand as part of its Southeast Asian growth strategy.
The move came after it raised €628 million, at a valuation of €7.4 billion, for geographical expansion.
The company's expansion continues the intense competition in the local ride-hailing business, with newcomers grappling with dominant players such as Grab, Line Man Taxi and Air Asia.
Ride-hailing services are growing again following the pandemic.
Last year Grab Taxi (Thailand), the local operating unit of Grab, posted a profit of 576 million baht, its first time on the positive side of the ledger after operating here for a decade. The group also targets a profit this year.
Thailand is an important market for Bolt because of its existing ride-hailing service demand, its economic expansion and its status as a tourism hotspot, Nathadon Suksiritarnan, the company's Thailand manager, told the Bangkok Post.
Thailand is the only country in Southeast Asia in which the company has a presence.
Mr Nathadon said the country's ride-hailing sector still has an opportunity to grow to half of the population, up from less than 10% at present. He said the ride-hailing market in Thailand could grow to 160 billion baht, up from 78 billion, in five years with a compound annual growth rate of 9.4%.
Prior to Bolt, Mr Nathadon was a manager at Ernst and Young (Thailand), where he had a track record in strategy and transactions, modelling, financial due diligence and analysis, and project management.
Bolt is investing 300 million baht in Thailand over the next three years. The funds will be used to expand Bolt services and create opportunities for new drivers to join the platform in 2023, he said.
Bolt expects the number of drivers on the platform to double by the end of the year.
Mr Nathadon said Bolt has offered a ride-hailing service in Thailand since the middle of 2020, with triple-digit growth every year. The company received a ride-hailing licence to operate from the Department of Land Transport.
The service is helping to drive economic growth by creating job opportunities and smart mobility solutions, he said.
Bolt is aware of market competition in Thailand and wants to be an alternative choice for consumers, creating healthy competition, said Mr Nathadon.
Bolt has a unique way of doing business, focusing on what he calls "gravity", meaning wise and selective investments as well as a lean and flexible operation.
"That's why we could operate without charging commission fees to our drivers over the past few years, offering competitive fares to passengers," said Mr Nathadon.
From June 12, Bolt will start collecting a 15% commission fee from its drivers.
He said the fee will be reinvested to create new features, such as allowing customers to reserve the service in advance.
The company offers the ride-hailing service in Bangkok, Phuket and Chiang Mai.
The main passengers are still youngsters, and the firm will seek ways to woo other customer groups, said Mr Nathadon.
Bolt plans to offer soon a corporate mobility service for business users, he said. In other countries, Bolt provides food delivery services, scooter rentals and e-bike sharing.
"Our goal is to help people transition from private cars to shared mobility, while creating more earning opportunities in Thailand," said Mr Nathadon.
Bolt services are available in 45 countries and 500 cities across Europe and Africa, with more than 100 million customers. Globally, it aims to be profitable at the group level within 12 months, and said it does not need to raise new capital.