Bolt, the global ride-hailing firm is seeking reportedly requesting credit support from the Estonian government after a move to quarantine-friendly services didn’t make up for lost revenue and it couldn’t access bank lending under existing state guarantee terms.
According to Bloomberg, the ride-hailing service formerly known as Taxify is asking for 50 million euros ($54 million) in loans through a state fund or public credit guarantees for bank financing.
Bolt will need at least 15 million euros per month after losing 85% of revenue. Bolt’s request to adjust the terms of the stimulus measures is in line with the general crisis environment “where all companies are struggling,” spokesman Marek Unt said. This is a “problem for the whole startup sector,” Unt said.
Bolt cut operating costs and expedited the opening of new services, including the launch of home food delivery and new courier service.
“Our internal measures have been effective both in terms of reducing costs and introducing new services,” Unt said. “We are considering all measures to successfully exit the crisis.”
Uber is also expanding a program for businesses to order food delivery to their employees’ homes in response to surging demand during the coronavirus pandemic.
Banks haven’t agreed to lend to Bolt, despite a guarantee from state fund KredEx, because they see the safety net provided by the existing terms as insufficient.
Jaan Lasmanov, another spokesman for the company, earlier cited stimulus packages targeted at startups by France and Germany as proof that “the startup sector needs a specific approach.”
The company, which was valued at over $1 billion last year, signed a 50 million-euro venture debt deal with the European Investment Bank in January. It was profitable in two-thirds of its markets at the end of 2019, according to Lasmanov.
