Uber’s main rival in the UK, Bolt, has announced plans to move into the rapidly expanding grocery delivery sector as it achieved a valuation of $4.75 billion.
The European ride-hailing company said it has raised $713 million in a funding round led by venture capital firm Sequoia and fund managers Tekne and Ghisallo.
The latest round of investment has left Bolt valued at more than double its last private valuation of $2 billion.
Bolt has said it plans to move into the grocery delivery sector after its new-found investment.
The company has said it plans to roll out a grocery delivery service to 10 European countries over the next few months which include Portugal, Croatia and Sweden, promising to deliver goods in 15 minutes.
The Uber rival has diversified its services to include electric scooter and bike rental, car sharing and now food delivery as it hopes to become a “super-app”.
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“Bolt’s mission is to make urban travel affordable and sustainable,” Bolt chief executive Markus Villig said.
“We are building a future where people are not forced to buy cars that cause traffic and pollution, but use on-demand transport when they actually need it.”
Like many of its competitors it suffered a loss of revenues during the pandemic, however it is showing signs of recovery and now has over 75 million users in over 45 countries across Europe and Africa.
The news comes as the ride-hailing industry in the UK has been hit with uncertainty after the Supreme Court ruled that Uber’s riders must be classified as workers instead of independent contractors.
Uber has since reclassified its employees as workers instead of gig-economy riders and is calling on its main rivals to do the same.