Estonia's leading taxi-hailing service Bolt has announced that it has acquired Danish taxi startup Viggo for an undisclosed amount. This is the first acquisition in Bolt's history.
Founded in 2019, Viggo has 300 electric cars and a user base of 450,000 in Copenhagen and Aarhus. This acquisition will mark Bolt's first entry into the Danish market. The company previously offered an electric bike rental service in Copenhagen.
Bolt CEO: "Viggo impressed us"
Bolt founder and CEO Markus Willig has previously stated that they are open to acquiring interesting startups, but have very high selection criteria.
"We have always conducted M&A transactions with high standards. We share Viggo's mission to improve cities and we are impressed by their all-electric operation. As a result of this acquisition, we will become the largest taxi-hailing operator in Denmark," Willig said.
Bolt has also announced a partnership with another major taxi service in Denmark, Taxi 4x27. The company’s fleet of over 600 taxis will now be integrated into the Bolt platform.
Bolt’s Global Growth
Started in 2013, Bolt has expanded its service area over the years. The company currently operates in over 600 cities in 50 countries and offers the following services:
Taxi hailing service
Electric scooter and bike rental
Food and grocery delivery
Car sharing service
Competition in Denmark: Uber and Bolt’s New Strategy
Denmark is one of the countries with the most stringent regulations on the taxi market, which has made it difficult for international platforms like Uber and Bolt to enter the market.
Uber withdrew from Denmark in 2017. The company, which had about 2,000 drivers in Copenhagen, had to close its doors due to new laws governing the taxi industry.
However, in January 2024, Uber returned to Denmark, but with a different model – in partnership with existing taxi company Drivr. However, unlike Uber and Bolt’s strategies in other countries, it is reported that it will offer a service at standard taxi rates, without price competition.
How Will the Danish Market React?
Denmark is one of the few European countries that restricts international taxi companies. As a result, taxi services in Denmark are more expensive than in other countries.
Bolt’s entry into the market with a different strategy, in partnership with Viggo and Taxi 4x27, will create a new competitive environment in the Danish taxi ecosystem. How this will affect the local market and pricing policy is still unclear.
