In the business world (and beyond) everybody loves the success story of an underdog.
Estonias Bolt is one such example.
Thestartupwas founded in 2013 by then 19-year-old Markus Vilig with 5,000 in his pocket.
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Adequate supply of drivers and existing competition are also key factors impacting a markets attractiveness.
A highly fragmented market doesnt present a beneficial opportunity, according to Fittipaldi.
Instead, tapping into a monopolised market is significantly more favourable.
This leaves room for competing services that aim for faster vehicle arrival times (ETA) and greater affordability.
The connection effect is how we build up, Fittipaldi says.
The idea is simple: more riders attract more drivers and more drivers improve the service for riders.
In turn, higher service quality attracts more riders, which engages more drivers.
But according to Fittipaldi, the companys primary aim isnt taking away a part from a rivals market share.
Its expanding the market itself by bringing in new customers.
The environmental benefit is only one part of the equation, Fittipaldi says.
In the UK, for example, there are more favourable conditions.
The situation is different in Cyprus, where only taxi licence holders are eligible.
Meanwhile, Bolt will also have to navigate upcoming rules on gig worker rights in its home markets.
The legislation is now pending approval by the European Council.
Estonia hasreportedlybeen among the EU countries opposing the change, calling for less comprehensive rules.
According to Fittipaldi, regulation is one of the biggest challenges Bolt is facing in the European market.
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW.
With a background in the humanities, she has a soft spot for social impact-enabling technologies.
