Ride-hailing company Bolt has stated that Government’s recent rejection of temporary work permits, together with a rise in demand for rides has led to an increase in prices by 10 per cent.

A spokesperson from Bolt said that the increase in ride prices has also been prompted by a number of drivers leaving the industry out of their own free will.

Last month, Government stated that it has tightened its criteria for work permit approvals, with hundreds of migrant workers reporting that their renewal application was refused, forcing them to leave the country. Government stated that this was being done because the market for cab drivers and food couriers had reached saturation.

Many users noticed that since then, Bolt’s prices and waiting times have gone up drastically.

Reacting to this, Bolt’s spokesperson refuted the claims that it has intervened to increase waiting times and pricing mechanisms as “some sort of retaliation” to Government’s crackdown of TCNs. “We refute these unfounded claims and want to provide the facts about how our marketplace operates,” they continued.

The spokesperson said that like other platforms in the industry, Bolt makes use of “automated surge pricing” that matches customers’ demand with drivers’ supply to make sure the service works properly, “namely that the drivers have incentives through higher earnings to service any particular high-demand location at specific hours, preventing long wait times for customers.”

It was noted that while tourist peak season leads to higher prices, during the past week, there was a 10 per cent increase in average ride prices when compared to the same period in 2023, the spokesperson stated.

"This was due to a 19 per cent decrease in the number of available drivers on our platform, linked to the rejection of temporary work permits of hundreds of drivers, as reported in the media. This is further compounded by an endemic 7.9 per cent turnover of personnel on average a month within the transport industry, according to statistics of the Central Bank of Malta.”

“Conversely, demand for rides has increased by 23 per cent, which is higher than what we have historically seen at this time of year,” they added.

The spokesperson said that the increased customer demand and shortage of drivers have both led to the spikes in prices and the impacted waiting times.

Additionally, Times of Malta recently reported that several agencies employing third-country nationals (TCNs) as cab drivers and food delivery couriers were raided by Jobsplus officials searching for evidence of illegal labour practices.

Bolt’s spokesperson stated that in 2024, it ended collaboration with 28 fleets which did not meet the platform’s standard of engagement. “Bolt will continue to terminate its agreements with any fleet or individual operators if they are found to be in breach of applicable law or are involved in any kind of malpractice in breach of their contract.”

“Our team regularly engages with fleet operators to champion fair and transparent work conditions and is committed to doing more to ensure that all fleet operators using the Bolt platform uphold the highest legal and ethical standards, addressing drivers’ and couriers’ concerns,” the Bolt spokesperson continued.

They continued by saying that it is actively cooperating with Government on immediate actions to keep offering services to customers whilst also continuing to provide earning opportunities to people living in Malta.

The company stated that it has had a presence in Malta since 2015 and last year it invested more than €25 million in the Maltese economy.