European Uber rival Bolt raises more than $ 180 million for AI drive

LONDON – Bolt, a European competitor to the riding giant Uber, said on Wednesday it had raised 150 million euros ($ 182 million) to bolster the security of its platform through facial recognition and artificial intelligence.

The Estonia-based company declined to disclose its valuation, but said it exceeded the $ 1.9 billion it was worth following the $ 100 million convertible bond issue in May.

Bolt’s latest round of funding was led by D1 Capital Partners, the hedge fund of US billionaire Daniel Sundheim. Darsana Capital Partners, another hedge fund, also invested.

Bolt said it would use the money to improve its safety features and expand its electric bike and scooter rental and food delivery services. The company’s app now has more than 50 million users in more than 40 countries in Europe and Africa.

“By 2021, we will double to become the market leader in platform security and quality,” Markus Villig, Bolt’s CEO, said in a statement.

“We plan to launch even more innovative solutions, such as driver face verification and automatic trip monitoring, using machine learning to prevent potential incidents and ensure the highest quality of service to our customers.”

Ride-hailing services have been hit hard by the coronavirus pandemic this year, with Uber reporting two consecutive quarters of declining revenues and cumulative losses of $ 5.8 billion for the year so far.

Ride-sharing demand fell off a cliff as consumers were forced indoors due to government lockdown measures. However, Uber has benefited from the rising demand for food delivery services.

Bolt, which is backed by German carmaker Daimler and Chinese rhythm master Didi Chuxing, similarly saw its revenues drop as coronavirus restrictions tightened across Europe. In March, the company’s sales fell 75% compared to the previous month.

But Bolt claims it has had a good year thanks to investments in newer product lines such as scooters and food delivery. The company launched a new e-scooter model earlier this month and has committed to invest $ 100 million to bring scooters to more markets.

“Despite the impact of the COVID-19 pandemic, Bolt has grown tremendously in the past year,” said Villig. “We have nearly doubled our number of customers and launched our services ranging from driving to micro-mobility and food delivery in 50 new cities.”