Bolt Kenya has entered the competitive grocery delivery market in Nairobi with the launch of Bolt Market, a service integrated into its Bolt Food app. The move is part of Bolt's strategy to expand its services, grow its market share, and establish itself as a trusted platform for convenient, on-demand grocery delivery.

The grocery delivery market in Nairobi is smaller compared to food delivery, with few players, including supermarket chains like Naivas and Carrefour, having ventured into it with varying levels of success. The high cost of delivery, which can cost over KES 100 ($0.77) per delivery, makes it less appealing to most residents, who prefer buying affordable groceries from roadside stalls, popularly known as "vibandas." However, residents in upscale neighborhoods, where such stalls are scarce or unavailable, are the primary target customers for online grocery shopping.

The COVID-19 pandemic has spurred a shift towards online shopping, with 9.3% of Kenyans shopping for food and groceries online as of 2023. This number is projected to reach 16.7% or 10.5 million consumers by 2027, driven by the demand for convenience and efficient delivery services. Bolt Market is a push to diversify Bolt's services beyond ride-hailing and challenge established players in a market where speed and convenience are key.

Bolt Market is currently available in Nairobi's upscale Kilimani area, targeting customers within a 10-kilometer radius of its store, including Upper Hill, South C, and Riverside. Customers using the Bolt Food app can order groceries from 8:00 AM to 11:00 PM or schedule deliveries 24 hours in advance. Bolt is also offering free delivery within a 3-kilometer radius and discounts of up to 80% to attract customers.

The launch of Bolt Market reflects the harsh realities of the logistics business in Kenya, where similar businesses have failed. With many consumers preferring affordable "vibandas," the market is niche and relies on upscale areas where convenience and reliable service outweigh cost concerns. Bolt's cautious launch in Kilimani is designed to gather data on service efficiency, customer satisfaction, and market viability before expanding further.

Bolt Market claims to have access to over 2,000 products, including fresh produce from local suppliers, household essentials, and beverages. The company sources groceries locally to ensure supply consistency, employs AI logistics for delivery optimization, and enforces quality checks throughout. Bolt Market is also exploring new pricing strategies, such as discounts based on order size and distance, and hinted at future subscription plans to offer regular customers predictable pricing and cost savings.

Expansion beyond Kilimani to estates like Parklands, Eastleigh, and Lavington is planned, with a later rollout outside Nairobi in the pipeline. However, there are no set timelines. For now, Bolt Market will use data from Kilimani to refine its service and determine customer response to pricing in a competitive and price-sensitive market.

The success of Bolt Market will depend on its ability to navigate the challenges of the logistics business in Kenya, including high delivery costs and competition from rivals like supermarket chains, Glovo, and Uber Eats. If successful, Bolt Market could establish itself as a major player in the grocery delivery market in Nairobi, providing a convenient and reliable service to customers in upscale neighborhoods.