Uber’s European rival Bolt launches in London

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Uber’s European rival Bolt is now taking it on in the streets of London.

The Estonian ride-hailing company formerly known as Taxify announced its launch in the U.K.’s capital city Tuesday. It joins a growing list of start-ups trying to take market share from Uber in the London metropolitan area.

“We see this as quite a monumental thing for both the company and the ride-hailing industry as a whole,” Bolt CEO Markus Villig told CNBC in an interview. “London is one of the biggest, most profitable markets for Uber globally and one where it didn’t have a serious competitor.”

Villig, who founded the company in 2013, said more than 20,000 drivers have already signed up with Bolt ahead of Tuesday’s launch. There were an estimated 87,900 private hire vehicles licensed in London as of March 2018, according to the Department for Transport.

Bolt operates in 30 countries and 100 cities with 25 million customers globally. The Estonia-based company reached a valuation of $1 billion last year, entering an exclusive club of European tech unicorns. Villig said Bolt has won over drivers and passengers with lower fees and commissions across Europe and Africa.

“We focus on markets where Uber used to have a monopoly and then we come in with a much better offering for drivers,” he said.

Bolt takes a 15% commission from drivers per ride, which it says allows drivers to earn over 10% more on average compared to other platforms. Last month, some Uber drivers in London went on strike demanding that the company lower its commissions from 25% to 15%.