Bolt said on Monday its cab fares 'automatically' increased after it lost a fifth of its drivers when renewals and applications for new work permits were rejected.
The spikes also came about due to increased demand by service users, while a number of drivers were leaving the industry of their own free will, a spokesperson told Times of Malta.
Last month the government said new applications - or attempts to change employer - by third-country nationals for cab driving and food courier work permits were being turned down because the market had "reached saturation".
Soon after, service users complained that Bolt's cab fares and waiting times had increased. In response, the ride-hailing platform claimed that the prices increased because of the government's clampdown on work permits.
But Employment Minister Byron Camilleri immediately warned cab operators to stop inflating prices in an attempt to continue with their practice of importing workers "haphazardly".
This tactic, introduced just days after the government imposed certain limitations, failed to make sense, he said last week.
Reacting, Bolt on Monday refuted "concerning allegations" that it had intervened to increase waiting times and pricing mechanisms as some sort of retaliation.
It said in a statement that like other platforms in the industry, Bolt used 'automated surge pricing' that matched customers’ demand with drivers’ supply, to make sure that the service worked properly. This meant drivers were incentivised - through higher earnings - to service high-demand locations at specific hours, preventing long wait times for customers.
While higher prices due to higher customer demand during tourist peak season are common, over the past week, Bolt's average ride prices were approximately 10% higher compared to the same period in 2023.
"This was due to a 19% 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% average turnover of personnel a month within the transport industry, according to Central Bank of Malta statistics.
"Conversely, demand for rides has increased by 23%, which is higher than what we have historically seen at this time of year. These dynamics have led to more frequent price spikes," Bolt said.
The spikes in prices and the impacted waiting times observed over the past few days were therefore linked to increased customer demand and a shortage of drivers, it added in the statement.
'Combination of rejected renewals and new applications'
When asked for clarification, a spokesperson said the 19% drop was the result of a combination of rejections not just of new applications, but also renewals of work permits.
Bolt has additionally received reports that drivers' temporary permits have been revoked while others are proactively leaving the industry because of concern about their future employment opportunities, the spokesperson added.
Bolt ends collaboration with 28 fleets
Bolt also announced that throughout the past seven months, it had ended collaboration with 28 fleets that were not up to standard.
Last month, minister Camilleri warned that companies accused of exploiting food couriers would be barred from hiring workers until investigations into exploitation claims were carried out.
On Monday, Bolt said its goal was to provide a reliable and affordable electronic platform where transportation services were made available to passengers while ensuring fairness for those who formed part of the marketplace.
"In 2024, Bolt ended collaboration with 28 fleets that did not meet Bolt’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 the 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," Bolt added.
Bolt said since it started operating in Malta in 2015, it has provided earning opportunities to thousands of drivers and couriers, and over 1,400 restaurant partners.
In 2023 it invested more than €25 million in the Maltese economy, it added.