Bolt Drive offers short-term car rentals via an app.

Company director Andrei Dementjev said: "We have slightly upped the number of cars, by a few dozen, as we see that demand for the service is constantly growing."

Bolt's own cars will be subject to the car tax as well.

"The car tax has played a certain role here, but it is rather more a combination of several factors – it was time to replace the vehicles in any case, and if we replace the same number of cars in the spring, we will acquire them with the tax already applied," Dementjev continued.

"However, given we are talking about hundreds of cars, it is, of course, a significant cost that we have to consider, including in pricing."

It remains a significant cost for private car users, too, he said.

"Most people underestimate how much using a personal car actually costs," Dementjev added.

"I think we have to concede that a rental car is a relatively affordable service. It works out cheaper than a taxi, in most cases cheaper than owning a personal car," adding for that reason the service's popularity will continue to grow.

"When we talk to our customers, we have been seeing more and more who have given up their personal cars, or practically no longer use them," Dementjev said.

He added that private, personal cars aren't worth it for anyone making fewer than 20-30 trips a month, due to the hidden costs.

For this reason, over the long run, the company expressed hopes that more and more will give up their own individual vehicles.

This is particularly the case with two-car households.

"More and more families, for example, are giving up their second car," he said.

Bolt Drive's fleet in Estonia comes to about 1,000 cars in total, primarily in Tallinn and Tartu, with plans to slightly increase the number of cars in the latter city.

Demand fluctuates throughout the year, the company says, and is higher in summer and lower in winter – save for a spike around Christmas time.

The number of vehicles available is adjusted to reflect this.

According to Dementjev, potentially expanding into areas just outside Tallinn, like Peetri and Maardu, depends on demand and competition. Come what may, the company is aiming to ensure cars are driven as much as possible.

The current economic situation has not led to a decline in demand for the service, Dementjev said; in fact if anything it has rendered it more affordable compared with the alternatives.

Bolt Drive's main competitor in Estonia is CityBee, also an app-based service. CityBee, too, has said it will boost its car fleet size.

Bolt also operates a taxi hailing service, which was its original business sector, as well as food couriering and, in the warmer months, e-scooter rentals.

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