Taxify takes on Uber in crowded London taxi-hailing market

Taxify takes on Uber in crowded London taxi-hailing market

Estonian start-up Taxify is to go head to head with Uber in London’s highly competitive taxi-hailing market, and also has Paris in its sights.

Taxify said it will launch services across London on Tuesday after signing up 3,000 private hire taxi drivers, who have been vetted to ensure they meet local licensing requirements. It marks a major move forward for Taxify after missteps by the Silicon Valley giant already allowed it to make inroads in several cities in central and eastern Europe and Africa.

In London, it enters a crowded market where the city’s famous black cab taxi drivers and private hire taxi firms such as Addison Lee compete with ride-hailing apps including Gett and Hailo, which is now part of Daimler’s MyTaxi. Uber counts 40,000 drivers and has 3 million London users, who take 1 million trips a week.

Taxify is a fraction of Uber’s size – being active in just under 25 cities compared to Uber’s presence in nearly 600 cities worldwide – but runs on a lower cost business model, allowing passengers to pay marked-down fares and letting drivers retain a bigger share of the profits.

Taxify said on Monday it would take a 15 percent commission on rides booked through its online platform, versus the 20-25 percent Uber charges in London. Taxify also said it will accept cash as well electronic payments from riders, unlike Uber. “We will always be cheaper than Uber,” company founder and Chief Executive Markus Villig said in a telephone interview with Reuters.

Continue reading: https://www.reuters.com/article/us-uber-competition-taxify/taxify-takes-on-uber-in-crowded-london-taxi-hailing-market-idUSKCN1BF1RK

  • A Taxify cab drives in Tallinn, Estonia, June 13, 2017.

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