Estonian International Transport Network Company Taxify has launched this week in London, UK capital after it has previously operated in 18 countries and 25 cities in Europe, Western Asia, Africa and Mexico.
It is speculated that their next target is the magnificent Paris. This new development will put the company in competition with Uber, black cabs, Addison Lee, Gett, and Hailo.
The company made its entrance by signing up 3,000 private hire taxi drivers from a local licensed taxi company, city Drive services and launched their services by giving a whopping 50% discount on all ride prices as well as removal of price surges till the end of the month.
Uber The Most Popular In The UK
Uber being the more popular and larger transport Network Company in London has about 400,000 drivers, 3 million riders and 600 cities globally compared to Taxify with only 25 cities globally. Despite this, Taxify boasts of lower cost business model, cheaper prices, takes lesser percent commission on rides (15% compared to Ubers 20%), collects electronic payments and cash payments as opposed to Uber’s strict policy of cash payments alone and allows drivers to specify a particular pickup coverage area as well which may be appealing to some drivers.
The CEO of the company, Markus Villig stated that the company aims to overtake Uber in several big cities in Africa by 2017 and its launch in London, a huge and thriving hub for luxury modern transport is a big and exciting step for the company.
The company’s second focus is setting up its local franchise which allows for partners to become a city manager by sharing profits and losses as stakeholders in the company. The startup is said to have over 2.5 million customers, and recently announced a strategic partnership with Didi Chuxing, a major ride-sharing company, providing transportation services in China.
Uber is currently facing several setbacks from driver’s opposition to legal issues, workplace harassment scandals and disputes among the board members, and to combat this problem and bring stability to the company, it fired its belligerent co-founder and chief executive Travis Kalanick in June replacing him with Dara Khosrowshahi, the former CEO of Expedia.