Uber beware: Didi-backed Taxify is coming after you in London
A new ride-sharing app is ready to give Uber a headache, at least in London.
Estonian company Taxify, backed by China's Didi Chuxing, is launching in the UK capital with the outright aim of snatching thousands of drivers and passengers away from Uber.
Operating in 19 countries across Europe, Central America, and Africa, Taxify has 3,000 potential UK drivers who have signed up ahead of Tuesday, Sept. 5, when it will start its service.
In order to encourage Londoners to download and use the app, Taxify is offering a 50% discount to riders during September.
Founded four years ago by 23-year-old university dropout Markus Villig, Taxify has 2.5 million customers and has raised a modest 2 million euros ($2.38 million) so far, while Uber has raised more than $15 billion.
Didi, who is leading the international fight against Uber, partnered with Taxify last month to invest and grow its presence across Europe, Africa, and Asia.
The company says it takes only 15% commission from its drivers, which is relatively low compared to 20-25% taken by Uber on fares.
"The lower commission allows Taxify to offer lower prices for riders and more take-home pay for drivers," Taxify says in a statement. "The service also allows drivers to create a defined radius for pick ups, meaning they don’t need to stray too far from home."
The app, which is available now on iOS and Android, is similar to Uber as passengers are able to order a cab to their location. But unlike Uber, passengers can also pay by cash.
“We have based our business around a sense of fairness and transparency and it is testament to our business model that we have had thousands of London drivers sign up to Taxify in such a short space of time," Villig said. "We are enormously proud to be offering more choice and improved quality of service to riders.”
Uber has been facing crisis after crisis at home and was forced to cede its efforts and bow to Didi in China after a long battle that cost the company millions and millions of dollars.
Since then, Didi has continued to dominate ride-hailing in China. The app raised $5.5 billion in April and was valued at $50 billion—compared to Uber's $70 billion.
Topics Uber
