Uber’s upstart European-based rival Taxify is planning on expands into more than 20 countries within the coming year. It will be operating outside of the biggest cities in the countries where it now into secondary markets.
The taxi-hailing platform is based in Estonia and active in Central and Eastern Europe as well as Africa. It has taken advantage of Uber’s massive missteps in 2017 and has begun expansion into some Western-European and Australian markets.
It will open in Lisbon, Portugal on Thursday, and build on moves in recent months into Vienna, Paris, and Sydney. Taxify bid to enter the highly competitive London market in September but was denied a license to operate. The company is still hoping to reverse the decision.
There are 40 cities on four continents where Taxify operates. It seeks to capitalize on mounting driver resistance to Uber in the newer markets it targeted. On the other hand, Uber is active in more than 80 countries and almost 700 cities.
The smartphone app company charges the drivers that sign up on its platform a 15 percent commission. In comparison, Uber charges a 25 percent cut of fares to the drivers who use its app to pick-up passengers.
Taxify is now looking to raise further funding in the current quarter. This might involve further investment by DiDi or new financial investors but will stop short of giving anyone majority control over the firm.
Taxify was able to strike a deal with China ride-hailing giant DiDi last year. The amount of financing was not disclosed but it was enough to give DiDi a minority stake in the company.
Taxify’s plans were announced by Chief Executive Markus Villig on Thursday.
The company is looking to raise $50 million, according to an unnamed source. Villig declined to comment on the status of the negotiations and said, “It makes sense to focus on growth right now rather than profitability.”
Uber pays $3 million to NYC Drivers
Uber was able to settle a lawsuit brought by thousands of New York drivers by agreeing to pay $3 million.
Drivers alleged that the ride-hailing company did not give them full payment of what they believe they were due. This included overtime and tips. Also according to them, the company charged them excessive service fees.
In the settlement, which was filed on Monday, Uber denied the allegations. It then agreed to settle in order to avoid further legal expenses.
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