Estonian startup Taxify just opened in Paris. It’s a ride-hailing company that is offering lower prices and taking a lower cut on each ride so customers end up paying less and drivers make roughly the same money.
There are so many transportation companies in Paris that it’s hard to keep track of all them. But two players seem to be standing out — Uber and Chauffeur-Privé.
Uber currently takes a 25 percent cut on each ride. Taxify only wants 15 percent of each transaction. This way, the young startup can also lower the prices by 10 percent.
For instance, for a €15 ride on Uber, driver ends up with €11.25. On Taxify, the same ride should cost more or less €13.50 and drivers make €11.48.
The company claims to be working with 5,000 drivers already. Taxify relies on professional drivers with a so-called VTC driver’s license.
That’s about all there’s to know. Just like on Uber, you enter your card in the app and you’ll be automatically billed at the end of the ride. Just like on Uber, you rate your driver. In fact, the design of the app looks like a copy of Uber’s previous app design. But competition is always a good thing.
Taxify is currently running a promotion. All rides are 50 percent off for the month of October. It should help the company when it comes to attracting its first users in Paris.
The startup is now live in a dozen countries in Europe and Africa. Recently, the company launched in London by acquiring a taxi company and its license to operate.
Days later, the company had to halt its operations in London as Transport for London says Taxify doesn’t have the proper license to operate.
From what we’ve heard, Taxify has “started a dialogue” with Transport for London. The company hopes to launch again soon but the process is still “ongoing.”