Taxify steadily gaining ground in Africa as Uber falls victim of its pricing

Taxify, one of the fastest growing transport apps in Europe with over 1M customers in 15 countries is seeing a tremendous growth in Africa where Uber is falling prey of its own economics of price fixing.

Founded in Estonia in 2013, Taxify is building the market leading platform connecting people with taxis and private drivers and has attracted 2 million euros of venture capital investments and a team with people from Skype, Google & Uber.

“We became top #2 transport app in all 3 countries where we operate and plan to achieve the top #1 spot this year. South Africa became top #1 country by volume for Taxify as a company,” said Taxify’s founder and CEO Markus Villig.

For riders, Taxify’s base price is around 10% cheaper than its biggest competitors. Taxify also runs seasonal promotions that make it up to 40% cheaper than its base price. The firm says it compensates drivers the difference.

For drivers, Taxify takes 15% commissions from drivers compared to between 25%-30% taken by the biggest competitors. It also provides local support for for its drivers.

“We have attractive fares for both riders and drivers. This brings more drivers on the platform which in turn attracts riders as our rates are better and ETAs are improving weekly,” Villig said. “Our biggest source of new riders is word of mouth – people recommend Taxify to their friends as they see value in the service.”

Recently, Uber driver partners went on a strike demanding for higher rates so as they earn from their services like their metered counterparts who charge nearly triple Uber prices in the country. The driver partners want Uber to start charging passengers the moment a cab is hailed as they use their fuel looking for the passengers. They also want Uber to reduce its commissions per ride from 25 percent of the ride to 10 percent.

Uber Kenya announced this price cuts in July to beat its competition. Nate Anderson, Uber’s General Manager in Kenya said the low prices could increase the number of rides  a driver could make in a day due to the fact that the rides are cheap and there would be more passengers to serve. Things seem not to be working according to script though as the driver partners allege that they are making losses instead.

Taxify’s prices base tariffs are: 100/ 35 / 3 (should be updated in the table)
Prices at the moment are: 75 / 26 / 2.3 (seasonal discount)

Prices of major taxi hailing apps

Base Fare Cost Per Kilometre Cost Per Minute Surge Fare
Little Cab 55 4 No
Uber 100 35 3 Yes
Mondo ride 100 58 4 No
Taxify 75 26 2.3 Yes
Dandia 300 per zone No
Maramoja 250 per zone No

 

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