Taxify arrives in France, will he kill Uber?

The explosive rise of this young Estonian seedling founded in 2013 threatens Uber with its monopoly on VTC platforms. With a very competitive commission, Taxify hopes to recruit a maximum of drivers available to passengers. The challenge of this battle that is preparing for Paris is a sample of what really awaits the sector at the global level …

War is declared ! Taxify arrives in France … This Estonian start-up does not look like a young 23-year-old CEO, and yet it aims not less than to break Uber’s market.

It’s this Thursday, October 5th at 10am that the VTC Taxify platform will be activated in Paris. The main novelty lies in the commission levied on the driver’s race which will be 15% only, against 25% at Uber. For the VTC, the arrival of Taxify is excellent news, it will allow to put Uber in competition where it was in a situation of quasi-monopoly.

A complex regulatory context
The arrival of Taxify comes in a particularly complicated French regulatory context. The major VTC platforms are worried about the application of the Grandguillaume law which obliges drivers to validate specific training essential to the VTC license, and this, from 1 January next. However, this training is sanctioned by an examination that proves difficult. Operators fear that 40% of French VTC drivers will be deprived of the right to operate on 1 January. The platforms will then have to fight to recover the drivers who will still be on the market. Taxify expects to have a major competitive advantage with this 10-point commission lower than Uber and thus have a larger VTC fleet. According to Taxify, thousands of drivers have already downloaded the application.

The secret of Taxify lies in the great frugality of its economic model. With only 170 employees, the company founded in 2013 is already established in 18 countries including Eastern Europe, but also in Asia, Africa and even Mexico. It has nearly 2.5 million users.

The Didi-Uber war in the background …
Behind Taxify, it is especially the arrival of Didi which is framing since the powerful Chinese platform entered the capital of the Estonian start-up last August. Didi is far more important than his young recruit since he claims nearly 400 million users. For Taxify, such an ally is strategic because it constitutes a lever of financing, but it could also prove to be a deposit of technologies in particular on the artificial intelligence. Didi, he wants to position itself as the main competitor of Uber he ousted China in 2016 by buying the activities of the American while allowing the latter to take 20% of its capital …

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