Start-up set to take on Uber

The Star Early Edition - - BUSINESS REPORT -

ES­TO­NIA up­start Tax­ify is hop­ing to win over driv­ers and take on in­dus­try leader Uber by of­fer­ing a larger share of the profit. Up­starts across the world, such as Lyft and Ola, are try­ing to catch Uber in the on-de­mand car-ride mar­ket by se­cur­ing brand loy­alty. But Uber has gath­ered crit­i­cal mass and reached a val­u­a­tion of over £60 bil­lion (R984bn) in just eight years, de­spite a lack of prof­its. It has kept ri­vals at bay, partly by of­fer­ing in­cen­tives to driv­ers to stay on­line. Tax­ify, a min­now com­pared to Uber, can­not af­ford these perks but be­lieves that by tak­ing a smaller share of fares – 15-20 per­cent com­pared to Uber’s 20-25 per­cent – it can steal mar­ket share from its San Fran­cis­cobased ri­val.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.