Taxify Suffers Setback In London, Suspends Operations
Ride hailing service, Taxify is having some troubles in the United Kingdom.
Barely 3 days after it launched in London, it was forced to suspend its services.
The company, which is emerging as a strong Uber rival, said on Friday that it had to temporarily halt operations after regulator Transport for London, TfL said it failed to obtain operating licence.
The Estonian startup, which is active in 25 cities in central and eastern Europe and Africa, launched private hire services in London this week.
“Taxify is not a licensed private hire operator and is not licensed to accept private hire bookings in London. TfL has instructed Taxify to stop accepting bookings and it has done so,” a TfL spokesman said.
However, Taxify has defended its legal status arguing that its software platform for connecting drivers and passengers is working with City Drive Services, a licensed London private hire firm.
Already, since it launched 3 days ago, it had signed up 3,000 drivers and 30,000 customers had downloaded its ride-ordering app.
The company, which recently announced financial backing from China’s DiDi Chuxing, said it looks forward to resolving the issue with TfL.
“Our sole objective is to make London’s ride-hailing market fairer so that better value is delivered for customers and drivers alike,” the company said.
Just as it did in Nigeria, Taxify will lower its commission in London to take 15%.
This is against the 20 to 25% that Uber charges.