• 3 hours Why Investors Shouldn't Ignore Gold Stocks
  • 21 hours Facebook Scrubs Over 2 Billion Fake Accounts
  • 1 day Dow Scrambles To Avoid Fifth Straight Weekly Loss
  • 2 days Is This The World’s First Truly Democratic Stock Exchange?
  • 2 days India’s Wealthiest Set To Hold $23 Trillion By 2028
  • 2 days First Quarter Profits Slip For World's Top Oil Companies
  • 2 days The Yuan May Be China's Biggest Weakness
  • 3 days Hedge Funds Having A Banner Year
  • 3 days Disney Heiress Asks “Is There Such A Thing As Too Much?”
  • 3 days BHP Turns Bullish On EVs
  • 3 days Investors Turn Bullish On America’s Nuclear Decommissioning Business
  • 4 days The $90M Inflatable Rabbit Redefining Modern Art
  • 4 days Huawei’s Fate In The Air
  • 4 days Tesla Slashes Prices Again
  • 4 days The Modern History Of Financial Entropy
  • 5 days Italy’s Central Bank Embraces Sustainable Investing
  • 5 days Trump Lifts Metals Tariffs To Cool Simmering Trade War
  • 5 days Researchers Push To Limit Space Mining
  • 5 days Could China Start Dumping U.S. Treasury Bonds?
  • 6 days Is Winter Coming For HBO?
Italy’s Central Bank Embraces Sustainable Investing

Italy’s Central Bank Embraces Sustainable Investing

Italy’s central bank plans to…

Tesla Slashes Prices Again

Tesla Slashes Prices Again

Tesla has slashed its car…

Damir Kaletovic

Damir Kaletovic

Writer, Safehaven.com

Damir Kaletovic is an award-winning investigative journalist, documentary filmmaker and expert on Southeastern Europe whose work appears on behalf of Safehaven.com.

Contact Author

  1. Home
  2. News
  3. Breaking News

The Ride-Sharing Unicorn To Rival Uber

Taxify

Uber has dominated on the global ride-hailing space scene for a while now, but this space could start to get crowded and the Daimler-led $175-million fundraising for European-based Taxify ups the ante in the race for global dominance.

If you haven’t heard of it, Taxify is an Estonian company, and if no one is convinced that it could rival giant Uber, consider this: It’s just secured a $1 billion valuation thanks to the $175-million-round of funding, and everyone from German automaker Daimler to UK-based money transfer start-up TransferWise and French VC fund Korelya Capital participated.

Last year, it got a boost by sealing a partnership deal with China’s ride-hailing giant, DiDi, which also participated in the recent funding round.

Taxify is still small compared to Uber, but the potential is big and while this space could get crowded, it’s not crowded yet. And it’s also starting in Europe, where it’s hoping for the local advantage over the Uber ride-hailing master.

Right now, Taxify has some 10 million passengers signed up to its platform and 500,000 drivers in 40 cities on four continents. That compares to Uber’s 80 countries and almost 700 cities.

But this Estonian unicorn is just getting started. Already, it’s expanding into Western Europe, where it’s conquering London and stealing some of Uber’s market share by tossing a bit of competition into the arena.

It’s also expanding into Africa, where it’s already Uber biggest rival. Related: London’s $13T Metals Exchange Just Got Even Hotter

London wasn’t such a difficult fight for Taxify, given Uber’s mounting challenges there, particularly over the classification of drivers as formal workers instead of self-employed.  

Not only is Taxify trying to beat Uber by promising cheaper fares, but it’s also trying to steal Uber drivers by promising better pay with the company taking a lower commission.

So why is Daimler so interested?

“Taxify is an ideal addition to our existing and extensive mobility services portfolio,” said  Joerg Lamparter, head of mobility services at Daimler Financial Services.

But Daimler seems to be interested in pretty much every company that could rival Uber outside of the United States.

Daimler has thrown itself wholeheartedly into this space, with a major ownership stake in MyTaxi—a dominant online taxi company in Germany, which also competes against Uber in Britain, Ireland and Spain. The German automaker also has a stake in Uber rivals Chauffeur-privé of France, and Careem, which operates in cities across the Middle East.

Daimler has also invested in Flinc, a German carpooling start-up, and the German carmaker also has its own transport-booking app, Moovel, which has a user base of 2.5 million and which Taxify may gain access to.

Related: Peak Gold: Is It Already Here?

Despite Uber’s struggles, though—and even its retreat from several regional markets, including Southeast Asia—it’s still the world leader outside of China, and last year even launched a JV with Russia’s ride-hailing Yandex, even if it did have to take a back seat on ownership.

Uber is turning out to be the gateway drug for the ride-hailing business, and unicorns who sat backed and watched the pioneer’s challenges are jumping in with the advantage of Uber having cleared some major hurdles for them. Now the pioneer is about to be challenged on multiple continents.

By Damir Kaletovic for Safehaven.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment