Overview
It's been just a few days since the Victorian government proposed new legislation in an attempt to even the playing field between taxis and ride share services. And now it looks like Sydney's ride-sharing industry could also see its own boost in competition, with Uber rival Taxify set to launch in the city by the end of the year.
The Estonian company made headlines last month when licensing issues forced it to stop services in London just days after its UK launch. According to operators, Taxify's recent Paris launch saw it become the most downloaded app in France.
Now with about 30 international cities under its belt, The Sydney Morning Herald reports that Taxify is slated to hit Sydney streets by Christmas. The company is promising to charge drivers a 15 percent commission on fares, a figure that's much more attractive than the company's main competitor Uber, which currently takes around 20 to 25 percent from each fare.
In theory, that could see Taxify offering cheaper rides and luring customers (and drivers) to jump ship from their usual ride-share service, though Uber's domination of the market since launching in 2012 has proven impossible to crack so far. As Morningstar analyst Gareth James told The Sydney Morning Herald, Taxify doesn't have an easy ride ahead. "To have a competitive advantage, you need to have a network effect whereby everyone uses your website," he said. "What will be difficult for new entrants is competing with Uber's network effect. Taxify might get some market share but they are going to have to spend a lot of money to do it."
Pending success in the Sydney market, Taxify has its sights set on Melbourne and Brisbane in the near future.
Taxify is set to launch in Sydney by the end of the year. For updates, check the company's Facebook page.
Via The Sydney Morning Herald. Image: Taxify.