Uber’s competition continues to grow: is the tech company being ‘out-teched’?

The European ride-sharing company Taxify officially launched in Sydney yesterday, bringing important competition to giant Uber. According to Taxify, the launch brings with it a network of over 5,000 drivers and a 50% discount for the next month. But Taxify isn’t the only competition hot on the heels of Uber. Let’s take a look at a few examples around the world.


Summary:

  • Taxify officially launched in Sydney yesterday, bringing important competition to giant Uber;
  • Indonesia’s powerhouse USD3 billion start-up, GO-JEK, backed by Tencent Holdings is taking ride-sharing business to the next level;
  • America’s Lyft provides over 1 million rides per day and has just launched its service in Toronto, marking its first expansion outside the United States.

Taxify, Estonia’s USD3 billion gem

Taxify was founded in Estonia in 2013 as a market-leading platform connecting riders to private drivers or licensed taxis.

Since then it has become one of the fastest-growing companies in Europe and Africa, with over 3 million customers in more than 20 countries. Taxify says its key point of difference is that it only takes 15% commission from drivers, which is approximately half of what its competitors take. Taxify also allows drivers to choose the area they work by setting up a work radius.

Taxify Australia country manager Samuel Raciti believes: “Drivers can expect to earn more when driving with Taxify, and riders can expect to save money at the same time. Our focus as a company has always been providing our drivers with higher revenue-per-ride, as we’re firm in our belief that happy drivers means happy riders.”

Meet Indonesia’s powerhouse start-up, GO-JEK

Already on the scene is Indonesia’s powerhouse USD3 billion start-up, GO-JEK, which has taken the ride-sharing business to the next level. Established in 2010 as a motorcycle ride-hailing phone service, GO-JEK has evolved into an on-demand mobile platform and app, providing a wide range of services that includes transportation, logistics, mobile payments, food delivery, and many other on-demand services.

GO-JEK is backed by Tencent Holdings, the video game and social media behemoth, and it is this that makes it different. GO-JEK is making a massive push to be more than just a transportation or ride-sharing company. GO-JEK wants their app-based wallets to replace cash completely – as is the norm in China.

It’s these additional services that actually make the app more interesting for customers, allowing for more touch points and earning possibilities. In fact, GO-JEK has 16 different services within its remit, including: Go-Tix, for buying tickets; Go-Glam, for in-home beauty treatments; Go-Pulsa, for phone and data payments; and Go-Mart, which services instant shopping and delivery.

More corporate travellers are opting to take a ‘Lyft’

Hallmark companies of the sharing economy, including Airbnb and Uber, are increasingly broadening their reach into the lucrative business customer base, and now Uber’s rival Lyft is gaining traction in the corporate market.

In a recent report tracking corporate spend on ride hailing services in its systems, the travel expense software company Certify concluded that although Uber continues to dominate its rivals in the corporate market, its share during 3Q2017 fell for the first time since Certify began tracking ride sharing data.

Uber’s share notched down 1% to 54%, whereas Lyft grew its share by 3% to account for 11% of all rides in Certify’s ground transportation category. It was the largest quarter-to-quarter gain for Lyft since its inclusion in Certify’s regular quarterly reports.

Lyft continues to gain traction in many major US metro markets, holding the largest shares in Los Angeles and San Francisco, at 22% and 21%, respectively.

While Uber’s share fell slightly in Certify’s 3Q2017 analysis, the ride-sharing company “remains the number one vendor in business travel ground transportation and the most expensed brand of any category in the Certify system”, the company has concluded. “More than double second place Starbucks as a share of transactions”.

Haven’t heard of Lyft before? Launched in June 2012 and operating in approximately 300 U.S. cities, Lyft provides over 1 million rides per day. The company was valued at US$7.5 billion as of Jun-2017, and has just launched its service in Toronto, marking its first expansion outside the United States.