# Uber rival ride-sharing app Taxify to launch in Sydney by Christmas 2017



## QLDUberDriver (Jan 23, 2016)

*Uber rival ride-sharing app Taxify to launch in Sydney by Christmas 2017*

Ride-sharing company Taxify plans to launch services in Sydney by Christmas, promising to pay drivers more in an attempt to challenge Uber's grip on the market.

The fast-growing Estonian company, which operates in 20 countries and lists among its financial backers Chinese ride-sharing giant DiDi, will charge drivers a 15 per cent commission on fares, significantly lower than Uber's cut of 20 to 25 per cent.

Yet even with that carrot, analysts say Taxify will have a battle on its hands to build a network of drivers in Sydney and convince customers to use its app to book rides.

Uber has a gained a stranglehold on the ride-sharing market in Sydney since launching here in 2012, sidelining local competitor GoCatch despite the latter's list of high-profile wealthy investors such as Seek co-founder Paul Bassat.

But Taxify said charging drivers lower commissions than Uber meant it would be able to offer a price advantage for customers of up to 5 per cent in the longer term.

"As a result, we have higher loyalty both from drivers and customers," spokesman Pavel Karagjaur said. The company, which was founded only four years ago, plans to expand to Melbourne and Brisbane shortly after its launch in Sydney.

"As long as you make a good offer in the market, [it] doesn't really matter how big the market leader is or how many competitors exist in the market," Mr Karagjaur said.

"We have recently launched in Paris and became No.1 most downloaded app in the country."

The ride-sharing company has been searching for a country manager for Australia, as well as an operations specialist to train and coordinate "thousands of new drivers".

However, GoCatch's struggle to compete  against Uber since entering the ride-sharing market in late 2015 underscores the challenge ahead.

Morningstar analyst Gareth James said it would be difficult for Taxify to attract drivers and customers to its ride-sharing platform due to Uber's dominance.

"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. People will choose Uber because they believe it's the largest ride-sharing application."

Mr James said that even if Taxify gained drivers by offering lower commissions, Uber could easily do the same to protect its market share, resulting in a "race to the bottom" and leaving the new entrant vulnerable.

"Taxify might get some market share but they are going to have to spend a lot of money to do it," he said. "Why would someone who uses Uber switch to these guys, as a customer? For anyone, it is going to be really difficult to compete with the likes of Uber."

The NSW government legalised ride-sharing services in December 2015, and has since imposed a $1 levy on passengers per trip to help pay for a $250 million compensation package for the taxi industry.

http://www.smh.com.au/nsw/uber-riva...sydney-by-christmas-2017-20171018-gz3eho.html


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## weekendnightdriver (Sep 5, 2016)

Taxify competed with Uber in price cut in London.
Their coming to Australia is anything but good news.


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## Syd drv (Aug 18, 2017)

Its good for fulltime driver if more ride sharing company in market.
They can do 12hours on uber and additional hour on others platform.

Cheers.


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## AvengingxxAngel (Jan 5, 2017)

Uber is the main brand of rideshare, for Taxify to take over, it would take a long time. Wouldn't make much difference for drivers anyway, just drive for Taxify also.


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## Syd drv (Aug 18, 2017)

We never know.
In Asia lots of local company dominating market! 
May be competetion good for both driver and customer.

One day google will provide free or low cost map service to direct to drivers and end for uber


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## Thing (Oct 7, 2016)

The only way to break Uber's dominance is to spend lots of $$$ on advertising, be prepared to have heavy losses whilst establishing.. reward drivers with good rates, pax with low fares...

You would need a ruthless campaign where you target Uber as bad & make pax believe they need to change...


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