But Uber has gathered critical mass and reached a valuation of more than $60 billion in eight years, despite a lack of profits. It has kept rivals at bay, partly by offering incentives to drivers to stay online.

Uber usually takes market share by giving drivers money to sign on to its app, paying them even if they are not driving passengers. Then, as it becomes more popular with passengers, it withdraws the inducements. Analysts say Uber aims to build a customer franchise and stable of drivers to dominate the market.


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Climbing into taxis to convince their notoriously sceptical drivers to sign up for a new service might not sound the best way to celebrate graduating from high school. But for Markus Villig, who was just 19 at the time, it was all part of trying to get his start-up Taxify off the ground with his older brother and co-founder Martin.

It brought in ratings and credit card payments for convenience and started by signing up companies and then single drivers. But growth was still frustratingly slow, and so the brothers decided to take the plunge into the private hire business and start their own ride-hailing service.

Taxify has tried to take business from other companies and says it has done so with a promise of better pay for drivers and cheaper fares for passengers. It thus takes a smaller margin for itself, but the brothers argue they gain a lot back by being more efficient than competitors. This year they are expecting more than $1bn of rides with about 10m passengers in 25 countries throughout Europe, Africa and Australia.

Bolt is an Estonian mobility company that offers ride-hailing, micromobility rental, food and grocery delivery (via the Bolt Food app), and carsharing services. The company is headquartered in Tallinn and operates in over 500 cities in more than 45 countries in Europe, Africa, Western Asia and Latin America. The company has more than 150 million customers and more than 3 million driver and courier partners.[2] The company has plans for an initial public offering in 2025.[3]

As I proceeded to enter my ride, a man showed up and said that was his ride, not mine. I asked the driver if he was Adeyinka as shown on my Uber app, he said yes. The other guy asked if he was Abiola as shown on his Taxify app, he said yes.

According to him, he has worked as a Danfo driver and proceeded to become a taxi driver after which he started using Uber (has been on it for 2 years) and driving with Taxify at the moment. His narrative caught my interest because I had always wondered what the underlying differences could be. The customer services seem so similar to a rider but so different for the drivers. He also said Uber charges more than Taxify and the latter rewards drivers for achieving set milestones which means they earn more on Taxify.

Most people would choose to prioritize the riders over the drivers because they bring in the revenue for the company. But that only makes sense on paper. The drivers actually influence the revenue a great deal. One thing I have noticed is that Uber drivers are always more hostile than Taxify drivers. This bad experience can make a rider (who brings in the revenue) lean towards the competitor.

Where the drivers are prioritized, riders may tend to switch and impact will be felt almost immediately. On the other hand, drivers become pissed off and they influence riders to switch. The impact, in this case, is felt slowly. A big company like Uber might probably not see it coming.

Taxify is an IT platform connecting drivers and riders. Every driver who uses Taxify to receive rides pays a 15 per cent commission per trip; up to half the commission taken by Uber and other ride-hailing platforms. The lower commission allows Taxify to offer lower prices for riders and more take-home pay for drivers. The service also allows drivers to create a defined radius for pick-ups, meaning they have the choice of how far they stray from home.

Happier drivers means a better quality service for riders. We believe in treating drivers with respect; allowing them to earn more than they would if working with other platforms and providing a range of safeguards and features that help them work in the way that suits them best. We aim to provide exemplary customer service to riders, with a 24-hour fully-staffed customer service line and the option to pay in cash (in some markets).

Ultimately, Taxify aims to have every person needing a ride waiting no more than a couple of minutes to get a car, regardless of their location in the city. At the same time, Taxify wants drivers to spend more time with passengers in their vehicles and less time driving an empty car.

There have been two strategies. Firstly, Taxify started expanding to big cities (with over 1 million residents), where the unemployment rate is high and public transport system relatively poor. Great examples of these markets are African cities where the Taxify service is needed to create jobs and allow driver-partners to earn more, whilst riders can benefit from more affordable rides.

Ride-hailing is only 2 per cent of urban transport in most cities around the world today. Taxify is one of the leaders in making private drivers more affordable and convenient, in five years we plan to be a strong alternative to public transport and personal cars.

Yet, a succession of strikes and protests by quickly mobilized driver associations in Kenya, Nigeria, South Africa, Ghana, and Uganda force us to think about whether these new jobs are good jobs, and whether competition among some of the biggest players is delivering efficiencies or creating a new race to the bottom in driver wages.

Although the platforms are loss-making they are well capitalized, and as long as new drivers are available to join the platforms, there seems to be no floor to the price that platforms are willing to set in the quest for greater market share. As of August 2018, minimum passenger fares for UberX were US$1.75 in Nairobi, US$1.81 in Johannesburg, and US$1.11 in Lagos. The competition among platform players extends beyond pricing: Taxify tries to attract drivers by taking a lower commission on driver revenues (10-20 percent for Taxify versus 25 percent on Uber), and both subsidize passenger-facing promotions for free and discounted rides.

But, because of vehicle investments and limited opportunity landscapes, exit frictions are significant. When drivers are lured to a platform at one price and instantaneously face a different set of prices, they feel stuck and angry, even if wages themselves appear to be multiples above local minimums.

Note: We stop in February 2018, when Uber diversified offerings (Uber Chap Chap, UberX, Uber Select), making it impossible to track driver numbers and price changes from press releases and media reports alone. We focus only on the variable kilometer price here, though there are also varying base fares and driver volume incentives. The kilometer rate appears to be the most volatile and contested by drivers in Kenya.

More twists and turns in the case between actress Dorcas Shola Fapson and Taxify driver, Udeh Henry Nnaemeka accused of assaulting and attempting to rape her, as the latter has now taken the actress to court on charges of false accusation.

Beneficiaries of FlexiCare can be driver-partners, Artisans, Entrepreneurs, Trade Unions, Professionals, Students and everyone who desires affordable and excellent healthcare. People with this cover can get access to general and specialist consultations, laboratory tests, admissions, surgeries and treatment of everyday illnesses.

Gareth Taylor, Taxify South Africa country manager, says: "The South African petrol price has increased by more than 13% since January. These increases have had a detrimental impact on the businesses and earnings of drivers using the Taxify platform.

"Having engaged with Taxify driver-partners, and wanting to address their valid concerns, Taxify is responding to the impact the petrol price hike has had on them by adjusting some of the rates it charges riders who use the Taxify platform."

Alon Lits, Uber Sub-Saharan Africa GM, says: "Uber succeeds when our partners succeed. The 25% service fee is designed in a way to ensure the business is sustainable for both Uber and our driver-partners."

He clarified some points raised by drivers: "Prior to the recent fuel price increase earlier this month, we launched a temporary winter incentive to help reduce the impact of fuel increases. This is designed for driver-partners who do a certain amount of trips and is calculated based on information provided by drivers and fuel efficiency statistics of their vehicles.

"We understand that fuel is one of the biggest weekly expenses for drivers, which is why drivers can also access rewards that help them reduce costs and keep more of their earnings. This exclusive programme provides deals such as fuel rebates, cellphone deals, maintenance and healthcare."

Twitter user Segzy Gwinya said on the platform: "Trying to understand this Uber strike. Seems the drivers have an issue with Uber taking 25% and prices not increasing. Customers would obviously have an issue if prices went up. Personally, I don't think anyone should have 25% of your labour... so Uber should take the knock."

Another user, Mo, criticised Uber for not warning potential passengers about the strike: "@Uber_RSA it would be nice if you guys would just tell us when your drivers are on strike so we know to expect long waiting times and oh the inflated ride prices."

From all we do know, everything does point toward the metered taxis. We are also calling for calm. Uber drivers and Taxify drivers are obviously really angry and we just don't want to inflame the situation.

With hundreds of thousands of trips across the country booked through our app each week, the safety of driver-partners and riders is a top priority for the company. The safety button will allow Taxify driver-partners to access rapid deployment of the correct emergency response should they find themselves in danger and allow driver-partners to connect to emergency help in critical situations. e24fc04721

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