By Ian Ortega
Uber may have to wake up to a new reality with the entry of Taxify in the ride-sharing market of Uganda. Launched in late October, Taxify, a ride-sharing platform that was first rolled out in Estonia promises to be Uganda’s more for less in the sector.
This week, the ride-hailing app started off with a bang of a 50 percent price-drop. According to Shivachi Muleji, the operations manager, “at Taxify, our commitment has always been to give riders the most affordable rates and drivers the best earnings. We are happy to announce a 50% discount campaign for riders while compensating the difference to drivers.”
But is this price-drop sustainable? Will Taxify match up should its big competitors pursue a similar strategy? Lorreen Ajiambo, the Marketing Manager confirms that the business is still profitable and expresses maximum confidence in the model.
“Taxify charges 15% off rides so the driver is able to earn more from the trip. This compared to competitor’s 25% means that the drivers are happy to serve and this often translates into a better experience for a rider,” she explains. “There are also no cancellation charges and neither is there surge pricing – which means a rider spends less with Taxify.”
In recent times, ride-hailing concepts have faced increasing questions around safety mechanisms and assurances. Ajjambo notes that a lot has been put in place to ensure both driver and passenger safety. “Third party insurance is a requirement for drivers joining Taxify. This insures the rider against certain risks while on trip. Riders and drivers are also given information before the trip commences – like names, mugshots, number plates and car make. This ensures that a rider gets into the right car and a driver gets the right rider. Taxify is also able to track rides so in case of any incidences, it is possible to investigate.”
Taxify is a ride-hailing smartphone application that connects a rider with a private driver in minutes. It was started in Estonia in 2013 and has since expanded into over 20 countries including Uganda where it operates in Kampala (launched on 27 October).