Spot the difference.
The Taxify rideshare app launched in Australia on 12 December and was quickly dubbed an “Uber killer.”
Uber vs Taxify
Prices and fares, side by side.
|How prices are determined||Base + time + distance + extras (surge pricing, tolls, etc)||Base + time + distance + extras (surge pricing, tolls, etc)|
|How much it costs riders||Varies||Varies.Promotional 50% discount for the first month.|
|Percentage of driver’s earnings taken by the company||Varies. Approximately 20% to 30%.||Approximately 10 to 20%.|
|Surge pricing||Has been known to reach 8x normal fare in Australia.Enabled automatically based on rider demand and driver availability.||Capped at 1.5x normal fare.Enabled manually based on demand.|
|Availability||Australia-wide, with over 60,000 drivers||Sydney and Melbourne only, with over 4,000 drivers|
|App design and user interface||Almost identical||Almost identical|
What’s the verdict?
For both drivers and passengers, Taxify is likely to offer better value for money in almost all situations.
Most notably Taxify takes a substantially smaller cut of the driver’s earnings than Uber does, and is offering a promotional price-beat offer which theoretically guarantees cheaper Taxify rides than Uber rides for the duration.
Why would I NOT use Taxify?
Uber still has an advantage in a few areas.
- Availability: In Australia Taxify is only in Sydney and Melbourne at the moment, so it's not as widely available as Uber. However it does have plans to launch in other major cities.
- Ride type: There’s only one kind of Taxify ride. So if you specifically want an SUV (UberSUV) or a nicer car (UberBlack), for example, you might stick with Uber.
- Discounts for Uber: While Taxify is still new, there's often discounts going around for cheap Uber rides, like the one below for $20 off your first ride.
And while passengers might favour the typically-lower and less active surge pricing of Taxify, drivers might feel otherwise.
Although Taxify will typically offer its drivers a larger cut of the total, higher surge pricing might lead driver-partners to stick with driving for Uber during peak hours or busy times.
The interface and how it works
Taxify works almost exactly like Uber, right down to the rating system.
Uber vs Taxify company history
Taxify was founded in Estonia in 2013. Today it’s the most popular taxi rideshare company across large parts of Europe and Africa, tracking at about $1 billion revenue a year.
Uber was founded in the USA in 2009, and is generally one of the leading rideshare companies anywhere Taxify isn’t. It’s earning about $6.5 billion in revenue a year.
How can Taxify afford to offer cheaper rides?
Uber has had a long struggle with profitability. Despite its multi-billion dollar revenue, it reportedly had a $2.8 billion net loss in 2016. So how can Taxify afford to be even cheaper?
According to a Taxify spokesperson, it's simply because they run a tighter business than Uber.
Both Taxify and Uber have received billions of dollars in investment, with the aim of growing to greater profitability.
And both Taxify and Uber can always use more drivers.