UBER vs TAXIFY

A lot is happening on the ride-sharing scene in Nigeria. First, there is all this drama surrounding Uber. From driver strikes to partner protests and accusations of shoddy handling of payment(s) for partners. All this at a time when the fledgling company is attempting to gain ground in Nigeria.
No doubt, Uber has the largest market share in terms of ride-sharing apps in Nigeria, and even though they seemed to have competition, they could still be regarded as a monopoly. Their competitors don't just seem to be able to put their acts together to compete with Uber. This, coupled with the fact that Uber is a multinational company, playing perfectly into the Nigerian penchant for all things foreign.
As a result of the monopoly Uber Nigeria enjoyed, they could afford to be arbitrary. Slash earnings today, reduce incentives tomorrow, deactivate drivers, etc. They could do as they pleased, which in itself was the main reasons the partners and drivers on Uber, formed union-like groups. Uber's partners in progress - the partner-drivers - were starting to feel the strain of slashed earnings, while Uber on the other hand, could afford the slashed rates since they got a fixed 25% on all transactions, just for providing the platform. My use of "just" in the last sentence is not to underestimate how much it would cost to provide such a platform as we have seen many try to do this at lower rates with no significant success. However, lower fares for riders means more riders, and more 25% for Uber while the partners who own the assets and bear all the risks were being shortchanged by Uber's policies.

Fast forward to November 2016, and it seems the face of ride-sharing in Nigeria is about to experience a facelift. A seemingly veritable challenger has thrown it's hat in the ring. That challenger is Taxify, a ride-sharing app which promises to be an improvement on Uber's services and rates. According to the Taxify website - Taxify is a free smartphone app which seamlessly connects people to reliable drivers. No more call-centres, waiting or paying ridiculous fares. Simple, fast and affordable. Join the revolution and see how transport in the 21st century should be.
Taxify charges 15% on all transactions, and promise 15 % more earnings for their partners on their platform than on any other platform in Nigeria. And they are a big company, according to reports, Taxify is the fastest growing taxi e-hailing app in the Baltics and in Europe and they are looking to repeat this feat on the African continent . With statistics like these, Taxify looks set to give Uber a run for it's money with their recent launch in Lagos, where they are in direct competition with Uber.

So, is this the solution to the monopoly problem that Uber enjoys in Nigeria? I spoke with a few Uber partner-drivers and drivers. They unanimously praised the entrance of Taxify into the market. They figure that, Uber would be forced to offer better rates and incentives if it hoped to fend off the aggressive entry Taxify is making into the industry.
In a recent roundtable meeting in Abuja with partners and Uber executives, Uber claims that they are not yet profitable, but with the business model and infrastructure they had on ground, it was only a matter of time before they would break even and proceed to make profits. My question now is, does Taxify have the business model, the infrastructure or the financial backing that Uber (a $65 billion company) possesses? Can they last the whole 90 minutes plus extra time? In my opinion, these are crucial factors that will play a major role in determining whether Taxify would survive in Nigeria or not. Judging from our current economic standing, it's no secret that we are a people quick to praise a new thing and join the bandwagon but just as quick to condemn that same thing when it doesn't go our way. I hope this will not be the case with Taxify because competition is healthy and this would at the very least, keep the ride-sharing industry on its toes, and also keep monopolistic tendencies down.

This would be good for the drivers, better for the partners and best for the passengers.

Can Taxify spoil Uber's sport in Nigeria, or will Uber emerge unscathed?
Rest assured, I will keep you posted. Stay in touch to keep updated.

Vidi Uri Idinyang

FTC. Just in case.

OAKSFIVEFARMS:
FTC. Just in case.

Haha... I can see!

iamVIDI:
UBER vs TAXIFY

A lot is happening on the ride-sharing scene in Nigeria. First, there is all this drama surrounding Uber. From driver strikes to partner protests and accusations of shoddy handling of payment(s) for partners. All this at a time when the fledgling company is attempting to gain ground in Nigeria.
No doubt, Uber has the largest market share in terms of ride-sharing apps in Nigeria, and even though they seemed to have competition, they could still be regarded as a monopoly. Their competitors don't just seem to be able to put their acts together to compete with Uber. This, coupled with the fact that Uber is a multinational company, playing perfectly into the Nigerian penchant for all things foreign.
As a result of the monopoly Uber Nigeria enjoyed, they could afford to be arbitrary. Slash earnings today, reduce incentives tomorrow, deactivate drivers, etc. They could do as they pleased, which in itself was the main reasons the partners and drivers on Uber, formed union-like groups. Uber's partners in progress - the partner-drivers - were starting to feel the strain of slashed earnings, while Uber on the other hand, could afford the slashed rates since they got a fixed 25% on all transactions, just for providing the platform. My use of "just" in the last sentence is not to underestimate how much it would cost to provide such a platform as we have seen many try to do this at lower rates with no significant success. However, lower fares for riders means more riders, and more 25% for Uber while the partners who own the assets and bear all the risks were being shortchanged by Uber's policies.

Fast forward to November 2016, and it seems the face of ride-sharing in Nigeria is about to experience a facelift. A seemingly veritable challenger has thrown it's hat in the ring. That challenger is Taxify, a ride-sharing app which promises to be an improvement on Uber's services and rates. According to the Taxify website - Taxify is a free smartphone app which seamlessly connects people to reliable drivers. No more call-centres, waiting or paying ridiculous fares. Simple, fast and affordable. Join the revolution and see how transport in the 21st century should be.
Taxify charges 15% on all transactions, and promise 15 % more earnings for their partners on their platform than on any other platform in Nigeria. And they are a big company, according to reports, Taxify is the fastest growing taxi e-hailing app in the Baltics and in Europe and they are looking to repeat this feat on the African continent . With statistics like these, Taxify looks set to give Uber a run for it's money with their recent launch in Lagos, where they are in direct competition with Uber.

So, is this the solution to the monopoly problem that Uber enjoys in Nigeria? I spoke with a few Uber partner-drivers and drivers. They unanimously praised the entrance of Taxify into the market. They figure that, Uber would be forced to offer better rates and incentives if it hoped to fend off the aggressive entry Taxify is making into the industry.
In a recent roundtable meeting in Abuja with partners and Uber executives, Uber claims that they are not yet profitable, but with the business model and infrastructure they had on ground, it was only a matter of time before they would break even and proceed to make profits. My question now is, does Taxify have the business model, the infrastructure or the financial backing that Uber (a $65 billion company) possesses? Can they last the whole 90 minutes plus extra time? In my opinion, these are crucial factors that will play a major role in determining whether Taxify would survive in Nigeria or not. Judging from our current economic standing, it's no secret that we are a people quick to praise a new thing and join the bandwagon but just as quick to condemn that same thing when it doesn't go our way. I hope this will not be the case with Taxify because competition is healthy and this would at the very least, keep the ride-sharing industry on its toes, and also keep monopolistic tendencies down.

This would be good for the drivers, better for the partners and best for the passengers.

Can Taxify spoil Uber's sport in Nigeria, or will Uber emerge unscathed?
Rest assured, I will keep you posted. Stay in touch to keep updated.

Vidi Uri Idinyang

thanks ... nice info