Uber rival lands in London, halts operations after 3 days
Well, it was good while it lasted.
SEE ALSO:Uber beware: Didi-backed Taxify is coming after you in LondonEstonian company Taxify-- backedby Uber's arch-enemy, China's Didi Chuxing -- has halted operations in London just three days after launching.
The company began operating in London with the outright aim of snatching thousands of drivers and passengers away from Uber, but soon ran into trouble over licensing issues.
London transport regulator, TfL, launched an investigation as the firm is not registered as private hire operator under the name "Taxify".
“The law requires private hire bookings to be taken by licensed private hire operators at a licensed premises, with appropriate record keeping," a TfL spokesperson said.
"Taxify is not a licensed private hire operator and is not licensed to accept private hire bookings in London.
"TfL has instructed Taxify to stop accepting bookings and it has done so."
Founded four years ago by 23-year-old university dropout Markus Villig, Taxify has 2.5 million customers over 19 countries and has raised a modest 2 million euros ($2.38 million) so far, while Uber has raised more than $15 billion.
Didi, who is leading the international fight against Uber, partnered with Taxify last month to invest and grow its presence across Europe, Africa, and Asia.
The company says it takes only 15% commission from its drivers, which is relatively low compared to 20-25% taken by Uber on fares.
In an emailed statement to Mashable, Taxify said in full cooperation with the TfL it "temporarily stopped operations to clarify its legal position with the regulator and reach a resolution so that services can return to normal."
"Taxify is a technological platform for customers to hail rides from City Drive Services, a licensed London based private hire company," the company said.
"TfL have a responsibility to Londoners to make sure there is a competitive ride-hailing market in the capital that strengthens incentives for operators to improve quality and safety while also bringing the overall cost down for customers," it added.
Over 3,000 registered drivers and over 30,000 customers downloaded the app in the first three days, Taxify added.
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