LONDON- Taxify, an Estonian ride-hailing app seen to be a cheaper alternative to Uber, has paused operations in London just three days after launching.
Business Insider reported, that after the firm began operating in the British capital on Tuesday, 5 September 2017 but operations were put to a stand still due to issues over its licensing arrangements. It isn't registered as a private-hire operator under the name "Taxify," and London transport regulator TfL launched an "urgent investigation."
In an emailed statement early Friday, Taxify defended its arrangements but said it has "temporarily stopped operations to clarify its legal position with the regulator."
Taxify bills itself as "a technological platform for customers to hail rides from City Drive Services," which does have a license, but said TfL raised this "as a concern."
A Taxify spokesperson did not immediately respond to Business Insider's request for comment as to whether TfL asked the company to stop operating in the city, and how long it expects the situation to last.
Taxify says that 30,000 people in London downloaded the app since it launched and that it has over 3,000 registered drivers on its platform. The company promised that it would be cheaper than Uber, which dominates the London ride-hailing app market. It also takes a smaller cut of the passenger's fare than its American rival which is 10-15%, versus Uber's 20-25%.
- BUSINESS REPORT ONLINE