Cabify risks losing fleet supremacy to Uber in home base Madrid

Via Inti Landauro

MADRID – The experience-hailing app Cabify, considered one of Spain’s few ‘unicorn’ tech startups, risks dropping floor to foreign rivals reminiscent of Uber or Bolt in its home base Madrid because of a row over exclusivity with a company which employs 1,ONE HUNDRED of its drivers.

Entrepreneur Felix Ruiz, co-founding father of the privately-held firm Auro which owns the vehicles and licences and employs the drivers, informed Reuters Auro had made up our minds to switch them to both Uber or Bolt or each from Jan. 20.

The Spanish corporate may just fall to No.2 in its home turf, as Cabify and Uber have concerning the same marketplace share in Madrid, consistent with Auro estimates.

Uber and Cabify declined to touch upon their respective market stocks.

On Monday, Cabify mentioned that an arbitration courtroom ruling in June obliged Auro’s fleet to keep working with the app, however Ruiz, despite the fact that acknowledging that Cabify had won the arbitration, said the contract with Cabify have been cancelled and his company was once prepared to protect its resolution in courts.

Ruiz doubted the 2 may nonetheless reach an settlement.

“we’re not aligned,” he stated, adding that he considered Cabify’s rival Uber to be “more efficient as its set of rules allows for upper income”, while Bolt’s advantage was once charging less in a bid to achieve marketplace proportion.

Auro’s pool of 2,500 delivery riders is already running with Uber Eats and different retailers.

Madrid, the place Cabify began operating a decade ago, has approximately 8,000 cars licensed for ride-hailing products and services, and competition is rife among apps which have been branching out into scooters, bikes and grocery deliveries.

Cabify, which is bearing in mind going public but has now not introduced any company plan to factor shares yet, had world revenues of $516 million in 2021, and over 5.4 million registered users.

It makes use of the products and services of 230,000 drivers throughout its markets in Europe and Latin The United States. It has 441 direct team of workers in Spain, in step with a up to date corporate presentation.

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