TaxiBeat

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Taxibeat, the hail-a-cab smartphone app and taxi driver marketplace, has raised an extra $2 million, adding to the approximately $1.4 million raised previously. As soon as again, the support comes from unnamed high-net worth individuals, while the new capital will be used, in component, to further fuel the Greek start-up’s ongoing development into Latin America, a market that’s seeing it go up against Rocket Net’s much better funded Easy Taxi.

Specifically, Taxibeat is launching its taxi motorist marketplace in Mexico City, pegged for mid-July, adding to its existing LatAm presence through Rio de Janeiro and São Paulo in Brazil. It likewise operates in four European cities: Athens (Greece), Oslo (Norway), Bucharest (Romania), and Paris (France).

In contrast to Taxibeat’s around $3.4 m in financing, Rocket’s Easy Taxi, which was established from Rio de Janeiro in 2011 and runs in the same LatAm cities as Taxibeat (along with other cities in Brazil and further afield), is thought to have raised over $20m in total. Most recently it closed a $15 million Series B from Latin America Internet Holding (LIH), Rocket Internet’s holding shop in the area, and part-owned by Millicom.

Taxibeat’s smartphone app, offered on iOS and Android, allows individuals to locate close-by taxis, hail the driver of their option and rate them once the trip is over. Rather than running its own fleet, it targets independent taxi motorists and those associated with taxi firms, charging a small commission on the company it brings, without additional fee passed on to travelers.

Meanwhile, travelers utilizing the free of cost app get a much greater selection of taxi ride, right down to the specific motorist, led by user ratings and other info displayed, such as existing distance and exactly what features are available in the taxi. By making taxi travel a true marketplace, down to individual driver, Taxibeat claims to be having an impact on the quality of service that taxi drivers provide.

As for why the start-up seems bed linen down in Latin America, differing its European roots, Taxibeat states that market size is a major element, noting that mega-cities like Mexico City and Sao Paulo can’t be compared to anything it might perform in Europe.

Additionally, in Latin America, public transportation infrastructure is poor, implying that non-affluent people rely on taxis in a manner they don’t in numerous European nations where the subway and buses are a liked and more affordable choice.

Finally, Taxibeat says that the taxi market in numerous LatAm nations is broken, with high criminal activity rates and bad quality of service on the one hand, and a ‘handful of excellent drivers attempting to identify themselves from the pack on the various other’. A track record mechanism enables the cream to rise to the top, hence raising requirements generally.