Editor’s note: This article was first published in October 2014; Cabify’s funding total, staff numbers, offices, driver count, average wait time, city list and supported phones are from that time, when its Series B round was still to be completed.
Companies such as Uber and Cabify seem to be here to stay, despite the anger they have caused among taxi drivers, a sector that will have to reinvent itself. That is clear from the interest investors are showing in taking part in companies of this kind, including the Winklevoss twins, who did not want to miss the chance to invest in Cabify, also known as the Spanish Uber.
This Spanish company is reinventing urban transport by offering a quality mobility solution through different types of chauffeur-driven vehicles, with a lot of added value from technology, and the results have been spectacular.
The launch in recent months of its most affordable range, Cabify Lite, has sent its growth soaring in every market where it operates. The new category is made up of mid-range saloon cars with a driver, competing with the traditional taxi market. On top of this comes a new investment of 3.17 million euros (4 million dollars), led by earlier investors such as Seaya Ventures and Black Vine and with the participation of other Latin American investors. It is the first part of a Series B funding round that will be completed in the coming months.
In a short time, Cabify has become one of the Spanish startups that has raised the most investment, with a total of 16 million dollars. “With Cabify we have shown that there is a legal and cheaper alternative to the traditional taxi service, with excellent conditions for drivers. One of the things we are proudest of is providing quality work for the thousands of drivers who work with us,” explains Juan de Antonio, CEO and co-founder of Cabify.
This new step is a vote of confidence in the Spanish startup, which has done an excellent job of getting close to users’ needs when it comes to the different urban transport options. Breaking the traditional transport mould, the company offers different options for urban mobility with chauffeur-driven vehicles, including high-end cars, vehicles for groups and a more affordable range (under the Cabify Lite name), which in Spain is 20% cheaper than a taxi.
Cabify offers users many advantages, such as a fixed point-to-point price, automatic payment and a request and booking system based on geolocation through the app and the website. But it also represents a professional opportunity for drivers compared with the taxi sector, with fair pay and treatment in line with the law. In Spain, the latter is ensured because the company’s drivers operate with VTC licences (for chauffeur-driven hire vehicles), in line with current law.
Cabify, whose revenue is growing at a rate of 30% a month, currently has a staff of 100 professionals in four offices in four countries and provides work for more than 2,000 drivers.
How it works: door to door in 3 clicks
Through a simple, intuitive mobile app or through its website, www.cabify.es, users can request a driver who picks them up straight away, with an estimated average wait of 8 minutes, or book in advance by giving the pick-up time and their location. Payment is automatic, convenient and secure once the journey is over, using the registered credit card or PayPal account, with no need to carry cash.
About Cabify
Cabify is the first app in Europe that lets you hire different types of chauffeur-driven vehicles from your mobile phone or computer, with immediate confirmation of the service.
The app lets you enjoy chauffeur-driven vehicles while tracking their location on your phone at all times. Payment is completely secure through PayPal or credit card once the user has registered on the platform, and no transaction with the driver is needed. Cabify is pioneering new forms of collaborative consumption in mobility, promoting the shared use of chauffeur-driven vehicles instead of ownership in every country where it operates.
Large companies and foreign investment funds have wanted to be part of Cabify’s success. Examples include the recent investments by the Winklevoss twins and by the company Amadeus, and this latest one by Seaya Ventures and Black Vine, which together with other investors add up to a total of 16 million dollars.
Operating since December 2011, the service is available in Madrid, Barcelona, A Coruña, Málaga, Bilbao, Vitoria, Lima, Santiago de Chile and Mexico City, and is expected to expand to other countries soon.
You can use Cabify from iPhone, Android, BlackBerry and Windows Phone (from m.cabify.com), and from computers through the website www.cabify.es.
See also: How much can you really earn as an Uber driver?
Featured image: Cabify, Public domain, via Wikimedia Commons.
