![Cabifycompany](https://upload.wikimedia.org/wikipedia/commons/3/3b/Cabifycompany.jpg)
Cabify is a Spanish
ridesharing company
A ridesharing company (also known as a transportation network company, ride-hailing service; the vehicles are called app-taxis or e-taxis) is a company that, via websites and mobile apps, matches passengers with drivers of vehicles for hire tha ...
which provides
vehicles for hire
A vehicle for hire is a vehicle providing private transport or shared transport for a fee, in which passengers are generally free to choose their points or approximate points of origin and destination, unlike public transport, and which they ...
via its
smartphone
A smartphone is a portable computer device that combines mobile telephone and computing functions into one unit. They are distinguished from feature phones by their stronger hardware capabilities and extensive mobile operating systems, whic ...
mobile app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a phone, tablet, or watch. Mobile applications often stand in contrast to desktop applications which are designed to run on d ...
. Vehicles are driven by self-employed service providers. Operating in
Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
and
Latin America
Latin America or
* french: Amérique Latine, link=no
* ht, Amerik Latin, link=no
* pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
(
Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
,
Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
,
Colombia
Colombia (, ; ), officially the Republic of Colombia, is a country in South America with insular regions in North America—near Nicaragua's Caribbean coast—as well as in the Pacific Ocean. The Colombian mainland is bordered by the Car ...
,
Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
,
Panama
Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Cos ...
,
Ecuador
Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ''Eku ...
,
Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...
,
Dominican Republic
The Dominican Republic ( ; es, República Dominicana, ) is a country located on the island of Hispaniola in the Greater Antilles archipelago of the Caribbean region. It occupies the eastern five-eighths of the island, which it shares wit ...
, and
Uruguay
Uruguay (; ), officially the Oriental Republic of Uruguay ( es, República Oriental del Uruguay), is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast; while bordering ...
), the company offers two services, one for businesses and another for individuals.
Cabify was founded in May 2011 by Juan de Antonio, and raised a total of $304 million from investment funds.
History
Development in Spain
Cabify was founded in May 2011 by Juan de Antonio, a Spanish
entrepreneur
Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values th ...
,
telecommunications engineer
Telecommunications Engineering is a subfield of electrical engineering which seeks to design and devise systems of communication at a distance. The work ranges from basic circuit design to strategic mass developments. A telecommunication engine ...
, and graduate of
Stanford University
Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is consider ...
.
De Antonio was motivated to create a
vehicle for hire
A vehicle for hire is a vehicle providing private transport or shared transport for a fee, in which passengers are generally free to choose their points or approximate points of origin and destination, unlike public transport, and which they ...
company after receiving negative market feedback due to high upfront costs when trying to introduce electric vehicles in European
cities
A city is a human settlement of notable size.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Penguin.Kuper, A. and Kuper, J., eds (1996) ''The Social Science Encyclopedia''. 2nd edition. London: Routledge. It can be def ...
.
De Antonio started discussing the idea with
Adeyemi Ajao Adeyemi is a Yoruba name that means "The crown befits me". It could also mean crown is meant for me. The prefix 'Ade' which means Crown is typically reserved for people born into the royal family.
Given name
* Adeyemi Abayomi, Nigerian boxer
* A ...
, one of the founders of
Tuenti
Tuenti Technologies, S.L.U is a Mobile virtual network operator, mobile virtual network operator (MVNO) that operates with the Tuenti brand owned by Telefónica. It is a Spain-based tech company that focuses on providing a cloud-based services th ...
, and
Brendan F. Wallace. Cabify set up its first transportation network in
Madrid
Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
, and the idea attracted investors from
Silicon Valley
Silicon Valley is a region in Northern California that serves as a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical areas San Mateo County ...
. Juan de Antonio stayed as the CEO, while Ajao and Wallace became advisors as they continued leading their own startup.
Samuel Lown joined as the CTO in July with Michael Koper and Adrian Merino joining the team two months later.
[
Initially, the service was called "Executive" and was intended for a niche group, with high-end vehicles that were slightly more expensive than ]taxi
A taxi, also known as a taxicab or simply a cab, is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers, often for a non-shared ride. A taxicab conveys passengers between locations of their choice ...
s. In February 2012, Cabify had 20,000 users and completed nearly 3,000 rides in Madrid alone. In the next two years, more than 150 taxi drivers in Madrid joined the company.
In June 2013, the company launched Cabify Lite, with mid-range vehicles that were usually cheaper than taxis. By the end of 2015, Cabify Lite represented 85% of the company's offer.[ In 2016, the company partnered with ]Waze
Waze (; he, ווייז, label=Hebrew), formerly FreeMap Israel, is a subsidiary company of Google that provides satellite navigation software on smartphones and other computers that support the Global Positioning System (GPS). In addition to ...
to complete its trips more quickly and improve driver and passenger safety. In 2016, Cabify launched in Portugal
Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...
(Lisbon
Lisbon (; pt, Lisboa ) is the capital and largest city of Portugal, with an estimated population of 544,851 within its administrative limits in an area of 100.05 km2. Grande Lisboa, Lisbon's urban area extends beyond the city's administr ...
),
The company operates in eight Spanish cities as of 2017 – Madrid
Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
, Barcelona
Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within ci ...
, Valencia
Valencia ( va, València) is the capital of the Autonomous communities of Spain, autonomous community of Valencian Community, Valencia and the Municipalities of Spain, third-most populated municipality in Spain, with 791,413 inhabitants. It is ...
, Bilbao
)
, motto =
, image_map =
, mapsize = 275 px
, map_caption = Interactive map outlining Bilbao
, pushpin_map = Spain Basque Country#Spain#Europe
, pushpin_map_caption ...
, Vitoria
Vitoria or Vitória may refer to :
People
* Francisco de Vitoria (c. 1483–1546), a Spanish Renaissance theologian
* Alberto Vitoria (1956–2010), Spanish footballer
* Rui Vitória (born 1970), Portuguese retired footballer
* Steven Vitória (b ...
, A Coruña
A Coruña (; es, La Coruña ; historical English: Corunna or The Groyne) is a city and municipality of Galicia, Spain. A Coruña is the most populated city in Galicia and the second most populated municipality in the autonomous community and s ...
, Málaga
Málaga (, ) is a municipality of Spain, capital of the Province of Málaga, in the autonomous community of Andalusia. With a population of 578,460 in 2020, it is the second-most populous city in Andalusia after Seville and the sixth most pop ...
, and Sevilla
Seville (; es, Sevilla, ) is the capital and largest city of the Spain, Spanish autonomous communities of Spain, autonomous community of Andalusia and the province of Seville. It is situated on the lower reaches of the Guadalquivir, River Gua ...
– and on the island of Tenerife
Tenerife (; ; formerly spelled ''Teneriffe'') is the largest and most populous island of the Canary Islands. It is home to 43% of the total population of the archipelago. With a land area of and a population of 978,100 inhabitants as of Janu ...
. In July 2018, a violent taxi-driver strike in Barcelona forced the company to suspend its services until further notice. In September 2018, drivers for ride-hailing services including Cabify protested against the Spanish government's proposition to tighten up rules for ride-hailing services. In January 2019, Cabify suspended its operations in Barcelona after the Catalan government voted a new rule requiring a 15-minute notice for booking a car. Its service was restored in Barcelona in March 2019. A specific system architecture for Catalonia alone was developed to comply with the region's harsher laws.
In May 2022, the company received a 40 million loan from the European Investment Bank
The European Investment Bank (EIB) is the European Union's investment bank and is owned by the EU Member States. It is one of the largest supranational lenders in the world. The EIB finances and invests both through equity and debt solutions ...
to purchase a fleet of electric vehicles
An electric vehicle (EV) is a vehicle that uses one or more electric motors for propulsion. It can be powered by a collector system, with electricity from extravehicular sources, or it can be powered autonomously by a battery (sometimes cha ...
for use in Spain, in order to meet the European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
's goal of eliminating carbon emissions.
In Latin America
A year after its foundation in Spain, Cabify launched its operations in Latin America
Latin America or
* french: Amérique Latine, link=no
* ht, Amerik Latin, link=no
* pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
, opening subsidiaries in Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
, Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
and Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
.
Within a few years, 80% of Cabify's income would come from the American continent.
In 2016, Cabify increased expansion in Mexico. The Hoy No Circula
Hoy No Circula (literally in Spanish: "today our cardoes not circulate", known as No-drive days) is the name of an environmental program intended to improve the air quality of Mexico City. A similar coordinated program operates within the State ...
program in Mexico City
Mexico City ( es, link=no, Ciudad de México, ; abbr.: CDMX; Nahuatl: ''Altepetl Mexico'') is the capital and largest city of Mexico, and the most populous city in North America. One of the world's alpha cities, it is located in the Valley o ...
generated a 200% increase in demand. During that period, Cabify reduced its tariffs by 25% to motivate the inhabitants to use alternative means of transportation. Also, it donated a part of its revenues to UNICEF
UNICEF (), originally called the United Nations International Children's Emergency Fund in full, now officially United Nations Children's Fund, is an agency of the United Nations responsible for providing Humanitarianism, humanitarian and Devel ...
. At that time, the company operated in six Mexican cities: Mexico City
Mexico City ( es, link=no, Ciudad de México, ; abbr.: CDMX; Nahuatl: ''Altepetl Mexico'') is the capital and largest city of Mexico, and the most populous city in North America. One of the world's alpha cities, it is located in the Valley o ...
, Monterrey
Monterrey ( , ) is the capital and largest city of the northeastern state of Nuevo León, Mexico, and the third largest city in Mexico behind Guadalajara and Mexico City. Located at the foothills of the Sierra Madre Oriental, the city is anchor ...
, Querétaro
Querétaro (), officially the Free and Sovereign State of Querétaro ( es, Estado Libre y Soberano de Querétaro, links=no; Otomi language, Otomi: ''Hyodi Ndämxei''), is one of the Political divisions of Mexico, 32 federal entities of Mexico. I ...
, Puebla City
Puebla de Zaragoza (; nah, Cuetlaxcoapan), formally Heroica Puebla de Zaragoza, formerly Puebla de los Ángeles during colonial times, or known in English simply as Puebla, is the seat of Puebla Municipality. It is the capital and largest city ...
, Guadalajara
Guadalajara ( , ) is a metropolis in western Mexico and the capital of the list of states of Mexico, state of Jalisco. According to the 2020 census, the city has a population of 1,385,629 people, making it the 7th largest city by population in Me ...
and Toluca
Toluca , officially Toluca de Lerdo , is the States of Mexico, state capital of the State of Mexico as well as the seat of the Municipality of Toluca. With a population of 910,608 as of the 2020 census, Toluca is the fifth most populous city in M ...
.
In 2016, Cabify started operating in Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...
(Buenos Aires
Buenos Aires ( or ; ), officially the Autonomous City of Buenos Aires ( es, link=no, Ciudad Autónoma de Buenos Aires), is the capital and primate city of Argentina. The city is located on the western shore of the Río de la Plata, on South ...
and Rosario
Rosario () is the largest city in the central provinces of Argentina, Argentine province of Santa Fe Province, Santa Fe. The city is located northwest of Buenos Aires, on the west bank of the Paraná River. Rosario is the third-most populous ci ...
), Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
(Sao Paulo
SAO or Sao may refer to:
Places
* Sao civilisation, in Middle Africa from 6th century BC to 16th century AD
* Sao, a town in Boussé Department, Burkina Faso
* Saco Transportation Center (station code SAO), a train station in Saco, Maine, U.S ...
), Costa Rica
Costa Rica (, ; ; literally "Rich Coast"), officially the Republic of Costa Rica ( es, República de Costa Rica), is a country in the Central American region of North America, bordered by Nicaragua to the north, the Caribbean Sea to the no ...
, Bolivia
, image_flag = Bandera de Bolivia (Estado).svg
, flag_alt = Horizontal tricolor (red, yellow, and green from top to bottom) with the coat of arms of Bolivia in the center
, flag_alt2 = 7 × 7 square p ...
, Ecuador
Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ''Eku ...
, and Panama
Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Cos ...
. It also announced it would expand its current services to new cities, such as Valparaíso
Valparaíso (; ) is a major city, seaport, naval base, and educational centre in the commune of Valparaíso, Chile. "Greater Valparaíso" is the second largest metropolitan area in the country. Valparaíso is located about northwest of Santiago ...
and Viña del Mar
Viña del Mar (; meaning "Vineyard of the Sea") is a city and commune on central Chile's Pacific coast. Often referred to as ("The Garden City"), Viña del Mar is located within the Valparaíso Region, and it is Chile's fourth largest city w ...
in Chile.
Cabify started offering services to the corporate sector in Bogotá
Bogotá (, also , , ), officially Bogotá, Distrito Capital, abbreviated Bogotá, D.C., and formerly known as Santa Fe de Bogotá (; ) during the Spanish period and between 1991 and 2000, is the capital city of Colombia, and one of the larges ...
in 2015. Cabify late opened in Cali
Santiago de Cali (), or Cali, is the capital of the Valle del Cauca department, and the most populous city in southwest Colombia, with 2,227,642 residents according to the 2018 census. The city spans with of urban area, making Cali the second ...
in April 2016 and announced its expansion to Medellín
Medellín ( or ), officially the Municipality of Medellín ( es, Municipio de Medellín), is the second-largest city in Colombia, after Bogotá, and the capital of the department of Antioquia. It is located in the Aburrá Valley, a central re ...
and the Caribbean region
The Caribbean region of Colombia or Caribbean coast region is in the north of Colombia and is mainly composed of 8 departments located contiguous to the Caribbean.[Barranquilla
Barranquilla () is the capital district of Atlántico Department in Colombia. It is located near the Caribbean Sea and is the largest city and third port in the Caribbean Coast region; as of 2018 it had a population of 1,206,319, making it Col ...]
and Cartagena. It planned to offer its services in Pereira, Manizales
Manizales () is a city in central Colombia. It is the capital of the Caldas Department, Department of Caldas, and lies near the Nevado del Ruiz volcano.
Currently, the city is the main center for the production of Colombian coffee and an importa ...
and Bucaramanga
Bucaramanga () is the capital and largest city of the department of Santander, Colombia. Bucaramanga has the fifth-largest economy by GDP in Colombia, has the lowest unemployment rate and has the ninth-largest population in the country, with 68 ...
later in the year.
In March 2017, the killing of the 19-year-old girl Maria Castilla by a Cabify driver in Mexico raised the question of safety with ride-hailing services. Cabify installed a panic button in its app to prevent other similar crimes.
Investments
In September 2012, the company raised a $4 million Series Seed investment round from Black Vine, Belgian fund Emerge, angel investor
An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an individual who provides capital for a business or businesses start-up, usually in exchange for convertible debt or owners ...
s sourced via AngelList
AngelList is a U.S. website for startups, angel investors, and job-seekers looking to work at startups. Founded in 2010, it started as an online introduction board for tech startups that needed seed funding. Since 2015, the site allows startup ...
(including the Winklevoss twins), and a series of Latin American investors.
A second $8-million investment was round up in April 2014, and led by Seaya Ventures.
The company's biggest investor, Japanese e-commerce giant Rakuten
() is a Japanese technology conglomerate based in Tokyo, founded by Hiroshi Mikitani in 1997. Centered around Rakuten Ichiba, its businesses include financial services utilizing financial technology, as well as digital content and communicati ...
, which is also a lead investor in taxi-app player Lyft
Lyft, Inc. offers mobility as a service, ride-hailing, vehicles for hire, motorized scooters, a bicycle-sharing system, rental cars, and food delivery in the United States and select cities in Canada. Lyft sets fares, which vary using a dynamic ...
, made its first investment in Cabify in October 2015, when it provided capital for a further push into Latin America. Cabify's revenues had risen to $40m, from $10m in 2014 and $1m in 2013. In April 2016, Rakuten invested $92 million more in Cabify. Rakuten's investment was a part of a round of funding in which Cabify raised $120 million.[ After the 2016 financing, Cabify was valued at around $320 million.
In January 2018, Cabify raised an additional $160 million, valuing the company at $1.4 billion. The company cut down 10% of its workforce and reorganized its top management.
]
Description
Service
Cabify operates as the contact point between customers and private drivers by means of its mobile app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a phone, tablet, or watch. Mobile applications often stand in contrast to desktop applications which are designed to run on d ...
for Android and iPhone, as well as its web page. Users pay for the service via their credit card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
or PayPal
PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper ...
account, with cash payments introduced in 2016. The payment system is protected by Symantec's Verisign
Verisign Inc. is an American company based in Reston, Virginia, United States that operates a diverse array of network infrastructure, including two of the Internet's thirteen root nameservers, the authoritative registry for the , , and gener ...
security. Cabify has 400 permanent employees. Cabify offers three core classes of vehicles: ''Executive'', with vehicles such as Mercedes S-Class
The Mercedes-Benz S-Class, formerly known as ''Sonderklasse'' (German for "special class", abbreviated as "S-Klasse"), is a series of full-sized luxury sedans, limousines and armored sedans produced by the German automaker Mercedes-Benz, a divis ...
or Audi A8
The Audi A8 is a full-size luxury sedan manufactured and marketed by the German automaker Audi since 1994. Succeeding the Audi V8, and now in its fourth generation, the A8 has been offered with both front- or permanent all-wheel drive—and in s ...
, ''Lite'' (e.g. Toyota Avensis
The is a mid-size/ large family car built in Derbyshire, United Kingdom by the Japanese automaker Toyota from October 1997 to August 2018. It was the direct successor to the European Carina E and was available as a four-door saloon, five-door l ...
), or ''Group'' (6 persons).
The app shows the location of drivers to the customer, calls the closest driver, directs the driver, and plays the role of intermediary for payments, taking a commission of around 20%. Once the ride is over, Cabify sends a summary to the customer's mobile phone, including information such as the distance, duration and cost of the ride. The customer can evaluate the ride and the driver. Locations can be saved as favorites to be accessed more easily. The system has a waiting queue, where it keeps looking for a ride over a period indicated by the customer (from 5 to 30 minutes). The service can be reserved up to 30 days in advance. The app integrates with Waze
Waze (; he, ווייז, label=Hebrew), formerly FreeMap Israel, is a subsidiary company of Google that provides satellite navigation software on smartphones and other computers that support the Global Positioning System (GPS). In addition to ...
.[ The service includes the possibility of real-time tracking between departure and arrival. If the signal is lost for more than sixty seconds or the route changes considerably, the passenger will receive a telephone call verifying their comfort and safety.] The app allows the customer to choose the type of vehicle (Executive, Lite or Group), and offers a wide range of free options, such as the driver speaking a foreign language, the desired air-conditioning temperature, the driver opening the door or calling upon arrival, and the desired radio station.
The company serves two types of clients: corporate and private passengers, with the former taking up 60% of Cabify's offer. Cabify claims corporate users are the focus of the company's service offering.
Other services
Cabify also offers a number of other services depending on the city, including: ''Cabify Express'', a service of immediate delivery via moto taxis, in Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
; ''Cabify Taxi'', a service for accessing local taxi cabs, in Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
; ''Cabify City'', a service of independent drivers, in Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
; ''Cabify Bike'', a service where users can ride with their bikes in Chile, and ''Cabify Cash'', a service where users pay with cash instead of credit cards, in Peru.
Cabify also has a transportation option for disabled persons. Since then, the service has been opened in Chile, Spain and Peru. Cabify's plans for the future include global expansion of ''Cabify Access'', its service for the disabled
Disability is the experience of any condition that makes it more difficult for a person to do certain activities or have equitable access within a given society. Disabilities may be cognitive, developmental, intellectual, mental, physical, se ...
.
The company is trying to grow in a sound way by forging relationships with local businesses, hiring both traditional taxis and regular consumers as Cabify drivers, and placing heavy emphasis on repeat customers, for example by steering its cars in peak hours
A rush hour (American English, British English) or peak hour (Australian English) is a part of the day during which traffic congestion on roads and crowding on public transport is at its highest. Normally, this happens twice every weekday: on ...
towards habitual users rather than those that offer the most lucrative one-off fare. Because of this approach, the company claims that it has no need to subsidize drivers or offer steep discounts to users, unlike many of its rivals.
Pricing
Cabify charges per kilometer of the optimal route. This means that it optimizes the distance between two points so the passenger is paying for the most direct route regardless of the actual route chosen by the driver. Uber, in comparison, charges according to minutes and kilometers spent inside the vehicles.
Moreover, Cabify has fixed pricing (Since December this was removed in the Brazilian territory), where the price per kilometer does not change depending on the time of the day. Uber, on the other hand, has dynamic prices, which change depending on peak hours
A rush hour (American English, British English) or peak hour (Australian English) is a part of the day during which traffic congestion on roads and crowding on public transport is at its highest. Normally, this happens twice every weekday: on ...
, weather and local events. Cabify described it as a socially motivated feature: "We are not something that the driver does in his free time. We are his main source of income. We don't think it should be something occasional, but a job that can sustain a family."
Drivers
Cabify cars and drivers pass a rigorous selection and filtration process. All drivers must pass psychometric
Psychometrics is a field of study within psychology concerned with the theory and technique of measurement. Psychometrics generally refers to specialized fields within psychology and education devoted to testing, measurement, assessment, and ...
tests, tests for alcohol and drugs, and a city orientation test. They must show they have no criminal record
A criminal record, police record, or colloquially RAP sheet (Record of Arrests and Prosecutions) is a record of a person's criminal history. The information included in a criminal record and the existence of a criminal record varies between coun ...
or traffic violations. The murder of a young female customer in Puebla, Mexico, by one of Cabify's drivers raises important questions about the credibility of any filtration process carried out by the company.
All drivers are required to wear professional attire, to be polite, to attend to the needs of the passenger which may include additional services such as in-car reading materials and Cabify-branded water. Drivers are required to take the fastest way to the destination. If they change the route without the passenger's approval, they can be penalized by Cabify.
Legal position
Cabify tries to work with governments to find a way to operate legally. In the case of Spain, all the drivers work as "collaborators" for Cabify, and they do this under a commercial contract for the supply of services, either as part of a company or as freelance owners of a VTC vehicle fleet (Chauffeur Driven Vehicle). They can be either the direct suppliers of the service or provide it through hired personnel under the Social Security's legislation. Cabify doesn't take care of the registration of self-employed workers. Instead, they need to be considered as such, before they begin to collaborate with the company. Cabify's drivers don't receive monthly or yearly fixed salaries from the company. Their income comes from the invoicing of journeys and the amount of services they have provided.
Cabify's control system allows them to keep track of all payments and charges that come from them because journeys are not allowed to be paid in cash. This helps eliminate the informal economy and the precariousness currently present in the rest of urban transportation's segments.
The taxi union of Santiago
Santiago (, ; ), also known as Santiago de Chile, is the capital and largest city of Chile as well as one of the largest cities in the Americas. It is the center of Chile's most densely populated region, the Santiago Metropolitan Region, whose ...
protested against Cabify and Uber, announcing a national strike in May 2016. Several Chilean celebrities who use Cabify's services, including Cristián Sánchez and Renata Ruiz
Renata Ruiz Pérez (born 9 May 1984) is a Chilean model. She was the winner of the contest Elite Model Look Chile 2001. In September of the same year she took part in the international contest (Nice, France), where she competed with more than 60 ...
, supported the company by filming a video where they give their reasons for using Cabify. After trying to find a legal solution with the Chilean government for over six months without success, Cabify launched Cabify City, which connects independent car owners with users on the Cabify app. Cabify City is its first unregulated service.
On May 9, 2017, the Colombian Superintendence of Ports and Transport fined Cabify $516 million Colombian pesos (about $173,240 United States dollars), as it "facilitated the transgression of transport laws stated by the Government of Colombia, by allowing personal transport services to operate in special transport vehicles that were not authorized by the Ministry of Transport for this modality of services".
References
External links
* {{Official website, https://cabify.com
Companies based in Madrid
Transport companies established in 2011
Ridesharing companies
Location-based software
Road transport in Spain
Online companies of Spain
Transport companies of Spain
Spanish brands
2011 establishments in Spain
Internet technology companies of Spain