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International Internet Magazine. Baltic States news & analytics Friday, 23.08.2019, 09:55

Revenue of Taxify grows 6-fold in 2017

BC, Tallinn, 09.07.2018.Print version
Revenue of the Estonian ride-sharing service Taxify in 2017 increased six times compared to 2016, totaling 18 million euros, while the company's net loss totaled 11 million euros, informs LETA/BNS.

"Taxify's revenue was made up of commission fees from the taxi service offered with the help of the platform. Revenue increased six-fold last year, the sum total of the cost of rides made on Taxify's platform however increased ten times. The sum total of the rides made in 2018 is an estimated one billion euros, both as a result of geographic expansion as well as technological developments. Therefore, we are expecting a manyfold increase in volumes also this year, while we will also hire hundreds of employees globally," Taxify CEO and co-founder Markus Villig said in a press release.

The company's loss last year totaled 11 million euros. According to Villig, loss was to be expected as the company has focused on expansion. "If we look at the result by countries, then on mature markets, where main investments have already been done, we are profitable. As a whole, however, we are clearly growth oriented and for this we have also raised additional capital from investors," Villig said.

The Chinese ride-hailing app Didi Chuxing was included in the list of Taxify's investors as a strategic partner in 2017. Taxify this year has raised altogether 175 million dollars, which takes its valuation to the one billion dollar mark, with the leading investor being the German automotive giant Daimler. The company in the event of suitable conditions is deliberating raising additional capital still within 2018 to finance continued expansion.

Taxify's largest markets in 2017 were the Baltic countries, France and the Republic of South Africa. Since the beginning of 2018, the company has expanded in several new and existing destination countries, including Australia, Portugal and Mexico.

Taxify as at the end of last year employed 350 contract employees, while Taxify's global team today includes 500 people. The company has 10 million customers across the world, while 500,000 drivers use the platform.

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