In just 10 days after its Lagos Launch, Taxify might be backing away from the price war with Uber

Taxify launched on November 18, 2016, and users welcomed its entrance and expected a fall in prices or just enough competition to make Uber sit up and take notice. Taxify didn’t disappoint on the price part as they launched with a reasonable discount. Offering riders a 40% discount and up to 15% increased earnings for drivers.

But this email from the ridesharing app, less than 10 days after their entry into the market just proved a point. Rides are now at a discount of 25%, in a move to boost driver-partner earnings and still remain remain cheaper than the competition.

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Granted, there isn’t much these ridesharing apps can do differently, as they share most of the same features. Osarumen noted the reasons why Taxify’s entrance might not change much. The apps use the same Google Maps API, they all make use of the same pool of drivers, an increase in demand, without an equal increase in drivers will reduce the quality of user experience, customer infidelity, and the lowering of standards to meet demand. Basically, their only competitive point was their lower prices.

Success in a market that’s hinged on how low your prices can go compared to your nearest competitor does not make a good business model. The hike in prices just 10 days after Taxify’s launch shows that their pockets are probably not deep enough for such an endeavor.  

Judging by user’s reactions, the quality of Taxify’s service is subjective, as some users have had good experiences while using the app, and others have had really bad ones.

One might argue that the current 25% discount is still a discount nonetheless. With their new prices, the chances of a user choosing taxify over another ridesharing app, say, Uber will then fall on availability.  

A quick look at the Taxify app in my location right now will show that there are no cars available, next to it is the Uber app with about about 6 cars available. With the reduced price difference, my choice at this point should be obvious.

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L-R: Taxify’s app and Uber’s app