Cabify integrates with EasyTaxi: how is the plan to not be just the "against"? of Uber in Latin America
A few days ago, Cabify announced the integration with EasyTaxi in Argentina, a movement that anticipates phase one of a broader strategy to become the main mobility platform in the region.
The company goes through a crucial moment during these hours. While in Spain, more precisely in Catalonia, was signed on Tuesday a decree that harms transport apps after pressure from taxi drivers, in Latin America continues to advance steadily.
Indeed, Maxi Mobility, the Spanish group that owns both applications, reported this same integration in Brazil, where EasyTaxi was originally born in 2011.
In Chile, the company went further: in addition to these apps, it also unified the Glovo services, of delivery; and Movo, rental of electric scooters, all from the same holding.
For Argentina, however, the company paves the way with the tactic of "step by step". Unlike Uber, Cabify is legal in the city of Buenos Aires, since its drivers must comply with a series of requirements, such as having a professional license and the possibility of issuing invoices. That is to say, to be attached to the monotributo.
This "prolixity" requires time. Although the company's local staff is focused on technological issues, it knows that legal derivations are decisive. As proof of this, the integration between EasyTaxi and Cabify was only enabled in a single Argentine city so far.
However, this same tactic allowed him not to be overtaken by the bad mood of Buenos Aires taxi drivers and, in silence, to grow in turnover 13 times since his arrival in the country in 2016.
Phase one
Cabify's plan in Argentina - and other markets in the region - is to progressively add new functions in a single application that brings together all Maxi Mobility apps, as is already happening in Chile. And become the main "platform of mobility as a service" of the Spanish-speaking world.
"A year ago we have been working on something that, indeed, was done in some cities in Latin America, which is the possibility of ordering a Cabify taxi," explains Julieta López, Head of Marketing of the local subsidiary, iProUP.
"At the product level it took a lot of work and you can already see the implementations: the first city was Rosario", he adds.
According to the executive, the firm's desire is "to be a single platform that has various transport alternatives integrated".
The company's roadmap for the integration of its services includes other cities in which Cabify already operates, such as Federal Capital, Conurbano, Mendoza and Córdoba.
"It will be decided according to the context, we have not defined the next one yet, the choice is related to adapting to the regulations of each place," says López.
As explained to iProUP "in this first stage, the interface of Cabify has a new category, the taxi, with which you can compare prices and alternatives."
For their part, the drivers should not do anything, the operation is "transparent": they receive the applications in the same application they use so far.
"The goal is for drivers to have greater possibilities and users, more options available," says López.
In this sense, Cabify launched its corporate service a few weeks ago, which allows companies to manage trips for their employees and even assign limits such as days, hours, zones, prices and vehicle categories, among other variables.
It is also possible to know the reason for each of the journeys made and establish alerts that trigger when a maximum of expenses is reached.
Another plus is its scope: the Business service - which already has 50,000 customers globally - is available in 35 cities around the world, so it will also be useful for companies that have subsidiaries in other countries.
This product promises up to 20% savings in the transportation budget of a company, hand in hand with a "5 star service", since it reserves its best cars and professional drivers for this proposal. And, most importantly, it is enabled by the government of the City of Buenos Aires.
The next stage
In dialogue with iProUP, the Cabify board did not confirm that this year they will also launch the integration with Glovo and Movo in Argentina. "It could be," says Lopez.
However, it offers some clue. "Glovo already has a presence in Cabify, with a button that lets you download the application."
The arrival of electric scooters seems less likely, at least in the short term. Most likely, clinging to his "low profile" tactic, expect to see Uber's predisposition to launch that same service in the country.
"We have not yet defined, we are taking into account the context, we are very focused on Easy Taxi, our goal is to be the transport alternatives platform and it requires a lot of analysis regarding permits", he says.
Cabify does not pay much attention to what Rappi, the main rival of its sister app Glovo, is doing. The Colombian startup is experimenting in the fintech segment, with the recent launch of RappiPay as a payment service with QR.
"From the parent company there are no intentions to diversify, we have guidelines in which all efforts are in mobility as a service," says López.
In Catalonia, Cabify is in the eye of the storm. As mentioned, the government signed a decree on Tuesday in which it states that transport apps must be contracted 15 minutes in advance and prohibits geolocation. The measure seeks that taxis have some advantage in the face of new mobility options.
The main companies holding permits for rental cars, the only ones authorized to operate with apps such as Uber or Cabify, had advanced that they would leave thousands of drivers in the street if the measure prospered.
"We do not see at the level indicators that there is any type of affectation here, the position of the firm is not to leave Barcelona," says López, showing that the local operation is safe from the Catalan situation.
To the Stock Exchange
The next step of the Maxi Mobility will be its exit to the Stock Exchange. Silence is still his main weapon: he has not yet announced which will be the date or the stock market where they will launch their public offering of shares.
There is much of the attention of the holding company, whose expansion plan will not be "geographical" - that is, it will not open new markets - but rather offer: it will introduce more and more mobility options through a single platform, in a staggered manner , in each of the places where it operates.
Currently, Cabify operates in 130 cities in Spain, Portugal and 14 nations in Latin America. And it closed 2017 with an annual growth of 500%.
Such expansion will have an economic guarantee: it has just received an investment of US $ 1,600 million from Rakuten, the "Japanese Amazon", which has injected capital into the firm since 2015. Endeavor Catalyst funds and Spanish and Latin American investors also contributed .
This would value the firm at US $ 1.4 billion, although it would leave it far from the more than US $ 100 billion that Uber would be worth, which also plans to go public this year.
For now, the strategy will be to continue maintaining the low profile. It served to him not to be in the sight of the taxi drivers, like Uber; and the delivery people, where Rappi's headquarters in Villa Crespo was the epicenter of the protests of the Platform Personnel Association (APP).
Maxi Mobility plans to continue growing in Latin America have no brake. Neither the conflict in Catalonia nor the trade union issues in Argentina are waning in the region.
In fact, the company projects launches a new round of investment in the first quarter to continue gaining territory in the region. Indeed, there is even talk of the installation of a second technological center, which could be located in Argentina or Brazil. In Rio de Janeiro, the company already invests more than in Spain.
With a clear objective and low profile, the Spanish holding continues at cruising speed with its plan: to provide all the mobility services of the new economy to "take over" the Latin American streets.
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