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LTDA (UK) newspaper.

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Belker:
19  May 2020||||TAXI5@TheLTDA||||www.ltda.co.uktrade.

“If you look at the origins of FreeNow it’s easy to see why they’re changing tack,” says Vinny Kearns, CEO of Xpert Taxis and NXT Taxis and former Vice President of the National Taxi Drivers Union.“In Ireland we first experienced the arrival of Hailo and this model was attractive for drivers as they only paid if they worked with the app and it was only 10% commission. It was a fully automated app, so the drivers got nothing extra to compare with the services of a traditional company - such as advice on legal matters, insurance, taxation and often just a friendly person to help with health or personal matters.”Kearns explains how they bought market share with vouchers and discounts but Hailo ended up failing and were bought out of receivership by MyTaxi. “We should at this point look at who lost out, such as the state coffers, investors and local communities...” says Kearns. “In a similar manner, MyTaxi with new investors and the same business model, blitzed the market with advertising...” adds Kearns. “They slightly altered the model, as drivers commission increased to 12%. MyTaxi then sought further investment and rebranded as FreeNow and raised the costs to drivers to 15% commission. They spent more on advertising in one year than the rest of the taxi companies together spent over a decade. But if you continue to do the same things again and again you get the same results as Hailo.”“As the motor industry (who continue to fund these loss making apps, are in crisis during Covid-19 and may never recoup lost sales), review their investments, you can see what is happening with the imposed merger of Kapten and FreeNow in an effort to stem further losses. Kapten, which is not in Ireland yet, have fared reasonably well as they are concentrating on the private hire market but FreeNow have not. They’re trying to flood the market with their discounts and their in-your-face-advertising.”Kearns adds that “In Ireland we do not have the private hire market that exists throughout the UK, and our National Transport Authority has stated clearly that Taxi Public Hire licenses are freely available - so there is no requirement for private hire other than for the top end executive car chauffeur market. If and when the motor industry ever reviews their policy of investment in taxi apps and seek to exit, they can only exit with substantial losses. If they acted similarly to other major investors, they would have cashed in their chips long ago.”
- Wim Faber.
https://www.taxinewspaper.co.uk/assets/files/downloads/Taxi_468.pdf

Rat Catcher:
Fair play to Vinny... still giving drivers a voice...

mercenary for hire:
I think being able to provide a taxi almost immediately is what proved to be Hailo/Mytaxi/freenow with their customers.

Advertising isn't as effective as good service.

Bob Shillin:

--- Quote from: mercenary for hire on May 20, 2020, 02:58:49 pm ---I think being able to provide a taxi almost immediately is what proved to be Hailo/Mytaxi/freenow with their customers.

Advertising isn't as effective as good service.

--- End quote ---
Yes more FN cars available at any time, traceability, easy card payments, immediate voice, and location contact with the driver, the magic of the interweb, the age profile of current taxi users who do everything from the mobile, and the lack of timely action/investment/fundraising by the trad despatchers.

dalymount:
The fact that Kearns made such a detailed. criticism of the opposition suggest to me anyway,he is in trouble.this is the same fukker who made sure tou couldnt get taxi insurance unless you joined his unuon.a friend of mine took him to task at that time on the Joe Duffy show.needles to say he denied it to the hilt

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