Molouk Y. Ba-Isa
Saudi Gazette
Following Easy Taxi’s successful launch in Riyadh and Jeddah, the company is gearing up now to offer services within the next two months in Dammam, Al Khobar and Dhahran. Dr. Mahmoud Fouz, CEO, Easy Taxi Middle East stated that the service will come to other Saudi cities, including Makkah and Medinah, by the end of the year.
Easy Taxi (www.easytaxi.com) is the largest taxi booking app in the world. The application connects taxi drivers and passengers, allowing them to experience a fast, convenient and safe ride, with just a tap of a button. Easy Taxi is available for Android, iOS, Blackberry and Windows Phone devices. Easy Taxi corporate solutions are also on offer.
Founded in April 2012 in Rio de Janeiro, Brazil, Rocket Internet’s Easy Taxi pioneered online taxi service in Latin America. iMENA Holdings’s $7 million investment in Easy Taxi brought the app and the service it provides to the Middle East. iMENA’s regional partners include the Etisalat Group and their operating companies across the region, which resulted in the recent announcement of Etihad-Etisalat (Mobily) becoming a shareholder in Easy Taxi. Fouz put Mobily’s investment at $1 million.
In addition to Saudi Arabia, Easy Taxi is operational in Jordan, Qatar, Kuwait and most recently, Bahrain. While there is a regional team in Dubai, Fouz explained that the management of the service in each city is handled by a team set up for that specific market. When Easy Taxi is ready to launch in a city, the local team approaches the community of taxi drivers and the benefits of the service are explained.
“The model in how taxis operate in the Kingdom is that the driver rents the car from the taxi company and the revenue that he has at the end of the day is whatever he has earned minus the rental fee that must be paid to the taxi company,” said Fouz. “For the drivers it is essential that they provide as many rides as possible. Our solution allows them to get a high number of passengers without having to drive around the streets looking for fares, coping with traffic and just generally being inefficient.”
Through word of mouth, drivers hear about the service and there is rapid sign up. Easy Taxi staff ensure that only legitimate taxi drivers are allowed to join the service and copies of all legal documents for each driver are kept on file. In Riyadh and Jeddah, more than 3,500 taxi drivers can now be reached through Easy Taxi.
Fouz said that about 80 percent of the Easy Taxi users are women, who like the idea that they can have a taxi come directly to their location, they can watch for the car’s arrival and if they forget something in the vehicle the driver is easily traceable.
“This last point is very important,” said Fouz. “Every day we get at least one report of a customer who forgot something in a taxi. Sunglasses and just purchased items are the most common things left behind. Customers are delighted when the driver shows up with their missing belongings. Under the old system of hailing a taxi from the street, there would be no hope of that.”
How does Easy Taxi make money? The company’s business model is to “take a cut” from the driver for each ride gained through Easy Taxi. Fouz clarified that in this ramp up period, none of the taxi drivers are yet paying those fees.
“Very soon will be offering cashless payment options which include credit card payments, but will also include a way for companies to have an account with us,” Fouz said. “The way we see it is that once more people choose cashless options, then we will start to owe money to the drivers. This money that we owe to the drivers for the cashless rides, will allow us to take our commission not only for the cashless rides but for all rides that we make available to the driver.”
And driver’s beware! The app allows the passenger to rate the trip. If a driver is a speed demon or gets aggressive with a customer, a poor rating can be given for the trip, along with details of the negative experience. Easy Taxi staff investigate such feedback and if the driver is found to be at fault he will either be given a warning or his access to the system will be cut.
“Right now, both passengers and drivers are very unhappy with taxi services in Saudi Arabia,” said Fouz. “Easy Taxi brings benefits to both passengers and drivers, reduces road congestion and supports the transportation requirements of the business community. Better management of this important means of transportation will also have positive economic outcomes. We look forward to Easy Taxi launching in every major market in Saudi Arabia by the end of the year.” Easy Taxi will be launched in Dammam within two months.