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Wellington Combined Taxis will add its 500 drivers to the Zoomy platform. In the photo left President Dave Clyma and General Manager Bahman Fakharzadeh.
After a rough ride thanks to Covid-19, taxi companies are getting into the ride-sharing app game, claiming that their jostling with global giants Uber and Ola will lead to cheaper fares.
The ridesharing company Zoomy was sold for an undisclosed sum to Taxicharge, a billing company jointly owned by 16 taxi companies in New Zealand.
The companies plan to add thousands of drivers to the platform, with taxi drivers operating both in the app and in traditional taxis.
The companies involved include Blue Bubble, First Direct, Auckland Co-Op Taxis, Wellington Combined Taxis and several regional firms.
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Wellington’s combo cabs will go out first, running a pilot test adding all of their drivers to Zoomy, with other regions following.
Company president Dave Clyma said Zoomy has always been able to compete on price with its larger competitors, but has struggled to get enough cars on the road.
“With our fleet of 500, wait time issues should go away,” said WCT President Dave Clyma.
As a group, the companies that buy Zoomy have more than 3,000 cars nationwide.
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Taxicharge companies represent more than 3,000 drivers nationwide.
An Uber spokesperson said his company had 7,700 registered drivers in New Zealand.
Zoomy was founded in 2012 by New Zealanders James Fisk and Neil MacDonald. It currently operates in Auckland, Wellington and Christchurch.
Clyma said that due to the higher level of training that taxi drivers must complete, compared to rideshare drivers, the company could offer better service at lower prices than its competitors.
All taxi drivers must wear a police uniform and background check, and there are cameras in all taxis.
“We want to configure Zoomy to be cheaper than the others, with a lower price increase and with drivers getting better performance,” said Clyma.
Wellington Combined CEO Bahman Fakharzadeh said that in recent years taxi companies had practically given up on the informal market and focused on the corporate market.
The acquisition of Zoomy would allow them to compete again for younger users and the informal market.
“People used to call a landline to order a taxi. Then the cell phone came along and that was the paradigm shift, ”Clyma said.
“It’s the way the markets are going, and we must embrace the future, so let’s be part of it. Anyone who feels left out of change ends up dying. So let’s evolve and embrace the new market. “
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Wellington combo taxis believe they can offer a safer experience than the competition.
Zoomy already takes the lowest cut from drivers, 15 percent compared to 28 percent for some rivals.
Taxi drivers who join Zoomy would only lose 7.5% to the company. Casual drivers will still be able to join Zoomy, at the original 15 percent rate.
The move comes two weeks after several major taxi companies warned that the industry could be on the brink of collapse due to a recession in business during the second Covid-19 shutdown.
Wellington taxi driver Maneer Toma said he regularly waited up to three hours between jobs, mainly due to a decrease in traffic to and from the airport.
An Uber spokesperson said: “We have set the bar for ride sharing and will continue to do so. “
“We continue to develop cutting-edge technology and features to help improve the safety of passengers and driving partners in the application.”
A spokesperson for Ola did not respond to a request for comment.
