Kiwi taxis get in on the Uber game, buying ride-sharing company Zoomy

Wednesday, 30 September 2020

Wellington Combined Taxis will add their 500 drivers to the Zoomy platform. Pictured from left chairman Dave Clyma and general manager Bahman Fakharzadeh.

After a rough ride thanks to Covid-19, taxi companies are getting in on the ride sharing app game, claiming their jostling with global giants Uber and Ola will lead to cheaper fares.

Ride-sharing company Zoomy was sold for an undisclosed sum to Taxicharge, a billing company owned jointly by 16 taxi firms across New Zealand.

The companies plan to add thousands of drivers to the platform, with taxi drivers operating on both the app and as tradition taxis.

Companies involved include Blue Bubble, First Direct, Auckland Co-Op Taxis, Wellington Combined Taxis, and several regional firms.

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Taxicharge companies represent over 3000 drivers nationwide.

Wellington Combined Taxis will jump first, running a pilot test by adding all their drivers to Zoomy, with other regions to follow.

Company chairman, Dave Clyma said Zoomy has always been able to compete on price with its bigger competitors, but had struggled to get enough cars on the road.

“With our fleet of 500, the waiting time problems should disappear,” WCT chairman Dave Clyma said.

As a group, the companies buying into Zoomy have more than 3000 cars nationwide.

An Uber spokesperson said their company had 7,700 drivers registered 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 because of the higher level of training taxi drivers must complete, compared to ride-share drivers, the company would be able to offer a better service at a low prices than its competitors.

Wellington Combined Taxis believe they can offer a safer experience than competitors.

All taxi drivers must wear a uniform and police background checks, and there are cameras in every taxi.

“We want to set Zoomy up to be cheaper than the others, with less surge pricing, and with the drivers getting a better return,” Clyma said.

Wellington Combined general manager Bahman Fakharzadeh said in recent years taxis companies had all but given up on the casual market to ride-sharing companies and focused on corporate market.

The acquisition of Zoomy would allow them to compete for younger users and the casual market again.

“People used to ring on a landline for a taxi. Then the cellphone came in and that was the paradigm shift,” Clyma said.

“It’s the way the markets going, and we need to embrace the future, so let’s be part of it. Anybody who sits outside change eventually just dies. So let’s evolve and embrace the new market.”

Zoomy already takes the lowest cut from drivers, at 15 per cent compared to as high as 28 per cent for some rivals.

Taxi drivers who join Zoomy, would only lose 7.5 per cent to the company. Casual drivers will still be able to join Zoomy, at the original rate of 15 per cent.

The move comes two weeks after several major taxi companies warned the industry could be on the brink of collapse due to a downturn in business during the second Covid-19 lockdown.

Wellington taxi driver Maneer Toma said he regularly waited as much as three hours between jobs, mostly due to a downturn 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 build cutting-edge technology and features to help improve safety for riders and driver-partners on the app.”

An Ola spokesperson did not respond to a request for comment.