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Taxify responds to TfL app ban in London

After today’s announcement of TfL halting Taxify trading, the company has responded to the removal of its license.

A statement from the company reads;

“Taxify has done everything in its power to comply with the local regulations, but is faced by aggression from TfL. Taxify successfully launched its London ride-hailing service on Tuesday, with over 3,000 drivers signed up, 7,000 drivers due to be on-boarded and over 30,000 customers downloading the app in the first three days. This incredible response shows the huge demand for greater choice in the monopolised London ride-hailing market.

Over the last 48 hours, questions have been raised regarding the legality of its operations and Taxify would like to make clear that it has made every attempt possible to comply with TfL regulations. To launch its service to London customers, the business purchased a TfL licensed operator, running Taxify as a technology platform directing bookings to City Drive Services registered drivers.

This arrangement is completely compliant within the existing UK law, and is a common practice within the industry. Taxify does not need a license, as any licensed operator can use any technology platform they choose to facilitate bookings between private hire drivers and riders. In this case, City Drive Services was the company authorised by TfL to dispatch bookings and therefore Taxify had no need to get a license for the software separately.

TfL has raised concerns about Taxify’s license directly to its drivers instead of to the platform. Despite multiple attempts at communication with to resolve the issue, TfL has not provided any guidance. In an effort to stay fully compliant, and to protect drivers from further harassment and scrutiny by TfL, Taxify voluntarily paused the use of its app by City Drive Services drivers so that it can seek clarification with the regulator. 

TfL has issued a letter stating they are revoking the license held by City Drive Services due to a change in the Company’s Director, who has no involvement with the operation or the business practice. Taxify strongly believe that the reasons for TfL revoking City Drive Services’ license are invalid, without merit, and outside of existing law. The action by TfL is denying London customers a valid choice within the market which has limited options. Taxify is appealing against TfL’s decision immediately.

Taxify are immensely frustrated that TfL have not been willing to co-operate nor meet to discuss its operating licence and entrance into the London market. Taxify is a fully compliant ride-hailing technology provider, already operating in 19 other countries and major European cities, where it is successfully delivering a new competitive ride-hailing platform to the benefit of both customers and drivers. Taxify remain committed to playing a key role in the London ride-hailing market.

As one of Europe’s leading start-ups, Taxify are a force for good in the worldwide ride-hailing market, providing important competition to the current market leader which uses its market position to mistreat drivers and take advantage of customers. London customers and drivers are crying out for competition against what has become an unchallenged monopoly.

TfL’s action to revoke City Drive Services’ license does not benefit the customer and should be challenged by all those that favour a fair and safe ride-hailing market with improved conditions for both drivers and customers. Taxify are keen to find a solution to this issue and strongly urge TfL to meet with the company at the earliest possible opportunity.