After its recent launch in London, Taxify said it had suspended operations due to questions raised by authorities over its legal status.
The company released a statement explaining it had “temporarily stopped operations to clarify its legal position with the regulator and reach a resolution so that services can return to normal.”
Transport for London (TfL), the organization responsible for London’s transportation system, confirmed that it had advised the startup to cease accepting bookings, due to Taxify not being registered in London as a private hire vehicle operator, consequently not having the right to accept ride bookings.
Taxify has previously cited TfL’s lack of interest in dialogue or offering tips to ensure their application is approved. According to Taxify’s CEO Markus Villig, the authority’s attitude has not improved, but according to ERR.ee, the company has reached an alternative legal solution.
“The first time they were not satisfied with the licensed business we have, but this time we found a different kind of legal solution with which we believe they will be more satisfied,” Villig explained to ERR.ee. “We’re currently waiting for final approval from them so we can relaunch.”
Although the new ride-hailing app was downloaded over 30,000 times in the first three days topping the trending list in Apple’s App Store in the UK, and it continued to be download even after operations were suspended, a “no drivers available” message was sent to users trying to schedule a ride.
Taxify, which claims to take less commission from drivers, making its fare prices more economical than Uber’s and other rivals’, was first launched in Estonia in 2013, and it has a presence in 19 European, Central American and African countries.
Chinese ride-hailing service Didi Chuxing said last month it was investing in Taxify and would help it grow.