Despite only launching in London this week, Estonian on-demand ride-sharing service Taxify halted operations in response to an urgent investigation launched by the city’s transport authority.
The Uber challenger said the suspension was temporary and it wants “to clarify its legal position” with Transport for London, it said in an emailed statement.
On Friday, the app informed London users that no drivers were available.
“TfL has instructed Taxify to stop accepting bookings and it has done so,” said a statement from the authority.
“The law requires private-hire bookings to be taken by licensed private-hire operators at a licensed premises, with appropriate record keeping. Taxify is not a licensed private hire operator and is not licensed to accept private-hire bookings in London.”
Taxify launched in London on Tuesday and operates in 26 cities in Europe, the Middle East and South Africa.
It charges an average 15 per cent commission for drivers, according to its website. “Our pricing system is the same as our competitors,” one help note for drivers says.
Didi Chuxing announced in August that it is backing Taxify with a financial investment and support on technology developments.
Bloomberg
