Easy taxi will bow out of the Kenyan market following investment rivalry with its competitor, Uber taxi. The two onlinetaxi hailing companies share a common investor, Goldman Sachs, and it has emerged that the American Investment company has decided to direct its capital towards Uber Taxi.
Uber has a better grip on the African market and seems to be the most profitable of the two ventures hence the investor’s inclination towards it.
The company is expected to wind up its operations in Kenya and Africa by the end of this month. Plans are already in place to have its taxi drivers and employees absorbed by Little Cabs, a new entrant into the market. Re-branding of the cabs will be dispensed with by June 1st. Critical services such as emails and registration have been disabled, and all emails will be deactivated in the next couple of days.
Easy taxi made a grand entry into the Kenyan market 2 years ago, and had so far brought 20 employees and over 2000 cab drivers on board. The company had already established a presence in Nakuru, Mombasa and Nairobi. Uber came in last year, but its previous success in other parts of the world has seen it out-compete Easy taxi, forcing the latter to make a strategic decision to quit the continent.
The company has also decided to cut its losses in the Asian market, where it is also at the centre of an intense business rivalry with Uber. The online cab operator instead channel its efforts towards strengthening its business grasp on Latin America, where it seems to be doing well. Previously, the company operated in 420 cities across Asia, Africa and middle East.
Easy taxi began its operations in Brazil, with funding from African Internet Group (AIG). Goldman Sachs injected 24.6 billion into Easy Taxi at the beginning of this and year. The investment firm also made available 190 billion to Uber. Goldman Sachs is a leading investor in AIG, which explains the shift in allegiance and subsequent pull out by Easy taxi.
AIG will probably not be affected by the exit of Easy Taxi. The e-commerce giant also owns online shopping websites, including Jumia as well as hotel booking site, Jovago. The investment company recently got backing from Orange Group, which acquired an 8.6 billion equity of its investments.