Hailo taxi cab app to launch in New York Hailo, the London-based online taxi network that enables people to hail a cab from their smartphone, is to launch in New York next month with the backing of Manhattan’s largest technology venture capital firm.
Union Square Ventures, whose previous investments include Twitter and Tumblr, led a $30.6m funding round for Hailo alongside Japanese telecoms company KDDI, Moscow-based Phenomen Ventures and a personal investment from British entrepreneur Sir Richard Branson.
A year after launching, Hailo’s app has been downloaded by 10,600 of London’s 23,000 black cab drivers and 225,000 potential customers.
Hailo claims an even greater market share among cab drivers in Dublin, as well as in Toronto, Chicago and Boston.
The app has been free to use for those hailing cabs, who have generated more than $100m in fares from about a million journeys. Hailo makes its money by a 10 per cent commission on each fare booked.
Each city added to the network makes the app more useful to travellers. In New York users will pay $1.50 per e-hail, a reflection of the fact that cab fares in the city are about half the rate of London.
Hailo faces a bigger struggle to win hearts and minds when New York City’s transport department begins trialling app-based taxi hailing in Manhattan next month, pitching Hailo against US-based rivals such as Uber and Flywheel.
To support its US expansion, Hailo has appointed Tom Barr, a former vice-president of global coffee at Starbucks, to be its US-based president and chief operating officer.
It has been in negotiations with US mobile phone carriers to back the app. Telecom groups believe e-hail services could convince customers to upgrade handsets to a smartphone.
Hailo has raised more than $50m, led by Atomico, the private equity fund created by the founders of Skype, Wellington Partners and Accel Partners, which backed Facebook, Groupon and Dropbox.
KDDI will help with Hailo’s launch plans for Tokyo this year. Hailo has appointed Kiyotaka Fujii, a former executive at Louis Vuitton Japan and SAP Japan, to lead expansion into the Asia-Pacific region.
Ron Zeghibe, Hailo’s chairman and co-founder, said: “Japan’s market alone is worth $25bn and Tokyo weighs in at twice the market value of either London or New York. We will become Japan’s first end-to-end mobile taxi app.”
Mr Zeghibe said the calibre of investors “spoke volumes” about what the company had achieved in its first 12 months and what the founders and backers believe is possible in terms of international expansion.
source:
http://www.ft.com/cms/s/0/bf649392-6ed6 ... z2K0zRKvuz
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