Auckland based taxi app Zoomy has secured major funding in order to rival Uber in New Zealand and Australia after investors purchased 50 per cent of the company for an undisclosed amount.
Australasian investment company Windhaven have taken a large stake in the mobile taxi firm after it was reported in February that they were looking for very large investment in order for Zoomy to compete with Uber.
Zoomy provides a very similar service to that of Uber, in which its smartphone app offers GPS tracing, fast taxi booking and a mobile payment service.
Since their launch in New Zealand in April 2014, Uber have come under fire from the authorities. In January 2015, the police accused the company of being in violation of the Land Transport Act, as they felt that Uber could not legally be classed as a ‘private hire service.’ Two Uber drivers are facing legal action and fines of up to $10,000 if found guilty.
Zoomy’s recent increase in revenue will allow them to compete with Uber and offer taxi drivers more options to choose from when considering employment.
‘‘The arrival of Uber has left many of them flat-footed and worried sick about the technological challenges. There is a battle for the customer, Taxis are going to work with whoever will deliver the most customers ’’ said James Fisk, co-founder of Zoomy.
Zoomy is currently available in Auckland, Wellington and Christchurch, with plans for an expansion into Sydney coming into force later this year.
‘‘A raft of new entries, combined with possible legislative changes and pricing options on the horizon and the introduction of new, exciting technology, means the future of the taxi industry in Australia and New Zealand is changing, and changing quickly,’’ said Ben Unger, CEO of Windhaven.
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