Food & bev. services News South Africa

Taxify and OrderIn: friends with benefits

Ride-hailing company Taxify has partnered up with food delivery business OrderIn, and are set to compete with the likes of Mr D and UberEats.
Taxify and OrderIn: friends with benefits

Locally, Uber and Taxify already compete for fare-paying, phone-wielding passengers. Uber grew its presence in the South African market first and has grown so large that in some cities the platform is no longer accepting new cars to be registered. Taxify, an Estonian based company, now operates in approximately 30 countries globally while Uber boasts a presence in about 75.

Originally dubbed UberFresh, Uber's food delivery service was housed within the Uber app and mobilised drivers on their platform to not only carry people but food too. They very quickly learnt that customers were looking for more when buying food - they wanted pictures! So, in 2016, Uber launched its standalone UberEats app and set out on a journey of discovery in the space and developed what is now a well-oiled machine. With all their trial and error, Uber paved the way for what is known as the second mover advantage.

The battle for market share

For Taxify, coming in and offering a similar service is easier. The market has been proven and by doing just one more thing right than the competition, they might just steal market share. For OrderIn, the company already has an existing base of restaurants and customers and through partnering with Taxify will gain access to more customers and a fleet of drivers. This move is set to increase the already tense battle for market share between Taxify and Uber.

The Taxify and OrderIn partnership could have synergistic benefits such as a decreasing operating cost or offer a better all-around service. The latter is important - many customers will use both of Uber's services to remain within the ecosystem. Passengers pay more just because Uber has their loyalty and trust on some level. With Taxify also entering the food space, they're playing on level ground again.

The two entities will complement each-other by promoting each other through social media, offering discount codes and exclusive deals to regular customers. These methods are expected to increase the market presence of both brands and ultimately their overall revenue. Ultimately, this may result in benefits for the customer. UberEats has already dropped their delivery fee and consumers could benefit from the increased competition.

This article first appeared in Digest.

About Ammaar Sukhadia

Ammaar Sukhadia is a content contributor at Digest, a free email newsletter delivered on weekday mornings explaining financial newsworthy topics and events.
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