Following India’s curb on taxi services, Easy Taxi drops India expansion plans

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Easy Taxi, the Rocket Internet-backed taxi service said it is scaling down its operations in Hong Kong and Indonesia, and will abort its establishment efforts in India in order to focus on other core markets, TechinAsia reported.

Easy Taxi started its operations in Brazil and Colombia back in 2011. Since then it has expanded its services to 170 cities in 33 countries across Latin America, Asia, the Middle East and Africa. It kicked off in Hong Kong in October 2013, while India and Indonesia welcomed the service in May.

While the company set its foot right in Hong Kong and Indonesia, Easy Taxi had to face a huge delay in commencing its services in India. The cause being issuance of a professional license which is mandatory in India for a taxi driver in order to run a paid service.

Easy Taxi said in a statement to TechinAsia,

Easy Taxi confirms that it is scaling down operations in Hong Kong and Indonesia in order to focus on other core markets. The app will continue [to be] operational in these countries as long as service levels are acceptable, and we are providing any necessary support for our local partners. “India was not yet fully operational and we have simply decided not to continue pursuing the full launch.

For 2015, Rocket Internet said that Easy Taxi is looking to increase the number of cities it operates in and work more towards customer service. In July it picked up $40 million of Series D funding, bringing its total to $77 million, that certainly gives you a dizziness when you know its close rival Uber has a staggering $41 billion worth.

On the other hand, rival companies have been receiving heavy rounds of funding including SoftBank’s $210 million investment in Ola and $250 million in GrabTaxi. Uber, though being the newest entrant in that rival list, has been busy fending off legal battles in numerous cities across the globe.

In fact, one of the major reasons for Easy Taxi’s dropping plans for India could be the recent Government curb on app based taxi services following rape of a young woman by a Uber driver in India’s capital city, New Delhi.


Senior Writer