Competing against Uber: How cities have built their own taxi-hailing apps under differing models
- Perry Richardson
- 2 days ago
- 3 min read
As major ride-hailing firms like Uber continue to dominate global transport markets, a growing number of cities and local taxi operators are responding with their own digital booking platforms. These homegrown apps are aimed at supporting licensed drivers and offering an alternative to the commission-heavy model employed by multinational tech companies.
Over the past decade, several municipalities and independent taxi groups have launched their own ride-hailing services. These apps are often framed as tools to level the playing field, giving licensed drivers digital visibility while retaining more control over pricing, standards, and service quality.
One of the most talked-about cases came from Austin, Texas. In 2016, both Uber and Lyft pulled out of the city following disputes over local regulations requiring fingerprint background checks for drivers. In their absence, local developers and industry stakeholders quickly launched RideAustin, a non-profit ride-hailing app designed to support local drivers and meet city rules. The platform initially gained strong public backing, with thousands of rides per day, but saw usage collapse once the larger firms re-entered the market. Despite its innovative approach and fairer fee structure, RideAustin was eventually wound down, exposing the difficulty of competing with global firms on scale alone.
In Spain, Barcelona’s licensed taxi operators worked together to support Taxi Ecològic, one of several local ride-hailing apps that link users to traditional taxis. The app has seen modest but steady growth, partly due to wider support for local services in the city and a tighter regulatory framework that restricts competition from non-taxi vehicles. Madrid has followed a similar approach, with apps such as FREENOW — previously mytaxi — offering booking services for both taxis and private hire vehicles. Though not municipally run, it’s been embraced by many traditional taxi firms seeking digital presence.
France has taken a more centralised route. The national government launched Le.Taxi, a public platform designed to bring traditional taxi services into the digital booking space. Unlike private apps, Le.Taxi is open to all licensed drivers, and aims to give customers the ability to book taxis directly via approved third-party apps. Progress has been slow, with few consumers aware of its availability, and many drivers preferring other platforms that offer stronger brand recognition.
In the UK, local authorities and taxi groups have experimented with their own digital platforms, but results have been mixed. In London several driver led apps make up a congested app market. Firms, in the most part, partner with white-label tech providers to launch apps that mirror the basic offering by Uber. Despite this, uptake remains limited with the ultimate struggle being recruiting and retaining customers from wider better-known apps.
Funding, user experience, and public awareness continue to pose major challenges. Competing with global firms means matching not just the technical functionality, but also the seamless payment systems, constant updates, and aggressive marketing strategies. For smaller cities or independently run apps, this presents a significant disadvantage.
There is also the issue of scale. Many local apps only operate in one city or region, which makes them less useful for customers who travel frequently or want a single solution nationwide. Without national or multi-regional coordination, these apps struggle to compete with platforms that offer consistent service across borders.
However, interest in local alternatives continues. In response to concerns about worker rights, high commission fees and the impact of algorithm-based pricing, some cities are actively exploring new models looking for that breakthrough unique selling point.
