FREENOW BREAKS EVEN: Taxi focus drives growth across Europe
FREENOW, the multi-mobility platform centred around taxi services, has reached a significant milestone by achieving financial break-even.
This success comes as the company shifts its strategic focus to its core taxi business, resulting in a 13% year-on-year revenue increase by August 2024. CEO Thomas Zimmermann announced the achievement at the Bits & Pretzels 2024 event in Munich.
The app, operational in nine European countries, including the UK, France, and Germany, has bolstered its urban mobility services by focusing on reliability and safety in the taxi sector. FREENOW also continues to offer other transport options like e-bikes, e-scooters, and car-sharing, ensuring it remains a versatile choice in the crowded mobility market.
FREENOW's emphasis on taxis aims to cement its leadership in the sector across more than 150 European cities. By partnering with over 150,000 drivers and collaborating closely with local taxi operators, the company maintains strong ties with the communities it serves, supporting local economies and enhancing urban transport options.
Germany, one of FREENOW's key markets, has seen notable growth in demand for taxis, particularly through the introduction of fixed-price fares in Munich and Berlin. In Berlin alone, taxi rides facilitated by FREENOW have increased by over 50% year-on-year. With over 20,000 taxis now available across Germany, and driver numbers up by 10%, the platform continues to expand its reach into cities such as Nuremberg, Freiburg, and Heidelberg.
In other core markets like Ireland, Spain, the UK, and Greece, FREENOW has maintained its position as the top taxi app. The platform's growth has included expanding fleets, increasing driver availability, and launching new services. In London, 70% of rides booked through FREENOW now use zero-emission capable vehicles, reflecting the platform's commitment to supporting the electric transition of the city's iconic black cabs.
Further south, FREENOW has expanded to new Spanish cities and introduced fixed-price options in Madrid and Barcelona. In Greece, the company is also targeting growth in the tourism sector, expanding to Crete in addition to its presence in Athens and Thessaloniki.
With over 15 years of history in the taxi industry, FREENOW is well-placed to drive digital transformation within the sector. The company’s relationships with regulators and unions, coupled with a strategic focus on technology, position it to lead this evolution. With around 60% of ride-hailing still happening offline across Europe, FREENOW sees significant potential for growth as it looks to modernise the taxi industry and harness opportunities in both the online and traditional markets.
Thomas Zimmermann, CEO of FREENOW, said: “We are convinced that taxis are vital to every city’s mobility ecosystem. Our commitment to working with local taxi drivers and operators is the right approach for sustainable growth and success on both sides. Achieving break-even is a first substantial step and proves the efficacy of our taxi-first strategy. We are dedicated to our vision, prioritising growth and sustained profitability in Europe.
“Our near-term strategy for FREENOW is to strengthen our position as the go-to taxi app in our leading markets, while aiming to achieve this status in all our operating regions and expand into more European cities. As a taxi-first business, we will also continue the modernisation of the taxi sector, by building partnerships with offline dispatchers and offering our online solutions to digitalise their business. The offline taxi market is huge and FREENOW, with its historic taxi background, is well positioned to capture its still untapped potential.”
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