HAILO: How the first black taxi app made it big at launch and changed an industry
In the early 2010s, the taxi industry found itself at a crossroads, poised for disruption by the advent of mobile commerce and app-based booking systems. In London, Hailo emerged as one of the most significant players in this transformation, bridging the gap between cutting-edge technology and the historic traditions of the city’s black cab trade.
Launched on All Saints’ Day in 2011, Hailo promised a new level of convenience for passengers and opportunities for drivers. By allowing users to hail a licensed black cab through their smartphones, it eliminated the need for street hailing in unpredictable weather or enduring long waits on the phone to book a taxi.
Crucially, the app was a breakthrough at a time when Uber was still limited to black car services in a handful of US cities, and the concept of mobile app-based ride-hailing was in its infancy.
The Origins of Hailo
Hailo was co-founded by three tech entrepreneurs—Jay Bregman, Caspar Woolley, and Ron Zeghibe—and three London taxi drivers, including Russ Hall, Gary Jackson and Terry Runham. This unique partnership ensured that the platform was grounded in both technological innovation and an understanding of the needs and challenges faced by black cab drivers.
From the outset, Hailo sought to complement the heritage of London’s iconic black cabs. With roots dating back to 1639, the trade is steeped in history, and its drivers undergo one of the most rigorous training programmes in the world, famously known as “The Knowledge”. This gruelling process, which can take up to four years, requires drivers to memorise the layout of over 25,000 streets and thousands of landmarks. Hailo’s pitch to drivers was clear: the app would modernise their business without undermining their profession’s traditions and standards.
The Launch and Immediate Impact
Reminiscing about its launch, Chris McLellan, an experienced marketer who worked closely on the Hailo project, shared insight into how Hailo were able to break through to taxi drivers at the time.
According to McLellan, Hailo’s debut was marked by a high-profile campaign designed to maximise visibility among both drivers and passengers. Over 50 branded black cabs formed a convoy across London, making stops at landmarks like Buckingham Palace to provide photo opportunities for the media. Street teams distributed free ride vouchers at major commuter hubs, while driver ambassadors actively recruited new cabbies at ranks and cafes.
The campaign’s strategy was clear: prioritise the supply side of the marketplace. By ensuring a critical mass of drivers was on the platform, Hailo guaranteed passengers a reliable service from day one. This approach paid off handsomely. Within weeks, Hailo had attracted hundreds of new drivers and thousands of passengers who registered their payment details within the app. Media coverage was extensive, generating millions of impressions and cementing Hailo’s reputation as a trailblazer in mobile ride-hailing.
Expanding Beyond London
Following its success in London, Hailo embarked on an ambitious global expansion. Over the next few years, the app launched in major cities across four continents, including New York, Boston, Toronto, and Singapore. Each launch followed the same template established in London: high-profile media campaigns, driver-focused outreach, and promotions designed to incentivise early adoption by passengers.
By 2014, Hailo had facilitated millions of rides, boasted a driver network exceeding 35,000, and served hundreds of thousands of passengers globally. However, the rapidly evolving ride-hailing market was beginning to pose significant challenges.
The Challenges of a Disrupted Market
McLellan remembered how Hailo’s early advantage as a pioneer of licensed ride-hailing was soon eroded by the rise of less regulated services at the time. Uber, which expanded aggressively with its UberX service, bypassed many of the long standing constraints enabling it to undercut traditional metered fares.
For Hailo, the competition was fierce. The company’s focus on working with licensed drivers meant it could not match the scale or pricing of competitors like Uber. Venture capital played a decisive role in the battle for market dominance. While Hailo raised significant funding, it was dwarfed by Uber’s unprecedented capital reserves, which allowed the latter to operate at a loss for years in order to gain market share.
By 2016, the strain had become evident. Hailo ceased operations in North America, unable to compete in a market dominated by Uber and Lyft. Shortly after, Hailo merged with Daimler-owned MyTaxi, marking the end of its journey as an independent company. MyTaxi has since become FREENOW in its current form.
Hailo’s Legacy
Despite its decline, Hailo’s impact on the taxi industry remains hugely significant. It was one of the first platforms to prove that app-based ride-hailing could succeed in a heavily regulated environment. For London’s black cab trade, Hailo offered a glimpse of how traditional professions could embrace technology without sacrificing their identity.
Hailo’s rise and fall is a case study in innovation, disruption, and adaptation. While it ultimately could not withstand the seismic shifts in the fast evolving ride-hailing market, it played a pivotal role in reshaping the industry, leaving an indelible mark on London’s black cab trade and beyond.
