Ride-Hailing Competition Gets Stiff in Iran

EghtesadOnline: Iran’s major ride-hailing companies have started expanding their range of services, each offering something “genuine” in the unending hunt for a bigger share of the pie.

News ID: ۷۷۷۲۸۸

30 June 2017

Currently, four applications are offering ride-hailing services in Tehran, the oldest is Snapp (previously operating under the brand name TaxiYab) and the latest newcomer is Ajancy established by private taxi agencies.

Sharing an Uber-like business plan and somewhat the similar pricing system, each application has its own perks.

Snapp

Launched in mid-2015, Snapp is co-owned by Germany’s Rocket Internet and South African telecommunication company MTN through its holding company, Iran Internet Group, according to Financial Tribune.

With the technological and financial backing of MTN, Snapp is a player which apparently is here to stay. However, it seems that its reliance on the two multinational businesses has made the company overconfident.

While Snapp’s rivals are trying to promote their business through offering “genuine” services, Snapp has not made a move yet.

It seems the company believes that instead of offering a wider range of options, simplicity is the key to successes. However, the company has adopted a greedy approach to the market and is trying to claim some share of other businesses not related to ride-hailing.

Last week Snapp launched a new service dubbed “Snapp Box” which is set to compete with other delivery applications, like Hamloo and Alopeyk.

Tap30

One of the other major ride-hailing services operating in the capital is Tap30. The business has released a new version of its application trying to add a bit of class to its services.

Through the upgraded app, users can choose to ride with Hyundai and Toyota cars instead of the vehicles normally used for taxi services. The service is styled as “Tap30 Pro.”

Furthermore, Tap30 has launched a women-only service, named “Tap30 Prime”, which would have sent it ahead of the pack had it not been for the fact that its rival, Carpino, launched the same service earlier.

So far the two services — Tap30 Pro and Tap30 Prime — are not fully operational and although the options are added to the application, when users try to process a request, there is no car available.

Carpino

Launched by Tehran Taxi Organization, Carpino is the business which is taking the game to a new level. In addition to conventional services, Carpino currently offers women-only, vans and “luxury” rides.

Unlike Tap30 Prime, Carpino’s women-only service is operational. The business is making use of female taxi drivers with the Tehran Taxi Organization. The number of female drivers with the organization has grown exponentially in recent years.

Furthermore, through its “luxury” service, users can ride with Toyota Hybrid taxis which in addition to being somewhat classier than other services, boasts of being green. The service is 70% more expensive than Carpino’s normal rides.

Ajancy

Established by private taxi agencies, having a hard time catching up with rivals, so far Ajancy has not been able to get a foothold in the market.

Ajancy’s application has several technical flaws and half the time does not work properly.

The prices are the same as the other three and the business has not even been able to make itself known to the market.

Like other online business, the ride-hailing sector will likely see several other companies entering the market with the aim of making easy money. But without the required professional infrastructure they are doomed.