In September, a new smartphone app called Cabbi will launch in the city of Johannesburg as an alternative to the Uber service.
In fact, it appears that these two services are nearly identical as users will register online, call the vehicles via their cellphones and rate their experience thereafter.
The drivers’ conditions are also quite similar as they require a valid driver’s licence together with a public driving permit. The vehicles also have to be newer than 2013 and in good condition; another similarity between the two.
So, the real question is… What makes these two business models different?
Cabbi is a South African company whereas Uber is an international group operating in 633 cities globally, IOL reports.
It also seems to allow a broader range of cars while Uber does not allow hatchbacks.
These Cabbi drivers will also earn a bigger portion of each fare, with 90 percent of earnings going to the driver/owner and only 10 percent commission going back to the company. Uber currently works on a 75/25 percent split, IOL concludes.