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Rumour: Hungarian, Estonian Companies To Compete For Uber’s Market Share In Hungary

Tamás Székely 2016.07.27.

Both a Hungarian and an Estonian company want to fill the gap left by ride-sharing company Uber when it pulled out of the country, daily Magyar Idők reported. The manner in which the services are offered is no novelty in Hungary, the paper said.

The Hungarian company – its name has not been revealed yet – was earlier a subcontractor for Uber in Budapest, and it wants to launch its mobile application in the coming days. It said it would circumvent the strict rules on providing taxi services in Hungary by renting vehicles to passengers, together with a chauffeur without revealing the name of the company. The service will start with a small number of drivers and offer passenger rates higher than Uber’s but lower than the capital’s yellow cabs.

At the same time Uber’s Estonian competitor Taxify also said it would launch its service in Hungary on August 1. The Estonian company has said it will comply with all local regulations on taxis. Founded in Tallinn in 2013, Taxify develops and operates a mobile application (photo above), which helps people request a taxi or private driver from their smartphone. By September 6, 2015, the service of Taxify was available in 10 countries and 13 cities around Europe.

Uber suspended its service in Budapest on July 24. The company’s operative director for business in Hungary said regulatory changes made it impossible for Uber to operate locally, complaining of a lack of will on the part of policy makers to address issues. About 40% of Uber rides in the capital were ordered by foreigners.

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