EasyTaxi runs out of gas in Hong Kong, Indonesia, and India

Uber might be the world’s most talked about transportation network company, but in terms of market reach, Easy Taxi comes in at a close second. After Berlin-based startup factory Rocket Internet took the Brazilian founding team under its wing in 2012, the app made its way through Latin America, Asia, and parts of the US.

But Easy Taxi has hit some speed bumps causing it to bow out of three Asian markets – Hong Kong, Indonesia, and India. Rocket Internet confirmed these developments with Tech in Asia last night and provided the following statement:

Easy Taxi confirms that it is scaling down operations in Hong Kong and Indonesia in order to focus on other core markets. The app will continue operational in these countries as long as service levels are acceptable, and we are providing any necessary support for our local partners. India was not yet fully operational and we have simply decided not to continue pursuing the full launch.
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According to a source close to the matter, traction “scaling down” means that these operations will no longer be staffed, while in India, the company is declining to follow through on a country-wide launch.

Easy Taxi went live in Hong Kong in October 2013, while Mumbai and Jakarta followed in May. According to our source, traction was strong in Hong Kong and Indonesia, but prospects for return on investments were low given operational costs and competition. In India, meanwhile, Easy Taxi’s delayed receipt of a particular license that would grant it permission to partner with semi-public taxis caused it to lag behind Ola, Meru, TaxiForSure, and other domestic players.

Transportation network companies face heated competition in all parts of the world, with investors throwing giant sums of money behind their preferred racehorse. In Easy Taxi’s case, as a global-facing venture, it’s relatively underfunded. To date, the company has raised a total of US$77 million for the world, with its most recent US$40 million roundarriving last July. That’s ammunition against GrabTaxi’s US$330 million just for Southeast Asia, and Uber’s $2 billion-some odd warchest.

Despite these departures, Easy Taxi remains alive in several other Asian markets. If you reside in Vietnam, Malaysia, Singapore, Taiwan, Thailand, the Philippines, or South Korea, you can still book a cab through its app.

Editing by Paul Bischoff, top image via Greg O’Beirne