New app offers cab firms response to Uber, GrabTaxi

Another ride-booking app is coming to town. But instead of going head-on with taxi companies, London and New York-based Karhoo wants to work with cab operators to level the playing field, reported The Straits Times.

Started by British entrepreneur Daniel Ishag, Karhoo has been in talks with most of the taxi companies here to create a journey aggregator commuters can tap into. Karhoo's app allows commuters to pick a cab or a private-hire car across companies, based on criteria such as cost, time of arrival and type of vehicle.

ComfortDelGro Corp, the largest taxi operator with nearly 60 percent of the 28,500 cab here, told The Straits Times yesterday that it was "in talks with Karhoo for a possible tie-up", but added that discussions were still "in early stages". TransCab, the second-largest taxi firm here, said it was also exploring joining hands with Karhoo. Prime Taxi, the smallest player here, is in talks with Karhoo, too.

But Premier Taxi managing director Lim Chong Boo said Karhoo has to do more to convince players to go on board. "I don't think we need another app per se. Unless they come up with a novel plan, it's just going to be another Grab or Uber," he said. SMRT, however, is not in talks with Karhoo, having tied up with London-based app provider Hailo last year.

Karhoo says it has already signed up 200,000 vehicles in London, New York and Singapore. Mr. Ishag said that by working with taxi companies, Karhoo will avoid the regulatory pitfalls faced by groups such as Uber. "We're able to work in markets where the peer-to-peer networks aren't allowed to work simply because we empowered the incumbents," he said.