Innovative cab-hailing platform TaxiGo eyes expansion in Taiwan

2018/04/02

Taiwan cab-hailing platform TaxiGo stands out as the first platform of its kind in the world to use a chatbot to facilitate service delivery. This innovative approach allows users to summon a taxi using third-party messaging applications such as Line or Facebook Messenger.
 
 Chatbots are computer programs that conduct conversations using auditory or text communications. At present, they are largely used in the field of customer services.
 
 TaxiGo commenced operations in July 2017 in Taipei and New Taipei cities. Within six months, the five-person team saw the business grow to encompass 120,000 and 10,000 users on Line and Facebook, respectively, as well as more than 5,000 participating cabbies. By the middle of January this year, the platform had facilitated rides totaling over 500,000 kilometers.
 
 TaxiGo was established by CEO Kevin Chen and chief technology officer Huang Pei-an. Chen, 29, was born in Hong Kong. After graduating from Michigan State University in the U.S. with a bachelor’s degree in computer engineering, he found work as a software engineer at California-based Qualcomm Inc.
 
 Around that time, Chen got to know Huang, who was employed by New Taipei-headquartered HTC Corp. The two often talked about starting a business. Later, Chen left Qualcomm and enrolled at Tsinghua University in Beijing. In 2015, he completed a master’s degree in business administration and set about launching his own venture. He and Huang teamed up and joined Taipei-based startup accelerator AppWorks.
 
 Chen and Huang’s first attempt, a restaurant research platform using photos from Facebook and Instagram, ended in failure. In late 2016, Chen heard that U.S.-based company Uber was suspending its ride-sharing service in Taiwan and he got the idea for a new cab-hailing application. As he pondered the business model, the idea of a chatbot system came to him.
 
 Given their experience, the technology side of the business proved no obstacle. Coding has been long a part of their daily routines. The difficulty was finding cab drivers willing to participate. While Huang focused on the tech, Chen worked to build business relationships. He made numerous calls and visits to taxi companies to seek their cooperation.
 
“Some taxi firms considered me a fraud, some talked to me in Holo, which I don’t understand, and some thought we were trying to sell system integration products,” Chen recalled. Holo, also called Taiwanese, is the language of Taiwan’s largest ethnic group. A breakthrough came when Chen met with a newer generation of cab firms more willing to embrace innovative ideas. Within about a month, he had managed to recruit 2,000 cab drivers and launch the platform.
 
 The percentage of people who hail a cab in the street or call taxi companies is falling in Taiwan. So too are downloads of taxi-hailing apps. The main reasons for the adoption of TaxiGo are its low average wait time for a cab at six minutes and real-time data updates on traveler expenditures. “Our platform keeps a record of all passengers’ trips. Riders can also rate drivers. These elements can have a positive impact on industry development,” Chen said.
 
 One of TaxiGo’s objectives is to popularize mobile payments. Many cab drivers do not accept credit cards as it costs them money to install the card machines. TaxiGo allows users to settle their fares through Line Pay, which offers easy payment services in partnership with global credit card brands. This helps cabbies save on machine installation costs and reduce their need to carry change.
 
 Hsu Zhong-hui, who was among the first cabbies to join TaxiGo, said many drivers turned to the platform because of electronic payments. “There is no need to install a machine and we can get reimbursed once a week. It’s very convenient,” he said.
 
 Compared to traditional transportation firms, TaxiGo offers great flexibility in implementing new ideas. “Taxi companies usually outsource their operating systems, so it’s difficult for them to create and enact new marketing strategies. But our engineers and marketing staff work side by side,” Chen said. The company also conducted consumer surveys and discovered that passengers are most concerned about the cleanliness of cars, so it has teamed up with Sharp Corp. to install air purifiers in hundreds of participating cabs.
 
 TaxiGo has obtained funding in seed rounds from Leopard Mobile and Triumph Motor Service, both based in Taipei, and is preparing to enter Pre-A round financing. Leopard Mobile Chairman David Wu decided to invest in Chen and Huang’s company after meeting them just twice. “I typically make investments based on my gut feelings,” he said with a smile. “It wasn’t easy for TaxiGo to compete with Taiwan Taxi Co., the largest taxi company on the island.”
 
Recently, Didi Chuxing, the most popular taxi-booking platform in mainland China, also entered the Taiwan market. As a homegrown business, TaxiGo is gearing up for the challenge. “We need to move faster!” Chen said.
 
 This year, TaxiGo plans to expand its services to all six special municipalities in northern, central and southern Taiwan. It is projected that by year-end, the company will have 300,000 users and 10,000 cabbies. “The fact that Taiwan Taxi Co. can become a listed company and mainland China’s Didi Chuxing has made inroads into Taiwan indicates the market is big. We’ll have to work hard if we want to win out,” Chen said.

Source: Taiwan Today (https://taiwantoday.tw/news.php?unit=11&post=131948)