Cabify, the Spanish ride-hailing app, reported losses value €4.9m in 2022 within the Spanish market, compared to €346k the earlier yr.
The Madrid-based firm reported revenues of €199.5m in 2022 in Spain — 27.5% greater than in 2021.
The expansion in Cabify’s losses and revenues comes because the startup boosts its funding within the Spanish market.
The scaleup — which operates in Spain and Latin America — had reportedly been planning to drift on the inventory market this yr. However the firm stated in a press release that it’s investing in measures to incentivise demand, together with in advertising and marketing and instruments to enhance the provide of automobiles.
This month Cabify is going through a collection of strikes by the “overwhelming majority” of its unionised Madrid-based drivers employed by its subsidiary Vecttor, in response to the Sindicato Libre de Transporte (SLT) union, which claims workers should not being paid for working in a single day or longer hours. They’re additionally requesting extra annual go away and that drivers are employed instantly by Cabify reasonably than Vecttor, through which Cabify owns a majority stake.
To make use of a privately owned car for ride-hailing in Spain, the car should have a VTC (Vehículos de Turismo con Conductor) licence. The overwhelming majority of those licences are held by VTC firms that personal fleets of automobiles and make use of riders to drive these automobiles, resembling Vecttor. Historically, ride-hailing corporations like Uber and Cabify have partnered with these firms to run companies in Spanish cities.
