Business

After 5 years, Cabify to shut down operations in Brazil in June due to profitability problems

The company faced a tough competition in the country, and said the COVID-19 pandemic caused losses

Photo: Cabify/Website
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The ride-hailing app Cabify announced on Friday that it will stop operating in Brazil from June 14th. 

The company faced strong competition for the Brazilian market with the ride-sharing giants Uber and 99, from the Chinese Didi Chuxing. Cabify sources said the company has a strong commitment to the pursuit of profitability and that, as a result of a constant analysis process in this market, it has taken the decision to end the service as of June 14. 

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According to Cabify, the Brazilian market is still very affected by the country’s serious health situation and the local socio-economic crisis caused by COVID-19, which “hindered the creation of value and led the company to stop its operation in Brazil.”

Founded in 2011 in Madrid, Cabify expanded, a few months later, to Latin America and is currently present in Argentina, Chile, Colombia, Ecuador, Spain, Mexico, Peru and Uruguay.  In Brazil, Cabify started operating in 2016. One year later, the company acquired Easy Taxi, and incorporated the taxi service in the company’s app.

Unlike Brazil, all cities in Latin America and Spain where the company operates show good rates of recovery compared to the level of activity prior to the pandemic and, on average, Cabify‘s global travel demand has recovered by 75% by the end of 2020. In some markets, 100% of demand was reactivated during the first months of 2021, the company said.

Cabify also stated that “it will remain dedicated to promoting in every market the recovery of an increasingly efficient and sustainable mobility, providing through technology a multimodal, safe and quality transport option.”

Cabify also said that all partner drivers, passengers and companies that use their services in the country have been duly informed, and states that it will continue to be attentive to future mobility needs and opportunities in this market.

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