Cabify
Cabify is a Madrid-headquartered mobility technology company founded in 2011 by Spanish entrepreneur Juan de Antonio, specializing in app-based ride-hailing services that connect passengers and businesses with licensed drivers for urban transportation.[1][2][3] The platform emphasizes safe, efficient rides through vetted professional drivers and vehicles, distinguishing itself from peer-to-peer models by prioritizing licensed operators and corporate-focused tools for fleet management, real-time tracking, and cost controls.[4][5] Operating in over 40 cities across six countries—Spain, Chile, Argentina, Peru, Colombia, and Uruguay—Cabify has expanded primarily in Iberoamerica since its inception, adapting to local regulations while promoting urban mobility solutions that include passenger transport and light goods delivery.[1][6] The company has secured substantial venture funding, exceeding $400 million from investors including Rakuten Capital and Seaya Ventures, achieving a valuation around $1.4 billion and enabling growth amid competitive pressures from rivals like Uber.[7][8] Defining its trajectory are regulatory challenges, such as temporary service suspensions in Barcelona due to Catalan licensing disputes and fines in Colombia over operational compliance, which highlight tensions between ride-hailing innovation and traditional taxi protections in key markets.[9][10] Despite such hurdles, Cabify has pursued sustainability initiatives, including partnerships for electric vehicle adoption, positioning itself as a contributor to greener city transport ecosystems.[11]History
Founding and Early Operations in Spain
Cabify was founded in 2011 in Madrid, Spain, by Juan de Antonio Rubio, a telecommunications engineer and entrepreneur seeking to improve urban mobility through technology-enabled vehicle-for-hire services.[1][3] The company initially launched under the name "Executive," establishing its headquarters and first operations in the Spanish capital, where it connected passengers with licensed VTC (vehículo de transporte con conductor) drivers via a mobile app.[12] This model emphasized fixed pricing, professional drivers, and higher service standards compared to traditional taxis, addressing perceived shortcomings in reliability and customer experience in Madrid's transport sector.[13] Early operations faced a challenging regulatory environment in Spain, including government scrutiny and restrictions on VTC licenses that limited domestic scalability.[14] Despite these hurdles, Cabify grew rapidly in its home market; by February 2012, it had acquired 20,000 users and employed over 11 staff members in Madrid, supported by seed funding from U.S. and European angel investors.[12][13] The platform's initial focus remained on premium ride options, such as executive cars, to differentiate from unlicensed or informal alternatives prevalent at the time.[15] In 2012, Cabify began expanding within Spain beyond Madrid, rolling out services to additional cities amid ongoing competition with established taxi unions and regulatory pushback that de Antonio later described as aggressive toward innovative entrants.[16][17] This period laid the groundwork for the company's emphasis on driver vetting, real-time tracking, and customer safety features, which became core to its operations despite the domestic constraints prompting early international pivots.[14]Initial Funding and Investments
Cabify secured its initial funding through a $4 million seed round in September 2012, led by investors including the Belgian venture fund Emerge, Black Vine, and angel investors sourced via AngelList.[18][12] This capital supported early operations following the company's founding in 2011 by Juan de Antonio in Madrid, Spain, enabling initial scaling in the Spanish market amid regulatory challenges for ride-hailing services.[18] In April 2014, Cabify raised $8 million in a Series A round, with participation from Seaya Ventures, a Madrid-based firm focused on early-stage tech investments, alongside returning investors.[18][19] The funding facilitated international expansion, particularly into Latin American markets like Mexico, where Cabify had launched services in late 2012.[18] By September 2014, the company closed an additional $4 million round, again led by Seaya Ventures and Black Vine, which further bolstered product development and market penetration in competitive regions.[20] These early investments totaled approximately $16 million and positioned Cabify as a viable alternative to global competitors, emphasizing licensed professional drivers and fixed pricing to differentiate from peer-to-peer models.[18]Expansion into Latin America
Cabify initiated its international growth by entering Latin American markets in 2012, launching operations in Mexico, Chile, and Peru just one year after its founding in Spain.[14] This early pivot was driven by stringent regulatory hurdles in the Spanish market, which limited domestic scaling and prompted the company to seek opportunities in regions with higher demand for ride-hailing services and fewer immediate barriers.[14] By focusing on professional drivers and fixed pricing models, Cabify differentiated itself from competitors like Uber, achieving rapid user adoption in these initial markets amid growing urbanization and smartphone penetration. In 2015, the company expanded to Colombia, beginning with corporate-focused services in Bogotá before broadening to cities like Cali in 2016 and Medellín. Subsequent entries included Argentina and Uruguay, with operations scaling through acquisitions such as Easy Taxi in 2018, which bolstered presence in multiple South American countries.[15] Brazil was another target, though operations there ceased in June 2021 due to competitive pressures and profitability challenges.[21] Funding rounds supported this growth, including $12 million from Rakuten in 2015 earmarked for Latin American development and nearly $100 million in 2017 to intensify competition against Uber across the region.[22][23] By 2023, Latin America accounted for the majority of Cabify's revenue, with the company committing $300 million in investments through 2024 to enhance fleet electrification and market penetration in core countries like Argentina, Chile, Colombia, Peru, and Uruguay.[24] A further $110 million raised that year targeted sustainable expansion, aiming for zero-emission rides across Latin American operations by 2030.[25] However, not all ventures succeeded; Mexico operations, launched in 2012, ended in October 2024 after persistent regulatory scrutiny, safety incidents, and stalled growth amid fierce rivalry.[26] These exits underscore the region's volatile regulatory landscape and intense competition, yet Cabify maintained over 12 million users in remaining Latin American markets by late 2022.[24]Recent Developments and Growth Initiatives
In 2024, Cabify reported a 30% increase in revenues alongside a 40.9% rise in gross profit to US$111.1 million, with turnover exceeding US$899 million, reflecting operational efficiencies amid competitive pressures in ride-hailing markets.[27] The company secured a €15 million financing facility from BBVA to support fleet electrification and expansion, targeting 100% zero-emission trips in Spain by 2025.[28] Additionally, Cabify raised US$16.4 million in venture debt funding in January 2024 to bolster its technological infrastructure and market penetration.[8] Cabify pursued geographic and service diversification, including a US$25 million investment to launch official passenger transport services at Santiago's Arturo Merino Benítez International Airport following a public tender win in May 2025, deploying 50 vans and four service counters.[29] In April 2024, the company introduced minute-by-minute electric moped rentals in Seville, Spain, via its app to enhance urban micromobility options.[30] A partnership with Polestar added 100 Polestar 2 electric vehicles to fleets in Barcelona and Madrid, with plans to scale to 1,400 EVs across Spain to accelerate decarbonization goals.[31] Sustainability emerged as a core growth pillar, with Cabify aligning operations to the UN's 2030 Agenda and committing to fleet-wide decarbonization by 2025 in Spain and 2030 in Latin America, emphasizing electric and low-emission vehicles for all platform trips.[32] However, challenges persisted, as evidenced by the company's exit from Mexico in October 2024 after 12 years, attributed to sustained growth difficulties in a saturated market.[26] These moves position Cabify toward potential IPO considerations while prioritizing scalable, low-carbon mobility in core European and Latin American operations.[27]Services and Business Model
Core Ride-Hailing Offerings
Cabify provides on-demand ride-hailing services through its mobile app, allowing passengers to request licensed VTC (Vehículo de Turismo con Conductor) vehicles driven by professional chauffeurs for point-to-point transportation. Users input their destination to receive an upfront fixed price, which accounts for distance and time but excludes dynamic surges based on demand or traffic.[33] The service operates in over 40 cities across Spain and Latin American countries including Mexico, Colombia, Peru, Chile, Argentina, Brazil, and Ecuador as of 2023.[34] Core vehicle options center on standard categories tailored to different needs, such as classic Cabify cars for routine urban travel, premium Plus vehicles with higher-end amenities for business or comfort, and Group rides accommodating up to six passengers in larger sedans or vans.[33] Specialized variants like Kids include vehicles equipped with Group 1-2-3 child seats for family use, though these build on the foundational VTC model.[33] Category availability and tariffs vary by city—for instance, Madrid offers distinct pricing for each type accessible via the app—but all adhere to requirements for modern, well-maintained vehicles and verified drivers with clean records.[34] Key operational features include real-time geolocation for matching riders to nearby drivers, ensuring average wait times under typical urban conditions, and integration of taxi options via ASAP for hybrid fixed-price bookings where permitted.[4] Safety protocols are embedded, featuring driver identity verification, a panic button for immediate assistance, and shareable live trip tracking with emergency contacts.[4] Payments occur post-ride digitally via linked cards, promoting cashless transactions and receipt generation within the app.[33] Unlike taximeter-based taxis, Cabify's VTC licensing prohibits dedicated taxi lane access but enables app-exclusive transparency and professional standards.[33]Supplementary Services
In addition to its core point-to-point ride-hailing operations, Cabify provides supplementary services focused on logistics, subscriptions, and tailored business mobility solutions. These offerings expand the platform's utility beyond individual passenger transport, targeting corporate clients and frequent users while leveraging the existing driver network for efficiency.[35] Cabify Logistics, encompassing services like Cabify Envíos, enables package delivery for businesses, including immediate, scheduled, express, same-day, next-day, and flexible options. Launched in April 2020 amid the COVID-19 pandemic, this last-mile delivery arm supports e-commerce and courier needs with real-time tracking, route optimization, and carbon-neutral shipments insured up to €1,000 per package. Businesses can manage multiple shipments via a dedicated dashboard, integrating storage and distribution for scalable operations across Spain and select Latin American markets.[36][37][38] For recurring users, Cabify introduced Cabify Go! in June 2021 as a multimodal subscription model, initially piloted in Madrid for 40,000 users. The primary "Todo en uno" plan, priced at €6.95 monthly, grants a 10% discount on all rides, with add-ons for bikes or scooters in supported cities to promote integrated urban mobility. This service aims to reduce per-trip costs for high-volume riders while encouraging sustainable transport combinations, though availability varies by region and has evolved since launch.[39] Cabify Business extends supplementary features for enterprises, including hourly vehicle rentals, shared route pooling to cut costs by up to 50%, and centralized trip management with analytics for expense control. These tools allow companies to issue prepaid balances or discount codes to employees, monitor journeys in real-time, and book specialized services like airport shuttles or event transport, differentiating from consumer-focused rides by emphasizing compliance, reporting, and integration with corporate systems.[35][40]Pricing and Commission Structure
Cabify calculates ride fares using a fixed pricing model that provides users with an upfront estimate based on distance, predicted journey duration, selected vehicle category, and any optional extras such as child seats or additional stops.[41] Unlike competitors employing dynamic surge pricing, Cabify generally maintains stable rates unaffected by real-time traffic or demand fluctuations, though high-demand surcharges may apply in select cities during peak periods.[33][42] Fares vary by location and service tier—such as Economy, Comfort, or Executive—with city-specific rates published on Cabify's platform; for instance, in Madrid, base rates include minimum fares and per-kilometer charges tailored to vehicle classes.[43] The company's primary revenue derives from commissions deducted from each completed ride fare, typically ranging from 15% to 25%, with a commonly reported average of approximately 20%.[44][45] Drivers receive the balance after commission and any applicable taxes or fees, operating without fixed salaries and retaining flexibility over working hours.[46] In specific markets like Spain, Cabify reduced commissions to as low as 5% for partnered taxi drivers in March 2023 to enhance driver attraction amid competition, though standard rates for vehicle-for-hire-with-driver (VTC) services remain higher.[47] Supplementary revenue streams, such as subscription discounts via Cabify Go! plans offering 10% off rides for €6.95 monthly, indirectly support pricing accessibility but do not alter the core commission framework.[39]Driver Recruitment and Operations
Cabify's driver recruitment begins with applicants submitting a form via the Drivers section of the company's website, after which Cabify contacts candidates for further evaluation.[48] [49] The process emphasizes verification, including biometric identity checks via selfie in Latin American markets such as Argentina, Chile, Colombia, and Peru to ensure secure onboarding.[50] Core requirements include a valid driving license, government-issued photo ID, a vehicle meeting age and model standards, minimum driving age per city, and a certificate confirming no criminal or sexual offense convictions.[49] In Spain, vehicles must hold a VTC (Vehículo de Turismo con Conductor) license to comply with national regulations; drivers lacking personal access to such vehicles can partner with authorized fleet operators.[48] [51] Requirements in Latin America align closely but adapt to local laws, without the VTC mandate, focusing instead on standard licensing and vehicle fitness.[49] Cabify enforces a selective hiring standard, mandating that drivers be licensed professionals who pay taxes and operate approved vehicles, distinguishing it from less stringent competitors.[52] Once onboarded, drivers operate via the dedicated Cabify Drivers app, which displays high-demand zones to optimize earnings, routes ride requests with origin and destination details, and enables GPS tracking for journey monitoring.[49] Payments are disbursed regularly and transparently, with drivers retaining the majority of fares after Cabify's commission of approximately 20% per ride.[53] [44] The platform supports over 1.2 million drivers across Spain and Latin America, providing flexible scheduling, passenger identification for safety, dedicated support channels, and training to achieve high-rated status.[25] [49]Technology and Safety
Platform Features and App Functionality
The Cabify mobile application, available for iOS and Android devices, serves as the primary interface for users to request rides, with functionality extending to web-based booking via the company's platform. Users initiate the process by registering an account, entering their pickup location (often auto-detected via GPS) and destination, and selecting from predefined vehicle categories tailored to needs such as passenger count or special requirements.[33] The app displays an estimated fare upfront, calculated on fixed rates incorporating distance, estimated time, and service type, without dynamic surges influenced by demand or traffic conditions.[33] Key ride options include standard "Cabify" chauffeur-driven vehicles, "ASAP" for immediate taxi access at fixed prices, premium "Plus" high-end cars, "Group" options accommodating up to six passengers, "Kids" services equipped with child seats for groups 1, 2, or 3, and "Taxi Access" for users with reduced mobility via adapted EuroTaxi vehicles.[33] Supplementary features encompass short-term rentals like "WiBLE" for zero-emission cars billed by the minute and electric mopeds with provided helmets, alongside package delivery services for secure, tracked shipments.[33] Upon confirmation, the app matches users with verified professional drivers operating licensed, modern vehicles, emphasizing quality control over peer-to-peer models.[4] Functionality extends to real-time GPS tracking, allowing passengers to monitor the vehicle's approach, route deviations, and arrival estimates directly in the app.[4] Trip sharing enables users to send geolocated details—including driver identity, vehicle plate, and live route—to contacts via integrated sharing tools, with compatibility for Apple Watch notifications.[33] Payments process seamlessly in-app through linked cards or other methods, with receipts and trip history archived for review; the platform supports advance reservations and business accounts for invoicing and cost controls.[33] Safety integrations feature a dedicated emergency button for immediate contact with support or authorities, alongside 24/7 customer assistance and accessibility aids such as voice playback for ride notifications, benefiting users with visual or cognitive impairments.[54] User preferences, like preferred vehicle types or carbon-neutral electric options, can be customized in-app profiles to streamline future bookings.[4]Safety Measures and User Protections
Cabify employs a multi-layered approach to safety, emphasizing driver verification, real-time monitoring, and user-accessible emergency tools. Drivers undergo identity verification processes, including biometric onboarding and selfie-based checks integrated with partners like Veridas and Incode Technologies, enabling rapid authentication in under one minute to ensure only vetted individuals operate on the platform.[55][56] All trips feature geolocation tracking, with users able to share live journey progress with designated contacts via the app, providing transparency and external oversight during rides.[57][58] A prominent user protection is the in-app safety button, accessible during trips as a shield icon in the top right, which connects riders to 24/7 support, enables direct calls to emergency services, and allows trip sharing for immediate alerts.[59][60] For drivers, a "Secret Signal" feature permits discreet notifications to Cabify's team if unsafe conditions arise, complementing the platform's commitment to bidirectional protections.[61] Data security measures safeguard personal information, with authentication protocols to prevent fraud, though specific encryption standards are not publicly detailed beyond general compliance claims.[57] In response to health risks, such as during the COVID-19 pandemic in 2020, Cabify mandated driver use of masks where required by authorities and promoted protective attire, though these were temporary adaptations rather than permanent fixtures.[62] For corporate users, additional layers include trained drivers and fleet controls, but individual protections remain centered on app-based tools without mandatory rider screening.[63] While these features position Cabify as prioritizing safety over competitors in user testimonials, independent audits of verification efficacy or incident response times are not publicly available from the company.[4]Financial Performance
Funding Rounds and Capital Raised
Cabify secured its first funding in September 2012, marking the beginning of its capital-raising efforts to support initial operations in Spain.[8] Subsequent early-stage rounds, including seed and Series A through D, contributed to building its platform, though specific amounts for these pre-2018 investments remain less documented in public records. A pivotal round occurred on January 23, 2018, when Cabify raised $160 million in Series E funding, led by Rakuten Capital, with participation from TheVentureCity, Endeavor Catalyst, GAT Investments, and Liil Ventures, among others; this valued the company at $1.4 billion.[7] [64] In March 2023, Cabify completed a $110 million (€100 million) financing round to fuel expansion in Latin America and Spain, backed by investors such as Orilla Asset Management and AXIS via the Fond-ICO Next Tech fund.[25] [64] More recently, on January 11, 2024, the company obtained $16.4 million in venture debt financing from lenders including Bayrock, Rakuten Capital, Alpha Wave Global, and Reimagined Ventures.[5] [8] The following table summarizes select major funding rounds:| Date | Round Type | Amount Raised | Key Investors |
|---|---|---|---|
| January 23, 2018 | Series E | $160 million | Rakuten Capital, TheVentureCity, Endeavor Catalyst, GAT Investments[7] |
| March 28, 2023 | Financing | $110 million | Orilla Asset Management, AXIS (via Fond-ICO Next Tech)[25] |
| January 11, 2024 | Venture Debt | $16.4 million | Bayrock, Rakuten Capital, Alpha Wave Global[5] |
Revenue Growth and Key Metrics
Cabify achieved gross revenue of $688 million in 2022, followed by a 30.7% increase to $899.1 million in 2023, marking the third consecutive year of over 30% year-over-year growth.[66][67][27] This expansion was driven by rising ride volumes amid post-pandemic recovery and operational scaling in Europe and Latin America.[68]| Year | Gross Revenue (USD million) | Year-over-Year Growth |
|---|---|---|
| 2022 | 688 | - |
| 2023 | 899.1 | 30.7% |