While Uber and taxi companies are fighting over different regulations in court in pretty much every city out there, Berlin-based T-Dispatch found a solution that could solve part of the problem – and quietly raised €1 million.
The problem taxi companies face with Uber is not only the price and the new competition but also the technology. While Uber operates through a simple app, taxi companies receive calls and requests through their own websites and have a hard time organizing fleets, since they do not know if a driver is available or who might be booked with other services such as mytaxi. Also, cab drivers pay up to 15% of their fare price when accepting a mytaxi request.
T-Dispatch idea to be the Uber for taxis
While Uber and mytaxi have one brand and one system, T-Dispatch connects the local transport fleets (including taxis, limousines and in the future also food delivery services) and on demand services.
T-Dispatch is a cloud SaaS (software as a service) enterprise software that connects and organizes taxi and minicab fleets in its CMS. On the one hand, it collects all requests for one taxi fleet. It also offers a white label solution for cabs to be used. Besides the CRM and an own app, T-Dispatch offers route navigation, sharing documents and requires no extra hardware other than an iPhone or Android device.
Besides that, T-Dispatch also offers airports or railway companies, such as Abellio (UK), ways to let customers book a taxi right over the middleman’s platform.
Having launched two years ago, the team behind T-Dispatch, founder and CMO Bryony Cooper and CTO Mario Brandao, now grew to 17 people. In November, the team moved into new office space at Hackische Höfe next to startups such as HelloFresh, Hitfox, and betterpay.
Pitching at Seedcamp in Berlin, they found their first angel in the audience. Found Fair invested €200,000 and provided office space. T-Dispatch later raised €500,000 from HTGF as well as another half a million from angel investors such as Martin Sinner (Idealo), Christian Vollman (eDarling, Research Gate), and Win.Rar. The investment was mostly used to develop the backend software, T-Dispatch explains.
The Business Model
Cab companies can pick and switch between two models: €0.79 per booking with a minimum of 200 bookings or a monthly fee per driver of €18.
In countries such as India, Australia, France, Switzerland or Congo, the T-Dispatch is already in use, but its priority is to launch in English speaking countries first.
Seeing a clear demand for the service in England, London was the first market it entered.
According to T-Dispatch, London alone has 9,000 minicab companies with most of them having two to ten drivers. In Germany, that is different: Large cities rather have a very small number of cab companies. However, they have much larger fleets.
T-Dispatch plans to start its service in Germany in early 2015.
Update November 27th, 2014: A previous version of this article accidentally titled Bryony Cooper as CEO not CMO. Found Fair corrected its amount from €75,000 to €200,000.