Gett Grows in Israel, and so do its Headaches

israel
gett

(Harry) #1

One of Uber's main rivals in Israel is Gett, this Israeli based gig company has a presence in the US, Russia, UK, and Israel and is currently the leading gig rideshare company in Israel with around 28% of all rides attributed to a Gett taxi. Gett is similar to Uber in that it keeps its data secret, but is different since it is not a rideshare app but a taxi app. Gett operates in a very similar fashion to Uber, in that it connects taxis to clients, but it provides a number of advantages for both taxis and regulators.

Gett's app allows taxi drivers to use both the app as well as retain their taxi rank system. The app allows passengers to pay with credit cards, and the tax authorities are less worried by taxis using Gett app since the income is recorded. Gett does not own taxis, just like Uber, Gett only provides an app service and charges a fee per ride.

As of the end of 2017, the statistics provided by the Israeli Ministry of Transport shows that Gett is now used by 8,000 out of 25,000 taxis, and they cover approximately 30% of all rides in the country. Gett is estimated to perform 20 million rides a year. The population of Israel is only around 8 million people. The overall pay for ride market is around $1.4 billion per annum, so Gett has a large chunk of this market and guards it zealously.

Gett is in an interesting position, it does not pose a threat to taxi drivers since it is a taxi app, but it does present a threat to taxi service since it is essentially a digital taxi rank. A very recent incident caused a shock wave in the Israeli taxi system, the Ben Gurion International Airport in Lod (close to Tel Aviv) has been the operational territory of Hadar-Lod taxi service, and they have held this location for over 25 years. Last year the government placed a new tender, and Gett won it. They won it by reducing the price for service by 31%. The airport tender is valued at 1 million rides a year.

Hadar-Lod and the Taxi Owners Association immediately filed a complaint stating that Gett is defying the anti-trust laws and is operating as a virtual monopoly. They are claiming that according to article 26 of the Israeli anti-trust laws, Gett controls a majority stake of the market and as such, once it takes over the Airport contract will grow to over 40% of the market. They claim that the current bid is so low, that it is improbable and not profitable, and Gett is relying on alternative sources of funding to supplement the initial operational costs until they have full control and will then up prices slowly to meet what Hadar-Lod is working with now.

Whatever the outcome of the claim, Gett is slowly growing and taking over the Israeli landscape, they are active in keeping Uber at a minimum and even provide testimony to the government committees and court hearings against Uber. Uber is a major threat to both Gett and Taxi's in Israel, once Uber gets its license to operate, thousands of potential Uber drivers will flood the streets and Gett as well as standard taxi services will fall the same way they fell in the US.


Be Careful Who you Sue, the Demise of Egyptian Taxis
(Andrew Martin) #2

Gett can be bigger then it is if it would start to really farm out. in fact, if Gett has any real gumption it will try to partner up with Didi, and take over the global taxi app scene. Their only competition in that case will come from Didi’s recent exploration in Japan and their partnership with SoftBank and Tokyo Taxi. Maybe Gett missed the boat…if Didi decides to leverage the Tokyo taxi app, it will also pose a threat to Gett and other taxi apps.


(Steve Mann) #3

Gett will overcome Uber in Israel, but will it beat Uber in the States?