Hailo launched in London in 2011 as an app for hailing licensed black cabs. Unlike Uber, which used unlicensed drivers, Hailo partnered with existing taxi drivers. This gave it regulatory advantages and driver loyalty. The company raised $100M and expanded to 16 cities including New York, Tokyo, and Madrid. At its peak, Hailo had 50,000+ drivers.
Company Data
- Founded: 2011 — Jay Bregman, Ron Zeghibe
- Total Funding: $100 million
- Failed: Sold to Daimler (2016), effectively shut down
Working with licensed taxis meant higher fares than Uber's subsidized prices. When Uber flooded European cities with driver incentives and cheap rides, Hailo's price-competitive disadvantage became fatal. The company sold its remaining assets to Daimler's MyTaxi in 2016, and the Hailo brand disappeared.
Key Lesson
Regulatory compliance and ethical practices are important, but if your competitor can offer 50% cheaper rides via subsidies, consumers will switch. Sometimes doing the right thing isn't enough.