Cabify, the Spanish ride-hailing app, reported losses worth €4.9m in 2022 in the Spanish market, in comparison to €346k the previous year.
The Madrid-based company reported revenues of €199.5m in 2022 in Spain — 27.5% more than in 2021.
The growth in Cabify’s losses and revenues comes as the startup boosts its investment in the Spanish market.
The scaleup — which operates in Spain and Latin America — had reportedly been planning to float on the stock market this year. But the company said in a statement that it is investing in measures to incentivise demand, including in marketing and tools to improve the offer of vehicles.
This month Cabify is facing a series of strikes by some of its unionised Madrid-based drivers employed by its subsidiary Vecttor, according to the Sindicato Libre de Transporte (SLT) union, which claims staff are not being paid for working overnight or longer hours. They are also requesting more annual leave and that drivers are hired directly by Cabify rather than Vecttor, in which Cabify owns a majority stake.
To use a privately owned vehicle for ride-hailing in Spain, the vehicle must have a VTC (Vehículos de Turismo con Conductor) licence. The vast majority of these licences are held by VTC companies that own fleets of vehicles and employ riders to drive those vehicles, such as Vecttor. Traditionally, ride-hailing firms like Uber and Cabify have partnered with these companies to run services in Spanish cities.
