Cabify to lose ground to Uber in its base Madrid as row with Auro worsens

Ride-hailing platform Cabify risks losing ground to foreign rivals like Uber and Bolt in its home base Madrid, Reuters says.

Cabify is one of Spain’s few ‘unicorn’ tech startups.

A row with Auro over exclusivity is set to make Cabify lose grounds to Uber and Bolt.

Auro employs 1,100 of Cabify’s drivers.

Auro has decided to switch from Cabify to either Uber or Bolt or both from Jan. 20, entrepreneur Felix Ruiz, co-founder of Auro, told Reuters.

Auro owns the cars and licences and employs the drivers.

Cabify could play the second fiddle to Uber in its home ground if Auro pulls away as Cabify and Uber have about the same market share in Madrid.

Cabify has told Reuters that an arbitration court ruling in June obliged Auro’s fleet to keep working with it.

Ruiz, however, said the contract with Cabify had been cancelled and his company was prepared to defend its decision in courts.

Auro’s pool of 2,500 delivery riders is already working with Uber Eats and other retailers, Reuters reports.