{"id":42545,"date":"2023-10-20T15:21:58","date_gmt":"2023-10-20T15:21:58","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/uber-gets-its-first-australian-competitor-as-gocatch-expands-to\/"},"modified":"2023-10-20T15:21:58","modified_gmt":"2023-10-20T15:21:58","slug":"uber-gets-its-first-australian-competitor-as-gocatch-expands-to","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/uber-gets-its-first-australian-competitor-as-gocatch-expands-to\/","title":{"rendered":"Uber gets its first Australian competitor as GoCatch expands to"},"content":{"rendered":"
\"GoCatch<\/div>\n

Taxi booking app GoCatch is expanding into the ridesharing market and taking on $US60 billion startup giant Uber at its own game.<\/p>\n

Launched in Sydney on Monday night, the GoCar function will be integrated into the existing GoCatch app, allowing users to switch between booking a taxi and using ridesharing.<\/p>\n

GoCatch co-founder and CEO Ned Moorfield says it will provide much-needed local competition to the US ridesharing startup.<\/p>\n

\u201cWe\u2019re taking on Uber directly,\u201d Moorfield tells StartupSmart.<\/em><\/p>\n

\u201cUber has had a grip on the market for long enough.\u201d<\/p>\n

The key point of difference<\/strong><\/h3>\n

GoCar will operate in much the same way as Uber, with transactions staying within the app and a rating system for drivers and users.<\/p>\n

But the startup is banking on one key differentiator: No controversial surge pricing.<\/p>\n

\u201cThat\u2019s something that people really don\u2019t like about Uber,\u201d Moorfield says.<\/p>\n

Instead, GoCar will have two different prices for peak and off-peak times.<\/p>\n

According to Moorfield, GoCatch could be between 10-15% cheaper than Uber during surge times but will be \u201cbroadly the same\u201d during normal periods.<\/p>\n

\u201cWhen they surge people will really know the difference,\u201d he says.<\/p>\n

\u201cFor a bunch of people the absence of surge pricing is pretty appealing.\u201d<\/p>\n

The peak times will be from 6am to 10am Monday to Friday, 5pm to 10pm Monday to Thursday and 6pm to 2am Friday to Sunday.<\/p>\n

During these times Moorfield says the ridesharing service will be 10-15% cheaper than taxis, and 20-30% cheaper during off-peak periods.<\/p>\n<\/p>\n

The local competitor is also trying to offer a more enticing prospect for drivers, with payments made daily instead of Uber\u2019s weekly payments.<\/p>\n

GoCar will also be taking a 15% commission on all fares compared to Uber\u2019s 20% cut.<\/p>\n

A local option<\/strong><\/h3>\n

Moorfield is also looking for locals to rally behind an Australian company rather than the US giant.<\/p>\n

\u201cWe\u2019re 100% Australia owned and we were built from the base up five years ago,\u201d he says.<\/p>\n

\u201cFor some people that will be an important differentiator.<\/p>\n

\u201cWe\u2019re running our own race and we\u2019ll deliver a great service.\u201d<\/p>\n

GoCar will be taking on a company estimated to be worth $US62.5 billion, but Moorfield says other countries have shown that there\u2019s room in the ridesharing market for local competitors.<\/p>\n

\u201cThere\u2019s a great opportunity in the market for a strong domestic competitor in ridesharing,\u201d he says.<\/p>\n

\u201cThere\u2019s every reason to believe there are opportunities in the Australian market and we\u2019re in prime position to capture them.<\/p>\n

\u201cWe\u2019re going to provide some much needed competition in the market. There\u2019s room for two of us.\u201d<\/p>\n

More than 350,000 Australians have downloaded the GoCatch app, with 100,000 taxi bookings made through the platform each month. According to a Deloitte study<\/a>, there have been more than 10 million UberX rides in Australia in the last two years.<\/p>\n

The study also found that Uber provided $81 million of net benefits for consumers.<\/p>\n<\/p>\n

Bringing the drivers on board<\/strong><\/h3>\n

Despite operating in secrecy until now, Moorfield says GoCar already has a \u201creally good base\u201d of drivers signed on.<\/p>\n

\u201cIt\u2019s been challenging when you\u2019re going under the radar but we put the word out there with existing ridesharing drivers and we now have a permanent driver\u2019s centre so we\u2019re starting to get more walk-ins,\u201d he says.<\/p>\n

Many of these drivers are existing Uber drivers, he says, who will either work for both services or jump ship completely. There is currently an estimated 13,000 Australian UberX drivers.<\/p>\n

\u201cDrivers will use multiple sources of work and there\u2019s plenty of interest from existing Uber drivers,\u201d Moorfield says.<\/p>\n

Despite this intense switch of focus to the ridesharing market, he says GoCatch will still be working to help taxi drivers.<\/p>\n

\u201cWe\u2019re certainly not turning our back on taxis,\u201d he says.<\/p>\n

\u201cThere\u2019ll be more work for them as it will attract more passengers to the platform.\u201d<\/p>\n

Waiting for the regulators<\/strong><\/h3>\n

Initially GoCar will only be available in areas of Sydney including the inner west, eastern suburbs and CBD, but Moorfield says he hopes to expand to other areas once ridesharing is regulated.<\/p>\n

\u201cThere\u2019s a lot of momentum towards legalising it and we think there will be a domino effect,\u201d he says.<\/p>\n

Ridesharing was regulated and legalising by the NSW and ACT governments late last year, and Moorfield says this is what led GoCatch to create its own ridesharing function.<\/p>\n

\u201cThat was the real catalyst \u2013 that was when we started having a serious look at rolling it out,\u201d he says.<\/p>\n

Moorfield admits it will take a while for GoCar to establish a foothold in the market.<\/p>\n

\u201cLike any online marketplace you need to drive both sides, so we\u2019re asking people to be a bit patient as we build up the drivers,\u201d he says.<\/p>\n

\u201cBut it\u2019s an exciting next step for the business. This is where the growth and investment in the point-to-point transport market really is.<\/p>\n

\u201cThe passengers are going to love it and appreciate the choice. There\u2019s room for two of us.\u201d<\/p>\n

NSW minister for innovation Victor Dominello has welcome the local ridesharing service.<\/p>\n

\u201cThe NSW government supports innovative business models that offer greater choice for consumers and promote competition,\u201d Dominello says in a statement.<\/p>\n

\u201cLast year we moved to legalise ridesharing services and it is pleasing to see new players such as GoCatch entering the market following that decision.\u201d<\/p>\n

Follow StartupSmart on Facebook<\/strong>, Twitter<\/strong>, LinkedIn<\/strong> and SoundCloud<\/strong>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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