After an eight-year absence, the world’s largest ride-sharing company Uber filled its only blank space in Central Europe, returning to Hungary in a deal with Budapest traditional cab company Főtaxi.
After the Budapest Transport Centre, the National Transport Authority also gave the go-ahead for the Budapest launch on April 16, 2024, completing the formal approval process.
With the approval in hand, Uber’s team now needs to recruit drivers for the platform, which they can join within days. The service is expected to launch in Budapest in early summer, Uber added.
Uber is planning to enter the Hungarian market in partnership with Főtaxi, whose license application was submitted in February by F Mobilitás Kft., a subsidiary of Főtaxi. Főtaxi recently sent an internal letter to its drivers, reassuring them that they will only get better conditions with Uber’s return. The letter said that the cooperation would mean even more rides and revenue for its drivers, but did not explain why or how.
Uber left Hungary in 2016 after protests from traditional local companies that its business model was undercutting their livelihood.
Under the agreement, although Uber will operate under the umbrella of Főtaxi, its application and service will be independent of it.
“The Főtaxi app and service will not be affected by the planned entry of Uber. The Főtaxi app will continue to operate as before, and the Uber app will be available to call Uber drivers who will be transporting passengers with Uber Taxi,” Uber wrote in an answer to news portal Telex’s inquiry.
