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Why Hailo's Business Model is so successful?

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Hailo’s Company Overview

Hailo, founded in 2010, is a transportation technology company that provides innovative solutions for the taxi industry. The company initially gained prominence for its e-hailing app, designed to connect passengers with licensed taxi drivers seamlessly. Hailo focuses on enhancing the efficiency and convenience of urban transportation by leveraging technology to streamline the traditional taxi service. Hailo is a mobile app that puts people just two taps away from licensed taxis, private cars, or motorbike taxis. The apps are available in over 20 cities worldwide. Launched in November 2011, Hailo quickly grew with over 60,000 downloads in its first month of operation. Hailo's app is available for iOS, Android, Windows Phone, and Blackberry smartphones. The company has raised $50m in funding from various investors, including Richard Branson and KDDI. Hailo's core business model revolves around its e-hailing platform, connecting passengers with licensed taxi drivers in real time through a user-friendly mobile application. The platform optimizes taxi dispatch, reducing passenger waiting times and helping drivers maximize ride efficiency. Hailo has also expanded its services to offer business solutions, including dispatch software and technology tools for taxi fleets, contributing to modernizing the entire taxi industry. Hailo primarily generates revenue through a commission-based model. The company charges taxi drivers a percentage fee for each ride facilitated through its platform. This commission model aligns the interests of Hailo with the success of taxi drivers, as the more rides they complete through the platform, the more revenue both parties generate. Additionally, Hailo may explore partnerships with taxi fleets, licensing its dispatch software and other technology solutions for a subscription fee, further diversifying its revenue streams. Hailo's commitment to improving taxi services through technology has positioned it as a key player in the transportation industry. It connects passengers with reliable and licensed taxi options while offering innovative tools to taxi operators for increased efficiency and customer satisfaction.

Country: England

Foundations date: 2010

Type: Private

Sector: Transportation

Categories: mobility

Hailo’s Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: rewards me, fun/entertainment, badge value

Functional: saves time, simplifies, reduces effort, avoids hassles, informs

Hailo’s Related Competitors

Hailo’s Business Operations

On-demand economy:

The on-demand economy is described as economic activity generated by digital marketplaces that meet customer demand for products and services via quick access and accessible supply. The supply chain is managed via a highly efficient, intuitive digital mesh built on top of current infrastructure networks. The on-demand economy is transforming commercial behavior in cities worldwide. The number of businesses, the categories covered, and the industry's growth rate are all increasing. Businesses in this new economy are the culmination of years of technological progress and customer behavior change.

Revenue sharing:

Revenue sharing occurs in various forms, but each iteration includes the sharing of operational gains or losses amongst connected financial players. Occasionally, revenue sharing is utilized as an incentive program ? for example, a small company owner may pay partners or colleagues a percentage-based commission for recommending new clients. Occasionally, revenue sharing is utilized to share the earnings generated by a corporate partnership.

Platform as a Service (PaaS):

Platform as a Service (PaaS) is a class of cloud computing services that enable users to create, operate, and manage apps without the burden of establishing and maintaining the infrastructure usually involved with designing and developing an app.

Sharing economy:

The sharing economy eliminates the necessity for individual asset ownership. The phrase sharing economy is an umbrella word that encompasses various definitions and is often used to refer to economic and social activity that involves online transactions. Originally coined by the open-source community to refer to peer-to-peer sharing of access to goods and services, the term is now occasionally used more broadly to refer to any sales transaction conducted via online marketplaces, including those that are business to consumer (B2C) than peer-to-peer.


A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Transportation as a Service (TaaS):

Transportation as a Service (TaaS), also referred to as Mobility as a Service (MaaS), refers to a trend away from privately owned means of transportation and toward subscription-based mobility solutions. This is accomplished by integrating transportation services from public and private suppliers through a unified gateway that organizes and maintains the journey, which customers may pay for with a single account. Users may either pay per journey or subscribe to a monthly subscription for a certain distance.


Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

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