Cabify has published its annual sustainability report that includes the 2019 annual results. For the first time, the Spanish unicorn of mobility announces benefits in its accounts. Which means that Cabify achieves profitability with a net profit of 2.7 million euros.
This, in contrast to the data from the previous year, in 2018, which were losses of 1.8 million euros according to the data for the year, make the company profitable for the first time in its history. A goal that had been chasing for a long time.
These figures, at least those of 2019, they are supported by the increase in their activity, specifically 54% in terms of journeys and 35% in passengers. On the other hand, Cabify has also increased operating cities during the past year, in addition to opening up to new business models. These include the entry of the taxi through its application, after the reform of the regulations for reservations within the group, and the direct management of VTC fleets. In April 2019, Rosauro Varo sold 2,000 VTC licenses to Cabify in exchange for shares in the company.
All these movements have meant an increase in income by 54%, reaching 223 million euros. In addition, the company stresses the payment of 12.8 million in taxes. A well-known criticism in the more traditional sector of mobility that accuses the company of not paying for its operations in Spain by having its tax office in Delaware, United States.
With scissors since 2019
Cabify achieving profitability in 2019 it is good news for the entrepreneurial sector. Especially taking into account the situation, due to the pandemic crisis due to the coronavirus, which is taking shape from now on.
But the truth is that profitability within the Spanish unicorn of mobility has not come only by way of increasing its activity. Cabify had been looking for these figures at the request of investors with a possible IPO (now frozen). For this, it has been cutting the hiring tap for months and freezing expenses to reduce losses.
The scissors, according to La Información, took 100 employees of the Spanish team ahead in 2019 – in addition to the reduction of the delegations in Latin America. A strategy similar to that of Uber, which also announced cuts in non-strategic areas.
Cabify reaches profitability in 2019 yes, but now we are in 2020
Now, the truth is that the situation has changed for everyone. And Cabify was not going to be any different when it comes to the consequences of the coronavirus pandemic.
The company’s staff, which has 400 employees, is affected by an ERTE – in this case due to shorter working hours. Drivers, most of them not directly dependent on the tech and operating through VTC companies – have also been affected by the temporary layoffs.
Cabify does not provide figures on its activity during the pandemic, but the taxi already points to a reduction of more than 70% in its activity and its direct rivals, Uber, to 80% of the business. Which translates into a loss of profits of thousands of euros for all parties, drawing a 2020 far removed from the green numbers.
Uber, in fact, already misses a disastrous year for its accounts. 2020 was aiming to be the year of profitability for the American giant, but with the first peaks of the pandemic already putting aside the idea.
In spite of everything, and through a statement, Cabify ensures that the good results of 2019 will help them cushion the drop in activity due to the coronavirus.
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