Profits tumble at taxi app Free Now

The directors said the business had started a trial with an electric scooter provider in Dublin to accompany the ongoing change within the mobility market.

Pre-tax profits at the firm which operates the taxi app Free Now tumbled by 75% to €1.6m in 2021.

Accounts filed by Free Now Ireland Ltd show the business sustained the sharp drop in profits as revenues increased by 38% from €16m to €22.13m.

The pre-tax profit of €1.6m for 2021 compares to pre-tax profits of €6.38m for 2020.

The directors said Free Now Ireland had focused on restructuring its own cost structure as well as adjusting the expense mechanism for the App usage via the Free Now group.

The firm’s profits slumped in 2021 after the company’s administrative costs increased almost threefold, from €6.4m to €17.8m The directors said they expected the company to stay in a profit position while still investing into the current business models to increase their activity in Ireland.

This month, Free Now is to amend its technology fee, charging between €1 and €5, starting at €1 for a regular four-seater taxi while a taxi with five seats or more will cost an extra €3, as well as Free Now’s “Reserve Fleet”, which are taxis with four-eight seats. A premium vehicle will have a €5 technology fee.

In their report, the directors said the business had started a trial with an electric scooter provider in Dublin to accompany the ongoing change within the mobility market.

The company changed its name from Mytaxi Network Ireland Ld to Free Now Ireland Ltd in February last year.

At the end of December 2021, the firm’s shareholder funds stood at €11.46m that included accumulated profits of €2.09m.