What Indriver Did Right That Hailo and Similar Apps Didn’t

Ride-Hailing App / Startup Guides

What Indriver Did Right That Hailo and Similar Apps Didn’t

Last Updated on October 11, 2026

Key Takeaways

What You Will Learn

* Hailo hailed licensed black cabs and grew quickly, then lost ground in a market where cheaper rivals were undercutting taxi fares.
* inDriver lets the rider propose a fare and the driver accept, decline, or counter it, so price is set by the two people in the ride.
* inDriver’s founder says the company takes about 12% commission and avoids driver bonuses and rider discounts.
* Hailo reported a 21.5 million pound loss in 2014 and described itself as purposely unprofitable while it invested in growth.
* inDriver operates in nearly 900 cities across Central Asia, Africa, Latin America, and elsewhere.
* The model has costs: the Philippine regulator suspended inDriver in January 2024 over alleged fare haggling.
* A business model canvas shows how an inDriver clone earns money and where it carries risk.
* OyeLabs’ inDriver clone page lists bidding, counter-offers, driver verification, wallets, zone fees, and an admin panel.

Real Insights

* Hailo and similar apps competed on convenience, while inDriver competed on who controls the price.
* Skipping subsidies is a strategy: growth then depends on the product, not on burn.
* Market choice mattered: Hailo took on Uber in Manhattan with yellow cabs, while inDriver spread across many other cities.
* Driver choice is a real feature, yet some drivers say they still feel pushed toward lower fares.
* Regulation can decide your launch plan, so test your bidding rules with local counsel in every market.
* Copy the mechanism and the discipline, not the brand, and prove one city before you scale.

What Indriver Did Right That Hailo and Similar Apps Didn’t

Most ride-hailing founders study Uber. A more useful study is why one scrappy app spread across hundreds of cities while an early, well-funded rival like Hailo was folded into another company. This guide looks at what inDriver did right that Hailo and similar apps did not, and what it means if you plan to build an inDriver clone for your own market.

The short version is control. Hailo gave riders a faster way to hail a licensed cab at the going fare. inDriver let riders and drivers agree on the fare themselves, kept its commission low, and chose markets where flexible rides mattered. Similar apps built on fixed fares and growth spending found that harder to defend.

I lead mobile at OyeLabs, so I read every ride-hailing story from the build side: what the app does, who it lets decide, and what it costs to run. The company now styles its name inDrive, but I use inDriver here because that is still how most people search for it.

Quick Answer

  • Hailo hailed licensed black cabs and expanded to cities on four continents, but it kept losing money and merged into MyTaxi in 2016.
  • inDriver lets riders name a fare and drivers accept, decline, or counter, so price becomes a negotiation instead of a fixed output.
  • Its founder says inDriver takes about 12% commission and skips driver bonuses and rider discounts, which we could not verify independently.
  • It built a presence in nearly 900 cities across regions where cheap, flexible rides matter, then began adding services beyond rides.
  • Regulators can push back: the Philippines suspended inDriver in January 2024 over alleged fare haggling.
  • A clone copies the bidding loop, but it also needs verified drivers, wallets, zone settings, and local legal review.
  • OyeLabs lists inDriver clone packages from $950, but its page quotes several launch windows, so confirm yours in writing.

What Happened to Hailo

Hailo was started in London by three technology entrepreneurs and three taxi drivers, and it launched to passengers in November 2011. The app let riders hail a licensed black cab from a phone, and the team recruited drivers first so that supply would be reliable. By 2014 it reported millions of rides and a network of more than 35,000 drivers, according to a Taxi Point history.

The product worked, but the market moved. The same history explains that UberX undercut metered fares by avoiding many of the rules that bind licensed taxis. It worked only with licensed drivers, so it could not match Uber’s scale or price, and Uber’s far larger funding let it run at a loss for years.

The US push added pressure. Hailo raised $30 million for American expansion and chose to work with yellow cabs in Manhattan, where Uber dominated the pricier town car segment and left Hailo with cheaper rides. It also reported a loss of 21.5 million pounds in 2014 and called itself purposely unprofitable while it invested in technology and marketing.

The end came through a merger. In 2016 Hailo agreed to join MyTaxi, the Daimler-owned ride-hailing company, and the Hailo brand was retired. MyTaxi later became FREENOW. Our reading is that Hailo grew by adding cities and cabs, but it never changed who set the price, and that left it exposed.

 

Core Insight: Hailo scaled cabs and convenience, but it never changed who controls the fare, which left it exposed to cheaper rivals.

 

Letting People Set the Price

inDriver’s core move is simple. Drivers bid for a passenger’s trip, an algorithm recommends prices based on the origin and destination, and the passenger picks from the bids. Drivers can accept, decline, or counter with another offer. Rest of World notes that, unlike Uber, Lyft, and Didi, inDriver does not automatically match passengers and drivers. That moves price discovery from the company to the people in the ride.

The economics follow from that design. Founder Arsen Tomsky told Rest of World that inDriver takes about 12% commission and does not set the fares. He also said rivals hold fares down with driver bonuses and rider discounts, while inDriver avoids both. That is the founder’s account, not an audited figure, but it contrasts sharply with Hailo’s description of itself as purposely unprofitable in 2014.

Drivers also get real choice. Tomsky says they can skip fares without penalty and filter out offers they consider too cheap, and he describes drivers as small entrepreneurs. In our analysis, that matters for supply quality, because a driver who picks trips is less likely to resent the platform than one dispatched to a fare they dislike.

There is a counterpoint. Rest of World also reports that some drivers say they are often forced to agree to lower fares, so choice on paper is not always choice in practice. A bidding app has to guard against a race to the bottom, which is why recommended-price guidance and fare controls belong in the first version of any build.

Choosing Markets Uber Had Not Won

inDriver was founded in Yakutsk, Siberia, and now operates in nearly 900 cities across Central Asia, Africa, Latin America, and elsewhere, according to Rest of World. It has almost 3,000 people in 28 offices, and it entered Southeast Asia more recently, where it is active in six countries including Malaysia, Indonesia, and Thailand. That is a spread of many cities, not one big fight.

Hailo’s market bet looked different. Its US effort centered on Manhattan and yellow cabs, the most contested ground in ride-hailing, where Uber already led the premium segment. In our reading, Hailo chose the strongest competitor’s home ground with price-capped supply, while inDriver built across many cities where local price sensitivity gave a bidding model room to grow.

inDriver also stretched beyond rides. Tomsky wants to add food delivery, groceries, and financial products. The company has launched financial services, entered groceries in Pakistan, and is testing dark stores in Kazakhstan through an investment in Ryadom. For a builder, the lesson is to design the app so new services can sit beside rides later.

Also Read: 7 Markets Where an InDriver Clone Has Better Chances Than Uber

 

Growth Insight: Win a few cities where your pricing model fits local demand before you chase a wider footprint.

 

Hailo and Similar Apps vs inDriver

The table puts the two approaches side by side, using only what the sources above report. Where a source is silent, the cell says so, and where a cell is our reading, it is marked with a dagger.

Topic Hailo inDriver Why it matters
Who sets the fare Licensed taxi fares in a hail-a-cab flow Rider proposes, driver accepts, declines, or counters Price control decides how flexible you can be against cheaper rivals
Supply Licensed black cabs; a private hire licence held for a time and dropped in October 2015 Drivers who can skip fares and filter offers Supply that chooses trips behaves differently from supply that is dispatched †
Growth spending Loss of 21.5 million pounds in 2014, called purposely unprofitable Founder says no driver bonuses or rider discounts Subsidy-led growth is only as strong as the funding behind it
Market bet Manhattan yellow cabs against Uber’s town cars Nearly 900 cities across several regions Pick fights you can win, not the hardest one first †
Outcome Merged into MyTaxi; brand retired Described by Rest of World as the most downloaded ride-hailing app after Uber Scale follows a defensible model
Main risk Being undercut on price Regulators and driver pay pressure The risk shifts from commercial to regulatory

The pattern is hard to miss. Hailo and similar apps tried to improve a regulated product, while inDriver redesigned the price mechanism itself. That is the difference a clone is meant to capture, and it is also where the new risks come from.

Where the Model Gets Tested

On January 23, 2024, the Philippine transport regulator LTFRB suspended inDrive’s operations pending a complaint hearing. Its chairman said the suspension responded to alleged haggling of fares, which he called a breach of the terms of inDrive’s accreditation as a transport network company. The company was given 15 days to present proof of compliance, according to GMA News.

Cost and insurance are another test. Tomsky told Rest of World that inDrive launched in Miami in 2023 and left in 2025, because operating in the United States was too expensive, largely because of insurance. The same report says some drivers complain about lower fares. A bidding marketplace has to solve regulation, insurance, and driver pay, not only the app.

My advice is to treat rules as a product input. Ask which fare rules apply in each target city, whether negotiated fares are allowed, and what insurance a platform must carry. Then scope zone-level controls in the admin panel, so that bidding, fare bands, and extra fees can differ by city when the law differs.

 

Reality Check: A bidding model can clash with fixed-fare rules, so confirm what each regulator allows before writing any code.

 

Business Model Canvas for an inDriver-Style App

A canvas shows how the lessons turn into a business. The grid below describes a ride-hailing app built on rider-set fares and driver bids. Items marked with a dagger are our inference, and unmarked items follow the capabilities on OyeLabs’ product page or the sources cited here.

Key partnerships

  • Payment gateways and SMS or OTP providers
  • Map and navigation providers †
  • Insurance partners †
  • Local transport authorities and legal advisers †
Key activities

  • Running the bid and counter-offer marketplace
  • Driver document verification
  • Recommended-fare and zone setup
  • Dispute resolution and safety
Value propositions

  • Riders: name a fare, compare offers, pick a driver
  • Drivers: accept, decline, or counter; skip fares freely
  • Operators: lower commission model with no required subsidies †
Customer relationships

  • Ratings and verified driver profiles
  • In-app notifications for bids and trips
  • SOS and ride sharing with trusted contacts
  • Referral programs
Customer segments

  • Price-conscious riders
  • Drivers who want control over fares
  • Intercity, airport, and parcel users
Key resources

  • Bidding engine and fare-guidance logic
  • Rider, driver, and admin apps
  • Verified driver base
  • Trip and pricing data
Channels

  • iOS, Android, and web apps
  • Referral and driver recruitment drives †
  • Local social media communities †
Cost structure

  • App build, hosting, and maintenance
  • Maps, SMS, and payment gateway fees
  • Driver verification and support
  • Insurance and compliance †
  • City launch marketing †
Revenue streams

  • Commission on each ride (inDriver’s founder cites about 12%)
  • Driver subscriptions and wallet recharges (add-on)
  • Priority listings and in-app advertising
  • Parcel and courier fees

Read the canvas from the value proposition outward. Every block depends on the same promise: the rider and the driver agree on the price. Commission, subscriptions, and priority listings are only ways to charge for a marketplace that works, so test whether bids convert into trips before you tune revenue.

Two blocks carry the most risk. Cost structure hides insurance and compliance, which pushed inDriver out of Miami according to its own CEO. Key partnerships include the regulators and advisers who decide whether negotiated fares are allowed at all. A plan that treats them as afterthoughts is a plan for a suspended launch.

From Lessons to Product Features

OyeLabs’ inDriver clone is a white-label taxi booking app with fare bidding and parcel delivery, built on Flutter, with rider, driver, and admin surfaces and web, iOS, and Android versions. The table maps each lesson from this guide to what the page lists and what you should still confirm.

Lesson What the page lists What to confirm
Let people set the price Riders enter pickup, drop-off, vehicle type, and a willing fare; drivers accept or counter Whether you can set fare bands and recommended prices per zone
Give drivers choice Drivers accept or decline requests, bid on fares, and set availability Whether drivers can filter out low fares
Keep the commission clear Revenue manager for earnings and commission; driver wallet, recharge, and subscriptions as add-ons Which commission model suits each market
Avoid subsidy burn Promo codes, referral program, and promotions management are available How much to switch on, since inDriver says it avoids bonuses
Build trust Driver document verification, verified profiles, SOS, and live ride sharing Local identity checks and insurance rules
Respect local rules Zone-wise extra fees, heat maps, and customization for country-specific rules Which fare rules your regulator imposes
Add services later Parcel and courier delivery, intercity rides, and other verticals are listed Which service to launch second

The page lists three packages: OyeStart at $950, OyePro at $1,650, and OyeElite at $4,500, with support periods, update periods, and white-labeling differing by package. OyeStart keeps OyeLabs branding. I would read the package table line by line, because the right tier depends on whether you need your own branding and multiple environments.

Two cautions from my own read of the page. It quotes several go-live windows, from 3 days to 10 days in different places, so get the timeline in your quotation. It also says OyeLabs has no association with inDriver or the other brands it mentions, and it does not name a payment gateway or mention right-to-left layouts, so confirm payments and Arabic support during scoping.

Mistakes to Avoid When You Copy inDriver

The easiest way to copy inDriver badly is to copy the surface. The mechanism works because several choices support each other, and removing one of them weakens the rest. These are the mistakes I would flag at the start of a scoping call for any bidding marketplace.

  • Copying the name or brand instead of building your own identity.
  • Launching in every city at once instead of proving one zone.
  • Turning on bidding without checking local fare rules.
  • Leaving out recommended-price guidance and letting bids race to the bottom.
  • Skipping driver verification to onboard faster.
  • Buying growth with discounts you cannot sustain, the pattern Hailo’s losses warn about.
  • Ignoring insurance costs, which shaped the Miami exit.

The common thread is discipline. Tomsky frames the model as fewer subsidies and more choice for the two people in the ride. A builder who keeps that discipline, and proves one city before the next, copies the part that actually mattered.

 

Founder Warning: Prove one city’s bid-to-booking rate before you spend on growth, because discounts cannot rescue a marketplace riders abandon.

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    The Bottom Line

    Hailo proved that ride-hailing could work in a regulated market, but it competed on convenience and growth spending. inDriver changed who controls the fare, kept its model lean by its founder’s account, and went to many cities instead of one hard fight. That is why the comparison matters to anyone planning a ride-hailing build.

    The lesson is not to copy a brand. Copy the mechanism and the discipline: let people set the price, protect driver choice, verify supply, respect local rules, and prove one city before the next. If you plan to build an app like inDriver, start with scope and rules, and add features only after the bidding loop converts.

    Questions Founders Ask

    What did inDriver do better than Hailo?
    inDriver let riders and drivers agree on the fare, kept commission low by its founder’s account, avoided bonuses and discounts, and spread across many cities. Hailo hailed licensed cabs at taxi fares and competed with better-funded rivals in contested markets.

    Why did Hailo disappear?
    Hailo did not simply shut down. It agreed to merge with MyTaxi in 2016, and its brand was retired. Reports point to losses, price pressure from UberX, and a costly US push as the background to that decision.

    Are inDriver and inDrive the same company?
    Yes. The company now styles its name inDrive, while many people still search for inDriver. This guide uses inDriver for that reason, and the OyeLabs product page uses it as well.

    How does an inDriver clone make money?
    Typical revenue comes from commission on each ride, driver subscriptions or wallet recharges, priority listings, and parcel fees. inDriver’s founder cites about 12% commission, but your rate should reflect your market, costs, and local rules.

    Is a bidding app legal everywhere?
    Not necessarily. The Philippine regulator suspended inDrive in January 2024 over alleged fare haggling, so rules differ by country and city. Get local legal advice on fare rules, driver licensing, and insurance before launch.

    Can an inDriver clone work in the Middle East?
    It can be configured for new markets, but check details. OyeLabs’ page says other languages can be integrated on request and does not mention right-to-left layouts, so confirm Arabic support, local payment gateways, and licensing during scoping.

    How much does an inDriver clone cost?
    OyeLabs lists packages from $950 to $4,500 for its ready-made script. A custom build costs more and depends on scope, so confirm price, timeline, and what each package includes in a written quotation.

    Sources and Editorial Notes

    Sources

    Editorial Notes

    • The company now styles its name inDrive. This guide uses inDriver, the spelling most people still search, and quotes sources that use either spelling.
    • The 12% commission, the avoidance of bonuses and discounts, and the profitability expectation are statements by inDrive’s founder as reported by Rest of World. We could not verify them independently.
    • Hailo sources differ on some dates and details, including when its North American services ended, so this guide gives no date for that exit.
    • The Philippines suspension is described as reported on January 23, 2024, and the current regulatory status in that market was not verified for this article.
    • City counts and download rankings vary by source and date. This guide uses Rest of World’s “nearly 900 cities” description.
    • Comparison table cells and canvas items marked with a dagger are our analysis, not reported facts.
    • OyeLabs product details, including features, packages, and timelines, are taken from its own inDriver clone page and are not independent evidence. Pricing and timelines are confirmed in a quotation.
    • inDriver, inDrive, Hailo, MyTaxi, FREENOW, Uber, Lyft, and Didi are referenced only to describe product categories and market context. OyeLabs has no affiliation with any of them.

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