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 that 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 state that Free Now Ireland has 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 three fold from €6.4m to €17.8m.
The directors say that they expect 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 5 seats or more will cost an extra €3, as well as Free Now’s "Reserve Fleet", which are taxis with 4-8 seats.
A premium vehicle will have a €5 technology fee.
In their report, the directors state that the business has started a trial with an electric scooter provider in Dublin in order to accompany the ongoing change within the mobility market.
They state that this is supported by Irish Government legislation passed in October 2021.
They say that to ensure a future proof business, the directors will continue to invest in their mobility partners and support electric vehicles among drivers in the coming years.
The company changed its name from Mytaxi Network Ireland Ltd to Free Now Ireland Ltd from February 7 in 2022.
At the end of December 2021, the firm's shareholder funds stood at €11.46m that included accumulated profits of €2.09m.
The company’s cash funds more than doubled from €6.06m to €14m
The business - which is owned by German based company, Intelligent Apps GmbH - in 2021 reduced numbers employed from 34 to 30 and staff costs increased from €1.96m to €2.1m.
On risks faced by the company, the directors state that "while we maintain the view that licensed taxi will always remain a core aspect of our business, we look to complement that supply with alternative vehicle classes where and when we deem it necessary, driven by demand from new customer segments, such as the corporate market".
The directors also claim that if taxi drivers’ acceptance rates of Free Now jobs drop significantly, there is a risk of adverse customer experience that could ultimately lead to some customers using the service less frequently.
They state that the firm regularly innovates the driver application to increase its functionality and relevance to the driver community and also seek to incentivise drivers and increase their acceptance rates.
