Ride hailing platform Free Now to pull plug on county operation in April
"Compensation will be offered to each person affected based on their geographical location and tenure. Free Now offers compensation that, in many cases, goes beyond legal requirements," said Free Now.
The private ride hailing transport platform Free Now will close its operation in Portugal in April “to improve efficiency and cost structure” and intends to compensate its employees in the country, advanced to Lusa.
In a message sent on Friday to its customers, Free Now said that “as of 23:59, Lisbon time, on April 3” it would close its operation in Portugal, a “difficult decision to make”.
Questioned by Lusa, the ride hailing company for passenger transport in uncharacterized vehicles advanced, from its communication in Spain, that “to put Free Now in a position of long-term success, the company seeks to increase its focus on profitability and improve its cost effectiveness.”
“The company is targeting improvements to continue its successful course towards sustainable growth, which means it has to take steps to improve efficiency and cost structure, including investment decisions in individual markets. As part of this strategic orientation, Free Now has taken the decision to cease its investment in the Portuguese market,” the platform explained to Lusa.
Indicating that the service in Portugal ends within a month, Free Now indicated in the written response sent to Lusa that it “is currently ceasing all collaborations in force”.
“All employees who worked in this particular company will be affected. We will be talking individually to outline how they will be affected and compensation will be offered to each person who is leaving,” the company explained, without specifying.
“Compensation will be offered to each person affected based on their geographical location and tenure. Free Now offers compensation that, in many cases, goes beyond legal requirements,” the company advanced.
In the message sent to customers, the platform said it was “extremely grateful for all passengers and drivers who have improved their stay in Portugal”.
Free Now is a private transport platform – competitor of companies such as Uber or Bolt – which is in more than 170 cities across Europe.
Based in Germany and with a staff of 1,850 employees, Free Now emerged after the merger of the transport applications Kapten (formerly Chauffeur Prive) and MyTaxi.