Mobile commerce deal between VeriFone and the Taxicab Commission goes sour
VeriFone, a leading developer of point-of-sale technologies, has been making strong progress in the field of mobile commerce recently. The company has seen the demand for mobile point-of-sale systems grow in recent years and has been working to accommodate the needs of its customers, many of whom have shown aggressive interest in mobile payments. VeriFone recently entered into a deal with the Taxicab Commission of Washington D.C. The partnership had started relatively well, but soon encountered significant problems that eventually lead to significant turbulence.
Mobile commerce is growing in popularity, but problems still exist
While mobile commerce is one of the fastest growing industries in the world, not all of the news that comes from this field can be good all the time. The partnership between VeriFone and the Taxicab Commission is one example of this and the partnership may serve as an example of the perils that exist in the mobile commerce field. Due to the relative youth of mobile commerce, the challenges that companies face in this field are still somewhat unknown and partnerships that run into these challenges may be able to provide some degree of insight on how such challenges can be overcome or avoided altogether.
Partnership had sought to bring mobile commerce into taxi transportation
The partnership between VeriFone and the Taxicab Commission was meant to install smart meters into the cabs that operate in Washington D.C. These smart meters would facilitate mobile payments, allowing consumers to pay cab fares with their mobile devices rather than traditional forms of currency. The adoption of smart meters was considered a good business move due to the growing number of consumers that are becoming more reliant on their smartphones and tablets. The Taxicab Commission had initially been enthusiastic regarding the partnership, but quickly sought to back away from the deal it had made with VeriFone.
VeriFone notes strong interest in mobile commerce field remains clear among many companies
VeriFone is now claiming that the Taxicab Commission owes the company as much as $18.5 million. Most of these expenses come from cancellation fees that had been negotiated prior to the finalization of the partnership between the two companies. While the partnership between the two companies has fallen through, VeriFone notes that mobile commerce is still a field where many merchants and other businesses are showing a great deal of interest.