Update: As of Friday, Sept. 8, Taxify had temporarily stopped its service while London’s transport authority investigates the company’s legal position.

It’s early days for Estonian ride-hailing startup Taxify OÜ, but it has just moved into its second major western European market and is severely undercutting its main rival, Uber Technologies Inc.

Started by then-19-year old Markus Villig (pictured) in 2013, Taxify now operates in 26 cities across Europe, Africa, the Middle East and Mexico. The company launched in London today after having 3,000 vetted drivers sign up.

Taxify joins an already crowded market in London, competing not only with Uber’s 40,000 drivers and 3 million customers, but also the city’s iconic black cabs and a number of other ride-hailing services that have popped up in London recently.

Taxify, recently backed by Chinese ride-hailing giant Didi Chuxing, offers two notable bonuses for Londoners: It’s  cheaper to use and drivers should earn more. In September the company will offer a 50 percent discount on all rides, but it also said it can keep prices lower than its competitors.

The company will only take 15 percent commission from its drivers, compared with the 20 to 25 percent Uber takes. “The lower commission allows Taxify to offer lower prices for riders and more take-home pay for drivers,” Taxify said in a statement. “The service also allows drivers to create a defined radius for pickups, meaning they don’t need to stray too far from home.”

It also allows users to pay with cash, unlike Uber, or with a with a preregistered bank card. Villig has said he believes his relatively small company has every chance to take on Uber, explaining in interviews that with only $2.38 million in funding, it’s under little pressure to turn a profit for its investors and can price out competitors.

In an interview with Business Insider, Villig said Taxify had already been successful in 19 countries and he sees no reason why London won’t be a success. “We’ve seen that in the long term, these lower prices make sense,” he said. “And in the long term if drivers are happy, there’s a better customer experience and it leads to us having a higher customer retention.”

Image: Taxify