Russian taxi market seen growing 6% to $11bn in 2019

Russian taxi market seen growing 6% to $11bn in 2019
Russia's entire urban transportation market (taxi, carsharing, carpooling, etc) could reach RUB2 trillion ($32bn) by 2025.
By bne IntelliNews October 9, 2019

Russian taxi market is expected to grow by 5.6% to RUB709bn ($11bn) in 2019, RBC business portal reported on October 8 citing the governmental Analytic Centre.
 
As reported by bne IntelliNews, the competition in the digital transportation solutions market toughened as Russia's largest bank Sberbank recently set up a joint venture with Yandex’s largest rival Mail.ru. Yandex.Taxi is still a market leader and is reportedly preparing for an IPO and strengthening its foodtech services.

But the sharp growth phase that was provoked by the entry of taxi aggregators through lower prices and more passengers is waning, the study warns. The growth pace of the market is seen declining from 8.6% in 2018 to 3.7%-4% next year, stabilising in the longer term at about 2%.

The study also estimates that the value of illegal taxi drivers stands at about RUB100bn, up by 6.3% as compared to 2018. In some regions up to 50% of all paid rides are delivered by unlicensed drivers. Obtaining a licence to drive a taxi is not mandatory, but the police are increasingly fining drivers without licenses.

In 2019 taxi aggregators are seen taking about 60% of the taxi market, with Yandex.Taxi being the market leader with 27% share. Vezet, recently acquired by Yandex, takes another 12%. Maksim taxi accounts for 9%, Gett for 5% and 1% for Citimobil.

Representatives of Yandex.Taxi argued to RBC that the market will maintain faster growth than that estimated in the survey due to even deeper market penetration and legalisation of unlicensed drivers.

Sberbank previously estimated that the value of the entire urban transportation market (taxi, carsharing, carpooling, etc) could reach RUB2 trillion by 2025, growing by an average of 15% from RUB748bn seen in 2018.

 

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