Russia: Uber is overpowered by Yandex image

Yandex NV is mostly famous in Russia, where the Internet search provider has managed to keep a lead on Google Inc., and is now expanding successfully into the car-sharing market where it fends off with Uber Technologies.

Yandex’s online-hailing application in Moscow alone has at least 15, 000 taxis connected, according to estimate figures provided by the city’s Chamber of Commerce. Meanwhile, Uber – the most famous and successful car-hailing business provider in the world – only has around 3,000 cars in its service. Yandex, which mostly receives its cab profit from the capital, plans to fend off Uber’s advancement by surging in coverage to 25 Russian cities by 2016, according to the division’s chief Tigran Khudaverdyan. “Online services have made competition in the taxi market more transparent, leading to lower prices and sharp growth in the number of rides per person,” commented Khudaverdyan in a recent interview with Bloomberg. “For a third consecutive quarter, our taxi revenue is growing faster than we could’ve expected.” Though expenses in the sector have been impacted by Russia’s economic troubles, Moscow has a 0 billion-ruble ($1 billion) taxi market that has not been hurt so much as increased online services competition has made rides more affordable and thus lured in more customers.

Uber, also present in St. Petersburg and Ekaterinburg is also behind Gett, a startup of Israeli businessman Shahar Waiser, which comes second in Moscow with at least 10,000 vehicles. Moscow’s officials have asked online-taxi services to use only licensed drivers and have been driving unlicensed cabs to gain permits. These – unlike in other cities in Europe – are free and allow the drivers to use certain lanes and park in special taxi lots.

Via Bloomberg