At the end of November 2016 an Israeli taxi service Gett received from Sberbank seven-year venture loan of $100 million with an option for their shares.
Then, the parties did not disclose details of the transaction. As told the Vice-President of Sberbank CIB Oscar Ratsin, the Bank from the data aggregator received warrants (warrant) for the shares, have the right to purchase securities at a price of recent investment round (the last for the company was raising $300 million from the automaker Volkswagen in June 2016).
According to Racine, the Bank will be able to implement the warrants in the event of a liquidity event output Gett to the exchange or sale of a significant share to a strategic investor. Typically, the owner of the warrant may obtain the difference between the indicated price of the shares and the value of securities of the company or when placing the transaction.
Razin did not disclose what the price specified in the warrant, how and on what package it is distributed. A top Manager of Sberbank CIB only noted that the ratio of the volume of funds for the purchase of shares under the warrant to the amount of investment may vary in the range of 3-30%. “We are not talking about getting shares of and participation in the management of, a financial instrument more income for the Bank accepted the risk,” explained Oscar Ratsin.
When you might be offering on the stock exchange or selling to a strategic investor, Sberbank and Gett do not predict.
The company Gettaxi was founded in 2010 (it was originally called Gettaxi). In addition to Russia, the service operates in Israel, USA and UK. By the end of 2016, the turnover Gett was about $1 billion, in one of the countries of presence the company has become profitable, said the founder of Gettaxi Dave Wiser, but did not specify which one. According to Crunchbase, during the existence of Gett attracted venture financing from nine investors for a total of $613 million
Thus, according to Visera, the company expects to cooperate with Sberbank in a number of areas. In particular, it can lend to buy a new car drivers Gett, said Weiser . “Our strategic partnership with the Volkswagen group establishes a joint program of leasing of cars for a service partner on favorable terms. Now, thanks to a partnership with the Sberbank group, we could help our drivers in obtaining a loan for a car under this program. We are talking about potentially interesting for the Bank portfolio: 100 thousand vehicles — about $1.5 billion, but one by one, with such borrowers banks are not interested to work”, — said the founder of Gettaxi. He explained that taxi drivers, as a rule, are self-employed, the turnover of the business which are small. Usually banks are willing to give them loans to purchase a car at 20%. “Our cooperation will reduce the percentage as we may act as paying agent drivers, analysis and initial verification, create for the Bank a steady stream, and quite another credit quality,” says Dave Weiser.
In addition, the Sberbank group could offer drivers insurance programs — life and vehicles, the credit for the apartment and other services, said the representative of Gett. When this can happen, the company cannot predict.
Photo: Natalia Seliverstova / RIA Novosti
Interviewed financial experts were skeptical about the idea of such partnerships. As noted by the Director of the Department of remote of car loans Loko-Bank Kirill Grigoriev, from the point of view of bankers, taxi drivers are not the best borrowers, regardless of the company they work for. “Their problem is that any, even minimal, damage to cars results in a loss of earnings and, therefore, to delay payment. To lend to the taxi drivers should only be the case if an initial contribution is at least 50%,” says Grigoriev.
A source in one of the major banks said that loans of taxi drivers partner applications such as Gettaxi, Uber, “Yandex.Taxi” is a very risky part of the banking business. Here the risks are higher than for auto loans individuals, because the business plan of the individual entrepreneur can not be calculated. “I do not think that the partnership with such companies for large credit lines may affect the reduction in the rate for them,” questioned the source .
Gett in growth
According to Vasara, using the program of preferential car loans and offers additional financial products Gett intends “to increase the loyalty of their fellow drivers.” In addition, it counts on the expertise of the Bank in terms of business development in the regions. Now the service works in over 70 cities (in 40 the company has entered over the last six months) and intends to expand its presence. “Sberbank is the largest financial business in Russia, which has vast network of branches throughout the country. It can help with the choice of settlements, logistics, and support experience,” said Wiser. In addition, according to him, Sberbank and Gett can achieve synergy in the field of mobile payments. It is as an online integration with payment system “Sberbank Online” when the passengers, who have installed the application the Bank will be able to choose a payment option a taxi, and adding the possibility of ordering a taxi from the application of the savings Bank.
According to the estimation of UBS, at the end of 2016, the volume of the Russian taxi market amounted to 526 billion rubles, and by 2021 it will rise to 1,097 trillion rubles, the Share of online orders, according to analysts, in five years will increase to 80% from the current 20%. The market leader is “Yandex.Taxi,” which in 2017 will be, according to the forecast of UBS, to occupy 60% in the segment of online orders, and by 2021 — 55%.
According to analyst FK “URALSIB” Konstantin Belova, before all the services of online taxi the challenge now is to get a critical mass of users. “These services are important economies of scale, it is important to know, are perceived as the market leader. The expansion is an attempt to take a position in a growing market, which then will give back,” said Belov. In his opinion, for successful expansion requires money and incentives to attract drivers.
Vladimir Isaev, the head a press-services “Yandex.Taxi” (operates in 69 Russian cities with population over 100 thousand people), noticed that funds for expansion are necessary, but they are not important for success. “The rate of expansion in large cities mainly depends on how smoothly and consistently work all of the team — management, marketing, Finance, IT services, legal services, etc., how scalable IT infrastructure as a whole. Output to a new city preceded by a huge preparation, starting with the primary intelligence and search for business partners (taxi companies and dispatching) and to development of tariff, selection and training of drivers. For the mass service process of launching in new cities should, in fact, be well established and continuously operating conveyor,” — said Isayev.
“Yandex.Taxi” now provides services in six countries. Russia, Ukraine, Belarus, Georgia, Armenia, Kazakhstan. The indicator separately for Russia not disclosed.
Gett helps to Sberbank in the implementation of the project on transfer of corporate motor repairing service outsourcing. During the year, employees of the savings Bank used the enterprise decision Gett, saving about 44% of the transport costs, said Weiser (absolute rate, as the cost of the savings Bank under this article is not disclosed). Savings have arisen from the lack of the need to purchase and maintain the machine in its own fleet, as well as the utilization of machines, that is efficiency. If private car use factor is about 4-5% that of a normal car taxi is about 20% of the machines, working with services like Gett, up to 50%, said Dave Weiser. The representative of Sberbank confirmed the words of Visara.
According to the representative of the service taxi “max”, the savings in such a project largely depends on how it was previously organized transport service in the company. “Corporate services — it is convenient for organizations that do not have their own fleet of vehicles or the maintenance costs exceed the limits. To work with the modern services of a taxi can actually be cheaper than having your own garage when you need to bear the expenses for purchase and repair of motor vehicles, paying a fixed salary for drivers, mechanics, regardless of their employment, to pay overtime and sick leave,” he says. However, he warns that it is likely that all who need to go, cars may not be enough and need to adjust to the schedule of others. In this case, the service will be ineffective.