Founder of Gettaxi predicted growth of prices for taxi because of the deal of “Yandex” and Uber

Because of the merger deal in Russia and some CIS countries business aggregator “Yandex.Taxi” and Uber’s prices for the services of online taxi can grow. This was written by the founder of Gettaxi Dave weißer in Facebook.

“The expected end of a price war between “Yandex” and Uber will probably lead to higher prices and return to more stable margins,” said he.

Weißer noted that “the only alternative to Yandex in the Russian market is Gettaxi. Because of this, in the future drivers will use applications from both companies, he writes.

According to the founder of Gettaxi, for customers aggregator of taxi services “the choice easier: Gett — quality drivers, “Yandex” — volume”. The share of Russian market in business Gettaxi is about 25%, added the morning.

“Yandex” and Uber announced a business combination on 13 July, the deal will affect Russia, Georgia, Kazakhstan, Azerbaijan and Armenia. The new structure will be headed by the General Director “Yandex.Taxi” Tigran khudaverdyan, 59.3% of the company will belong to “Yandex”, Uber will get to 36.6%, the remaining share will be assigned to employees. The cost of the new company is estimated at $3,725 billion the amount of investment from Uber and “Yandex” will be $225 million and $100 million respectively. Customers will be able to use any of the two applications for smartphones and tablets. In a press-service Uber RBC said that “in the moment” to raise rates in the company do not plan.

Unified platform “Yandex.Taxi” and Uber will provide 35 million trips per month, said after the announcement of the transaction Tigran khudaverdyan. As he wrote RBC in the spring of 2017 with reference to one of the market participants, Gett in 2016, providing about 150 thousand trips per day (4.5 million per month). The leader of the market the source of RBC called taxi-aggregator RuTaxi (brands, “Lucky” and “Leader”) with 1 million visits per month. On “Yandex.Taxi” Uber, according to research at UBS investment Bank, together account for 58% of downloaded apps on-demand (on demand ride, ROD) in Russia. They accounted for 40% and 18%, respectively. Third on this indicator was Gett (14%).

The main thing about the deal “Yandex” and Uber

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The Federal Antimonopoly service admitted that the transaction may lead to restriction of competition. The head of FAS Igor Artemyev said that the Agency will review the merger of the two aggregators. Artemyev said on July 13 that the notice of the transaction in the FAS did not arrive yet.