Legalized taxi services and availability of convenient services for all type of clients will drive the demand for taxi and self drive car rental in future and are expected to undergo substantial technology disruption in terms of driverless car, connected car, remote monitoring and improved navigation.
Car rental market in Russia is moving towards the organized sector with increasing participation of drivers opting for registered taxis and permits. New regulations coming into force and competition with existing players further make the working of illegal taxis more difficult. Post 2014, using a taxi in Moscow has become cheaper and the estimated average waiting time is reduced to seven minutes in 2017. The market is on the continuous growth path registering a positive growth. Last two years (2015-2017) saw a stiff price war between app based cab aggregator which affected the fares in overall taxi market. More companies started adopting the internet facility to facilitate cab booking.
Growth in number of internet users and smartphone users had been significant in the last five years. As smart phone users increases, the type of services on offer is also changing which was evident from increased investment in app based taxi companies and self drive car rental where user can take a car for ride on per minute basis. Cars are made available across the city and one can use it after registration with the company. Falling price of ride due to price war among leading players, better cars and bargain free transparent pricing drove the market during the period of estimation. Number of people using app based booking is more in Moscow and other large cities and is expected to be the main link for connecting the cars to the customer. Poor traffic management had been the key hurdle for use of taxis and cars especially in Moscow which is the largest market.
According to Ken Research report titled “Russia Car Rental Market by Type (App Based Taxi Aggregator, Self Drive Rental Car, Chauffer Driven Rental and Taxi Services), and by Off-Airport On-Airport Outlook To 2022” app based self drive car rental booking, shift of dispatcher services to online and app mode will be the key growth catalyst in future.
For more information on the research report, refer to below link:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/russia-car-rental-market/142799-100.html
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