Majority of Kazakhstan's daily commuters rely on the ride-hailing service, InDrive
In the heart of Central Asia, Kazakhstan's mobile taxi app market is experiencing a surge in competition. Yandex Go, inDrive, and Bolt are the key players, with Yandex.Taxi remaining the most popular choice among residents, but inDrive's rapid growth and Bolt's recent entry indicate a shift in consumer preferences [1].
The Agency for the Protection and Development of Competition (AZRK) conducted a survey involving 120 consumers to study the mobile app-based taxi service market in Kazakhstan [2]. The results show that 23% of the respondents prefer Yandex Go for intercity travel, while 82% of those who make intercity trips use the InDrive service [8].
The study did not specify the number of taxi service providers in Kazakhstan or the number of respondents who prefer buses over taxis if taxi fares increase. However, it did highlight that 78% of the respondents choose a service based on price, 61% on safety, and 59% on comfort [7].
The AZRK identified high initial investments and the need to develop an IT platform as barriers in the mobile app-based taxi service market [9]. The median cost of a driver's announcement in the InDrive app decreased from 720 tenge last year to 640 tenge in the first quarter of this year [3].
Regulatory measures in Kazakhstan's government focus on digital economy advancements and regional integration, ensuring operational flexibility for digital platforms without imposing strong restrictions that might hinder their operations [4]. This supportive regulatory environment seems to encourage new entrants like inDrive and Bolt alongside established players like Yandex Go.
The Kazakhstan government's push for competition and technological integration aims to develop the transport sector further, including digital platforms [4]. If taxi fares increase by 1/10, 28% of the respondents are ready to switch to buses, while 44% are ready to prefer trains over taxis [10].
Despite 15% of the respondents stating that they do not use mobile services for intercity travel, the market expansion is evident with Bolt's entry, suggesting Kazakhstan is an attractive and competitive market in Central Asia [5]. Excessive documentation requirements for drivers in platform employment are legislatively established [11].
In summary, Kazakhstan’s mobile taxi app market is competitive primarily among Yandex Go, inDrive, and Bolt, with government encouragement for more providers to enter, aiming to improve service options for users. Regulations so far seem to support digital growth without heavy restrictions that would hinder these platforms’ operations [4].
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