Bewdy, there's some turbulence surrounding Arsen Tomsky's drive in Kazakhstan.
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InDrive, the global ride-hailing aggregator, is facing challenges in Kazakhstan, where it once led the urban rides segment. According to a report by the Kazakhstani publication "Kursiv", the company's market share has decreased significantly over the past year.
The decline can be attributed to several factors. One of the key issues is the competition with Yandex, a highly established player in the CIS region, including Kazakhstan. Yandex's integration with Yandex services, substantial resources, and technology give it an edge over inDrive, making it the market leader with a share of 59%.
Another challenge for inDrive is the dissatisfaction among its drivers. Strikes over fuel costs, commissions, and platform support indicate operational challenges that could similarly affect the service in other markets, such as Nigeria, where top drivers earn less than competitors like Bolt.
The urban rides segment market share of inDrive in Kazakhstan has dropped from 23.9% to 18.9% over the past year. Another Kazakh company based in Karaganda, Region, has gained territory from inDrive in the urban rides segment. Regions like Abay, Atyrau, Mangystau, Pavlodar, and Turkestan, where inDrive led the urban rides segment in 2023, have now been taken over by Yandex.
Kazakhstani businessman Arsen Tomsky, the owner of inDrive, has been summoned by the Ministry of Transport of the Republic of Kazakhstan and told to comply with new safety requirements for taxi services. These requirements include pre-trip medical examinations for drivers and twice-yearly technical inspections for vehicles.
In April, inDrive was involved in a high-profile scandal involving the murder of Saltanat Nukenova. The victim's relatives accused InDrive of grossly violating constitutional rights by providing data about Nukenova's movements to a third party, former minister Kuanyshbek Biishimbayev. Providing data about trips with addresses was deemed a terrible violation of the law.
Despite these challenges, inDrive continues to emphasize fair pricing and driver partnership principles globally. However, no new funding or strategic shifts for inDrive focused on Kazakhstan were found in the results. As of January 1, 2025, previously registered "right-hand drive" drivers will be excluded from the inDrive service.
While inDrive remains operational and competitive, especially in emerging markets, it faces growing challenges in Kazakhstan, such as lower driver earnings, driver strikes, and stiff competition from established players like Yandex. Specific local market data for Kazakhstan would be needed for a more precise assessment.
- InDrive's financial trajectory in the Kazakhstan business sector may be adversely impacted by reduction in market share, driver dissatisfaction, and intense competition from established players like Yandex, particularly in the sports of urban rides.
- The decline in inDrive's dominance of the urban rides segment in sports and finance could have ripple effects, as similar challenges emerge in other markets, such as Nigeria, where competitors offer more attractive earnings for drivers.
