Cars are amidst the mass takeover of Moscow.
In a notable expansion, the taxi aggregator "X-Car" has announced its debut in Moscow, the capital city's competitive ride-hailing market. The company aims to invest over 1 billion rubles in this venture, with a goal of capturing up to 20% of the market share by the end of 2025, as per the company's founder, Maxim Imeninnik.
Initially, the service plans to connect 50,000 drivers, expanding this number to 200,000 drivers by the end of 2025. The company aims to attract 1 million passengers in Moscow and the Moscow Oblast region. The service has been operational on the Russian market since July 2022, already present in 14 Russian subjects.
Currently, the Moscow market is dominated by "Yandex Go," which holds a 96% share of the mobile app-based taxi service market in the city, according to the city's transport department. Yandex declined to comment on this development. Previous attempts by Chinese DiDi and Yakutsk-based inDriver to challenge Yandex Go have been unsuccessful.
According to experts, X-Car's expansion will introduce a new competitive player in a market traditionally shared with Yandex Go and informal "gypsy-cabs" that remain prevalent despite regulated taxis. X-Car's lower commission structure, offering rates as low as 5-6%, could attract drivers away from Yandex Go, which charges 22-24% in the "economy" tariff and up to 27% in "comfort."
Moscow's taxi market shows stable demand, with an increase of 5% year-on-year in the number of taxi trips in the city from January to March 2025, while the national figure decreased by 2%. Fares are also rising more rapidly in Moscow compared to the national average. The average check for taxi services in Moscow for the first quarter of 2025 increased by 8% to 825 rubles, while the national average increased by 7% to 616 rubles.
The balance of power in the aggregator segment may not change significantly in the near future, according to Natalya Lozinskaya, executive director of the National Taxi Council. Despite this, the entry of X-Car will likely intensify competition, pressuring Yandex Go to possibly revise its commission structure, improve service quality, or enhance promotional activity to maintain its market share. The taxi market in Russia is increasingly favorable for domestic players that combine local adaptability with substantial investment.
In the bid to establish a strong presence in the competitive Russian market, X-Car plans to invest a significant amount in finance, with an aim to capture a substantial portion of the market share, particularly in Moscow's ride-hailing industry. With plans to attract 1 million passengers and connect up to 200,000 drivers, X-Car's lower commission structure could potentially pose a challenge to the dominance of Yandex Go in the market, thereby stirring competition within the business sector.
