Closure of Citimobile and Gett reorganization opens new opportunities for Yandex.Taxi

Closure of Citimobile and Gett reorganization opens new opportunities for Yandex.Taxi

Last Friday, Russian media reported that Citimobile (#2 online cab aggregator after Yandex.Taxi) was ceasing operations and that Gett was reorganizing its Russian business. Given that Citimobile occupies about 6% of the market, Gett less than 2%, and DiDi's plans for the Russian cab market are unclear, this news opens up new opportunities for Yandex.Taxi both in the regions and in major cities. Thus, we expect the Russian market of online cab aggregators to change seriously in the coming months.

The closure of Citimobile and the reorganization of Gett in Russia set the stage for a major reformatting of the Russian cab market.

Russian media reported, citing an official press release from the shareholders of Citimobile, that the cab aggregator Citimobile is ceasing operations. "Citimobil" will fully meet its obligations to its employees (1,500 people) and partners. According to Forbes, citing an unnamed source close to Citimobile, the decision was made by the company's shareholders on March 11. Prior to this, VK and Sberbank had agreed that the bank would buy the cab aggregator. However, after Lev Khasis (former senior vice president of digital business development) left Sberbank, this agreement became invalid. Presumably, the decision to close Citimobile was made by the head of VK Kirienko in order to stop the generation of losses. The exact date of Citimobile's closure is not reported.

Separately, Russian media reported last Friday, citing Gett's global office, that the company's Russian office would also be reorganized. The company will fulfill its obligations to all customers and employees. Due to the current geopolitical situation, many of Gett's corporate clients are leaving the Russian market or suspending operations, which significantly affects the company's ability to execute its strategy.

According to our estimates, the GMV of Citimobile in 2021 will be 61-63 billion rubles compared to 460-476 billion rubles of Yandex.Taxi (only in Russia), which corresponds to approximately 6% and 46% of the market of these companies respectively. Cab aggregator Gett, which specializes in providing services in the B2B segment, occupies, according to estimates, 1.5-2% of the market. Given the lack of clarity in DiDi's plans for the Russian cab market, the news about the closure of Citimobile and the reorganization of Gett point to new opportunities for Yandex.Taxi.

Photo:, Artem Geodakyan/TASS

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