INVC NEWS
Russia Car Rental market by type (Chauffer driven car rental and taxi service, app based cab aggregator and self driven car rental), by region (Moscow Region, St. Petersburg Region, Cities with Population more than 1 million, Cities with Population Between 0.5-1 Million and Others), by on- airport and off airport. App based taxi aggregator by type of car (budget, comfort and executive). Self drive car rental by type of booking (online and offline), by type of demand (Business, Leisure and Insurance replacement). Company Profile of Major players in Chauffer driven car rental (Lingotaxi, logitaxi, Kiwitaxi, Maxim, Vezyot, Citymobil), Self drive car rental company (Hertz, Avis, Europcar, Sixt, EleksPolys, Delimobil, Belka car and Other), App Based Cab aggregator (Yandex, Gett, Altocar, Indrive, and Wheely)
· App based Taxi Service market is expected to witness consolidation with dispatcher and independent taxi companies coming under its gambit
· Internet based services in taxi hailing, ride sharing, and car rental is expected to gain sufficient boost with major portion of business coming through online booking.
· Driverless cars, Karshering, Car pooling, use of electric vehicles and bike rental are some key segments that have potential to disrupt the market in future.
App based taxi growth will be mainly driven by rise in fare prices of taxi, conversion of dispatcher business into app based business and growing penetration of internet and smart phones. Increased competition from new players entering the market as well as fast changing technology is expected to further disrupt the market. Long term and short term rental car market will largely be able to retain their market. However it is expected that majority of the transactions will move online. Majority of the dispatcher service business will be converted into app based cab booking service.
Market will be driven by improved services, traffic conditions, internet penetration and falling cost of internet and smart phones. Improving technology and added features in phone will further promote use of technology for booking, navigation, payments and others.
Analysts at Ken Research in their latest publication “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” believe that promoting better regulations, involving participation of taxi association while formulating laws and ensuring strict implementation of rules will aid the taxi market. R&D in developing better navigation system and remotely unlocking a car for connecting car and customer will have positive impact on market.
Russia car rental market is expected to register positive CAGR of around 9% during the period 2017-2022. Commitment to regularize market, transparent pricing and technological knowhow along with improving market consolidation are expected to have positive impact on the demand for taxi and related services.
