Russian-origin ride hailing firm competes with Uber in Dubai

A ride-hailing firm with Russian origins has nabbed a significant chunk of the market from Uber Technologies Inc. and its local subsidiary in Dubai, a city that’s attracted thousands of Russians since the invasion of Ukraine last year.

Yango, a unit of internet giant Yandex NV, now accounts for between 4 percent and 8 percent of all ride-hailing journeys in Dubai after starting operations in the Gulf city in September, according to people with knowledge of the matter, asking not to be identified because the matter is private.

For all the latest headlines follow our Google News channel online or via the app.

The company has been recruiting dozens of employees across the region and now employs a number of former staff from rivals Careem Inc. and SWVL, a ride-sharing company for buses, according to LinkedIn.

The United Arab Emirates has seen an influx of Russian businesses, commodity traders and expats seeking a haven from sanctions over Moscow’s invasion of Ukraine in February 2022. That’s helped sustain local property and hospitality markets, and boosted businesses like Yango.

Still, while Russian residents and tourists were initially its biggest users, others — including Russian-speaking nationalities — have since flocked to the app, attracted by a series of promotions. The firm last month launched a courier service to rival local delivery firms such as Aramex PJSC and iMile Delivery LLC.

Yango has embarked on an aggressive promotional campaign across Dubai. A huge red billboard advertising Yango for months dominated one section of the city’s main highway. In January, its logo was emblazoned across the world’s tallest building, the Burj Khalifa, during the premiere of one of Guy Ritchie’s films, Operation Fortune.

In an interview with Dubai’s Al Bayan newspaper this month, the company’s regional general manager, Islam Abdul Karim, said the number of Yango trips are growing at an average of about 20 percent every week, and that the firm is planning to expand in Dubai to meet demand from tourists.

The Middle Eastern business hub is home to more than 3 million residents who mainly rely on cars and taxi services, especially in the summer when temperatures can reach 50C (122F). The city is the regional headquarters for Uber and Careem, which it acquired in 2020.

A representative for Uber said the UAE is one of its key markets and that it welcomes the competition. Ashish Labroo, vice president of ride hailing at Careem, said its business is growing and the firm also welcomes new players in the market. A representative for Yango declined to comment.

Yango operates in eight countries and is seeking to expand across the Middle East, as well as in Africa and Latin America. The company recently started testing services in nine new markets, including Guatemala, Peru, Namibia, Mozambique and Algeria.

In 2017, San Francisco-based Uber and Yandex merged their businesses in Russia following a costly battles between the two firms. Those ties ended last month when Yandex bought out Uber’s remaining share for $702.5 million.

Read more:

Russian food retailer Vkusvill launches sales in Dubai

UAE considering options on Russian bank MTS hit by new sanctions over Ukraine war

GCC gears up as Australia, N.Zealand sheep export bans shake regional food security