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Moscow's Rideshare Business is Booming

As Moscow's Ridesharing business grows, the Russian government proposes new regulations

This post first appeared on Russia Insider

Moscow's ridesharing business is booming. This is little surprise as Moscow is Europe's largest city with over 13 million people. The Russian government is now looking into regulations for the ridesharing market to keep the growing industry under control of the people. Ridesharing and carpooling are common practices for cities to save fuel and reduce traffic jams.

The ridesharing market in Moscow is expected to grow to a massive $24 Billion by 2025. 

As BNE reports:

The total car sharing and taxi market in 2017-2025 will grow 2.5-fold to RUB1.6 trillion ($24bn) by Sberbank CIB.

Reportedly Moscow authorities plan to introduce special accreditation for carpooling platforms, set a ceiling for ride costs, only allow non-cash transactions, only allow drivers with experience of more than 3 years and without a criminal record or driving fines to register on the platforms, as well as introducing a mandatory medical check-up for drivers that accept over 20 carpooling rides per year.

Previously Moscow suffered from chronic traffic jams and the taxi services and carpooling have contributed greatly to reducing the number of cars on the road and subsequently made a big difference to improving traffic conditions.

The market leader in the segment French online car pooling service BlaBlaCar this month said it will acquire its rival in Russia BeepCar owned by internet services major Group. 

Russia's most valuable digital major Yandex also launched a car pooling service, with its pilot Yandex.

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