Mobio Talks with Daniel Shuleiko (Yandex.Taxi) on merging with Uber, taxi market and competition

    As part of the Mobio Talks project, Alexey Pisarevsky, the founder of the Getloyal company, interviewed Daniel Shuleiko, managing director of Yandex.Taxi.

    In an interview discussed:

    - the merger of Yandex.Taxi and Uber;
    - change in the processes after the integration of companies;
    - prospects for Uber.Eats and Yandex.Food;
    - Taxi aggregator and car sharing market;
    - competition aggregators;
    - Career in Yandex;
    - speech at the Epic Growth Conference about raising factors on prices and limited resources;
    - and much more.

    See the full issue on the Mobio Talks channel or read the transcript in The Secret of the Firm. Below we publish an abbreviated version.

    About merging with Uber

    - How did technically merge with Uber? I read that Uber employees left the office on Friday evening, and on Monday morning they were already in the Yandex office.

    - It was a special operation that was made by the HR team. It is wrong to say: “we left on Friday and came to a new office on Monday”. That’s exactly what happened on Day X, but before that there was a huge amount of work that three teams had to do: the Yandex.Taxi team, the Uber team and the team we called Clean team. She had more access to the data, they communicated with both parties. Why did you need a separate team? Because of the regulation: until the moment of the final closing of the transaction, we could not fully communicate with each other, because we formally remained competitors.

    - What has changed in the processes after the merger with Uber?

    - There are more of us. It was important not to lose the cool things that the guys from Uber were able to do, because in many things they, of course, were much more successful than the Yandex.Taxi teams. They did something that didn't work out for us.

    If we talk about marketing in Uber, then this is work with sports clubs; in Uber, it is much better debugged than ours. They had a good contract with the Spartak team, a good start with the Zenit sports club, it was important not to lose.

    In the operations unit, which is associated with working with drivers, there was also a difference in the approaches. But integration is not over yet, two important milestones have not yet been passed. First, we want drivers to work under a single technological platform, so that they have one application for working with orders, and there would be two left for passengers, as the tariffs and pricing are different.

    - This will be the application "Yandex"?

    - This is the application "Taximeter". Not the fact that it will be so called in the future. This is the first milestone. The second milestone is what we call roaming. We want a person from Russia to come to Paris or any city where there is no Yandex.Taxi and, through the application Yandex.Taxi, call a car that works in the Uber system.

    - As I understand it, until I can order a Uber machine through the Yandex.Taxi application?

    - For users, there will be two applications. Moreover, different people deal with tariff setting and other functions related to the client application. Imagine that you have to do advertising for Uber, and also advertising for Yandex.Taxi. This is such a split personality, it is difficult to keep in one head. Therefore, people will act separately, they will have separate budgets for advertising.

    - What is the union then, if both the marketing and the platforms will still be different?

    - Our service is about density. The denser the orders, the better for drivers. The more drivers, the shorter the serving time. And so the density of the machines in the system is very important. This is the first. The second: the union is that the two strong teams now compete not with each other, but with the market. They make the market better, they increase it, in some places they grow, in some places they just bring it to a more modern form, translating orders “from the phone” when a person dials a taxi and speaks to the operator, or orders “from the hand” when you just go outside , raised his hand and the car stopped. If you recall Moscow 5-7 years ago, then most people used to catch cars.

    - What will happen to the traditional taxi market or orders from the hand? He still holds a large share.

    - It all depends on geography, but in general the order by phone, the order from the hand is still quite popular in Russia. Researchers say they still account for more than 70% of the market. In Moscow, of course, less, but still present.

    Read the full transcript in the Secret Firm.

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