The cost of individual trips via InDrive almost tripled amid a malfunction in the operation of Yandex Go on 11 October. The Agency for the Protection and Development of Competition of Kazakhstan (AZRK) sent the service an official warning about the inadmissibility of actions that could violate antimonopoly legislation.
WHY TAXI PRICES ROSE
On 11 October, a malfunction occurred in the operation of Yandex Go in Kazakhstan, after which passengers began looking for alternative services and switching to InDrive. According to media reports, in some cases the cost of trips via the platform increased almost threefold.
In InDrive, the passenger and driver agree on the price of the trip themselves. According to the agency's assessment, the mass migration of users to the service was accompanied by a shortage of available cars, which led to a significant increase in the prices offered by drivers.
WHAT AZRK WAS NOT SATISFIED WITH
The agency drew attention to the high concentration of the taxi market in Kazakhstan, where a significant share of trips is accounted for by a limited number of large services.
The authority believes that a sharp increase in the cost of services in emergency and other unforeseen circumstances may create risks for consumers. As an additional argument, AZRK pointed to international practice, which provides mechanisms to curb sharp tariff increases in such situations.
HOW INDRIVE RESPONDED
According to AZRK, the company told the media that it had reduced its commission to the minimum level in order to stabilise the situation. In addition, the service urged drivers not to set maximum prices for trips.
Despite these measures, the agency considered it necessary to send the company an official warning about the inadmissibility of actions capable of leading to a violation of antimonopoly legislation.
WHAT THE WARNING MEANS FOR THE COMPANY
AZRK sent the document in accordance with paragraph 1 of Article 198 of the Entrepreneurial Code. According to the authority's explanation, the warning is preventive in nature: its task is to prevent possible violations of legislation and protect the interests of passengers.
CONTEXT
A series of drone attacks on Yandex's data centres in Russia led to disruptions in the operation of digital services in Kazakhstan and other countries.
Users in Kazakhstan encountered disruptions in the operation of Yandex Go, including taxi and food and goods delivery services. Drivers and couriers also experienced difficulties using the platform.
