The Agency for Protection and Development of Competition (AZRK) of Kazakhstan is currently involved in negotiations with Yandex.Taxi to potentially reduce the commission charged to drivers for using their platform. This development emerges as the agency examines the disparity between the commission rates imposed by the taxi service within Kazakhstan and those of neighboring Uzbekistan, where Yandex.Taxi charges significantly less.
Bolat Sambetov, Deputy Chairman of AZRK, addressed the matter on March 17, 2025, stating during discussions about upcoming amendments to competition laws, "We are currently studying the situation; there are proposals to establish maximum tariffs for such services. Yandex.Taxi maintains about 16% commission from each trip, and another 4% goes to taxi fleets, summing up to 20%. By comparison, the commission rate is only 13% for the service in Uzbekistan." His remarks highlight the growing concerns surrounding the profitability for drivers and competition within the market.
Yandex.Taxi's commanding presence within Kazakhstan's taxi sector is notable, with estimates showing it controls about 90% of the market share particularly in major cities like Astana and Almaty. "Yandex.Taxi is our monopolist not only in these cities – its market share keeps increasing year by year," Sambetov added, indicating the continuous rise of the company's market stakes and raising alarm on the potential for monopolistic practices.
Discussions surrounding Yandex.Taxi's pricing algorithms have also been opened, with the agency conducting audits on how prices fluctuate based on various factors, such as demand, weather, and local events. These pricing changes, termed as dynamic pricing, might create uncertainties for both consumers and drivers. Such practices have prompted regulatory scrutiny, aiming to assess whether the current commission rate is justified. "We monitor the performances of Yandex.Taxi closely. Throughout 2024, we've incorporated insights from foreign experts to evaluate its algorithmic pricing tactics," remarked Sambetov.
The regulatory agency's efforts are also reflected in its initiative to engage deputies from the Majilis, Kazakhstan's legislative body. During deliberations, suggestions were made to impose price controls on Yandex.Taxi's operations. It was indicated by one deputy, Nurtai Sabyilyanov, "We should prepare proposals to protect drivers and analyze how to regulate this monopolist. We need to process these findings swiftly. The situation demands our immediate attention.”
Anticipations around adjusting the commission structure set forth by Yandex.Taxi stem not only from the need for fairness for drivers but also to improve the overall competitive ecosystem. The disparities identified between Kazakhstan's 20% total commission and Uzbekistan's 13% have added pressure on regulators to act swiftly. Unlike the competitive and varied pricing strategies seen internationally, the relative homogeneity of Yandex.Taxi's pricing system within Kazakhstan poses challenges to fair market practices.
Sambetov voiced concerns about the economic impacts of Yandex.Taxi's pricing policies, stating, "Besides the company itself, approximately 300,000 drivers and their families are involved, totaling around 1.5 million people relying on this service. We must tread carefully and understand the impact on their livelihoods." This remark underlines the vast interconnected web of economic stability related to the taxi service and emphasizes the need for balanced regulatory action.
Previously, discussions hinting at revising Yandex.Taxi's commission were instigated by various stakeholders, including government officials. For example, during late 2023, Bagtat Musin, the former Minister of Digital Development, indicated potential regulatory steps might be necessary if competitive challenges were not swiftly met. He expressed, "If we can’t get back the Chinese taxi aggregator Didi, which started operations and ended them prematurely, we should officially recognize Yandex.Taxi as monopolistic and start regulating their rates accordingly."
With the demands for regulatory reform growing, it remains to be seen how the AZRK will proceed with its findings and negotiations. The agency has not made definitive conclusions yet, stating, "We continue to analyze the situation, ensuring all relevant options would be carefully considered. We aim to take appropriate measures soon. Initial steps are under discussion, but concrete actions will depend on our findings." This proactive stance indicates the authorities' commitment to ensuring fair practices within the taxi sector.
While discussions concerning the rate adjustments continue, the fate of Yandex.Taxi’s commission structure hangs in the balance. The outcome of these negotiations not only stands to affect the drivers and their incomes but could also reshape the competitive dynamics within the taxi service market across Kazakhstan. Regulatory actions, if enacted, promise to be closely watched by stakeholders and could signal significant shifts for service providers and users alike.