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Russian ride-hailing firm challenges Uber in Dubai

NICOLAS PARASIE ALEXANDER SAZONOV

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% and 8% 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.

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 companies 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 the Guy Ritchie film 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 is growing at an average of about 20% every week, and that the firm is planning to expand in Dubai to meet demand from tourists.

BUSINESS WORLD

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2023-06-02T07:00:00.0000000Z

2023-06-02T07:00:00.0000000Z

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