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MegaFon, Mail.Ru Group Invest in Moscow-based Ride-Hailing Company

MegaFon, Mail.Ru Group Invest in Moscow-based Ride-Hailing Company Image Credit: City-Mobil

MegaFon, a pan-Russian provider of digital opportunities announces its intention to enter the Moscow online taxi market.

MegaLabs, the Company’s wholly owned subsidiary and the developer of MegaFon’s value added and digital services, is acquiring a minority stake in City-Mobil, a Moscow-based ride-hailing company and participating in the investment round.

City-Mobil, a taxi aggregator, is closing an investment round in the total amount of US$ 35 million.

Along with other investors, including Mail.Ru Group, MegaFon will participate in this round through the purchase of shares from existing shareholders, as well as acquisition of new shares. MegaFon’s total investment in this project will amount to approximately US$ 14 million with the resulting ownership of up to 31%. MegaFon will not consolidate this stake.

CityMobil started as an off-line conventional Moscow taxi operator. Recently the company re-shaped its business model and moved online with over 65% of rides now being booked through a proprietary app.

Gevork Vermishyan, Executive Director, MegaFon
As a further step in the implementation of the Company’s digital strategy, we aim to expand the ecosystem of our digital services and products, and to create opportunities for our subscribers to explore new customer experiences. 

Aram Arakelyan, founder and CEO, City-Mobil 
We are excited with the entry of such investors and very motivated by this trust. Vast expertise in online marketing, client service, operations and many other areas that our new investors may bring will give us a lot of support in our quest for building a new big national player.

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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