Digital services in Russia - statistics & facts
The digital services industry plays a significant role in the development of e-commerce in Russia. It comprises various services offered on the internet, such as payments, food delivery, ride-hailing, e-travel, e-learning, digital health, online dating, e-ticketing, and others. The sixth-leading country by smartphone users, Russia offers a wide range of opportunities for businesses to reach consumers online. In 2021, the combined revenue of digital services, internet finance, and e-travel exceeded 7.2 trillion Russian rubles.
Like many other industries, digital services are undergoing transformation due to the exodus of Western companies from Russia in response to the war in Ukraine. The e-travel segment was particularly impacted by the market exit of Booking.com, which was estimated to have occupied 80 percent of the online hotel booking market revenue in the country before the invasion. Furthermore, key digital payment providers, such as Apple Pay and PayPal, suspended operations in Russia.
The Russian digital services market continues expanding, given a high internet penetration and numerous domestic ecosystems that have already gained a loyal audience. In line with this development, the number of e-services users is expected to grow in various segments.
Key market segments
Most online services boomed during the COVID-19 pandemic in Russia, in particular, food delivery, online education, and e-government. Digital payments and banking, which had already been widely used prior to the pandemic, continued to rise. Furthermore, the lockdown sparked interest in telemedicine, leading to the number of remote consultations to exceed six million in 2023. Even though eight out of ten Russians were ready to try out online consultations with doctors, only 17 percent tried them out. Another growing segment was dating services, used by over 12 million Russians.Like many other industries, digital services are undergoing transformation due to the exodus of Western companies from Russia in response to the war in Ukraine. The e-travel segment was particularly impacted by the market exit of Booking.com, which was estimated to have occupied 80 percent of the online hotel booking market revenue in the country before the invasion. Furthermore, key digital payment providers, such as Apple Pay and PayPal, suspended operations in Russia.
Digital ecosystems in Russia
Combining several digital services under one pillar, or ecosystem, is becoming a common practice in Russia. Consumers of major ecosystems, such as Sber, VK, Yandex, and Tinkoff, can subscribe to a bundle of different products instead of paying for each service separately. The revenue from ecosystem subscriptions in Russia was measured at over 58 billion Russian rubles in 2022. Furthermore, the companies introduce super apps, or mobile apps that offer more than one service on one platform. Examples include Yandex.Go, which combines delivery and taxi ordering, and Tinkoff, which offers both banking and lifestyle services.The Russian digital services market continues expanding, given a high internet penetration and numerous domestic ecosystems that have already gained a loyal audience. In line with this development, the number of e-services users is expected to grow in various segments.
