Skip to content

July 13, 2017

Uber’s answer to ride-sharing in Russia is a merger

by John_A

Uber and Yandex, the ‘Google of Russia’, have agreed to combine their Russian ride-sharing businesses. The move further heralds the slowdown of Uber’s global expansion, while it bolsters Yandex’s position in its field: the company has invested $100 million into the venture compared to Uber’s $225 million, but will own 59.3 percent. Yandex.Taxi chief executive Tigran Khudaverdyan will become the CEO of the combined business.

Both companies will work together to provide ride-hailing and food delivery services in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan. Customers can complete their transactions using either the Uber or Yandex app, while driver apps are set to be integrated once the merger is complete at the end of the year.

The deal seems to benefit both parties. Yandex is eliminating a potentially aggressive competitor, while Uber gets the support it needs to continue its operations in Russia following months of legal setbacks and driver protests. However, the San Francisco company struck a similar deal with rival Didi Chuxing in China last year, only to withdraw from the country completely a few months later. Plus the new company is up against fierce competition from the likes of Fasten/Rutaxi, Maxim and Gett, the Israeli startup backed by German automaker Volkswagen. But with Yandex and Uber together performing over 35 million rides a month while growing over 400% year-over-year, the proposed unison does seem strong enough to keep Uber on Russian roads for now.

Via: Reuters

Source: Uber

Advertisements
Read more from News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: