This is how Uber and Yandex are taking over Russian Federation right now

Dmitriy Serebriakov  TASS
Dmitriy Serebriakov TASS
Author

14 July, 2017

Here's a bolt out of the blue: Uber is partnering with Yandex, the Google of Russia, to launch a new standalone company that merges their respective ridesharing services to target Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia. He said Uber is investing $225 million cash in the new company and its 36.6% ownership stake will be worth nearly $1.4 billion; the San Francisco-based company will fill three of the seven seats on the new company's board.

Of course this success would not have been possible without our incredible team in the region and I am pleased to say that as part of today's agreement all full time Uber employees in the countries involved will be part of the new company. The remaining 4.1 percent will be held by employees. At the same time, Yandex will contribute $100 million, and will own 59.3 percent of the company.

"Partnership with Uber will help us broaden the quality of our service and the geographic scope of our business", says Tigran Khudaverdian, the director of Yandex.Taxi, director of the joint venture.

In 2016, Uber realized that it was outmatched by its rival in China, where it spent billions in rider subsidies trying to gain its foothold against rival Didi Chuxing.

More news: Sore hip rules Andy Murray out of Wimbledon warm up at Hurlingham

Below is an email sent today to Uber employees from Pierre-Dimitri Gore-Coty, head of Uber's business in Europe, the Middle East and Africa.

The Russian company Yandex and Uber unite business taxi. The UberEATS food delivery service is also included in the deal. Uber retains a 17.7 percent stake in the company.

Is ride-sharing giant Uber giving up on its China dream? Didi took over the whole business including the platform and rider and driver base. The two companies together predict that they will be offering 35 million rides per month across these countries. The more modest nature of this latest tie-up with Yandex reflects the smaller market, but it also goes some way toward improving Uber's balance sheet. The San Francisco based company is known for being aggressive in its approach to entering new global markets and will end the costly battle that the two firms have seen drag on for more than three years since the arrival of Uber in Russian Federation. Once that happens, they plan to integrate their driver apps. The new company will be called "NewCo" and operate in 127 cities.


More news


  • Porte crashes out of Tour de France

    Porte crashes out of Tour de France

    He won stage one of this year's race and wore the leader's yellow jersey until Froome took it after stage five. BMC sports director Fabio Baldpate said Porte had remained conscious throughout.
    J&K: Curfew brings normal life to standstill in valley

    J&K: Curfew brings normal life to standstill in valley

    Moreover, all roads leading to Wani's hometown in Tral area of south Kashmir were blocked ahead of the anniversary. Almost 20 persons, including five women, were injured when forces fired pellets at protesters in areas of Shopian.
    Tim Hardaway Jr. back with Knicks after Hawks pass on matching offer

    Tim Hardaway Jr. back with Knicks after Hawks pass on matching offer

    The Atlanta Hawks will not match the New York Knicks' massive four-year, $71 million contract offer to Tim Hardaway Jr . With Hardaway Jr. now officially back in the orange and blue, Knicks fans are left to ponder what the signing entails.
  • Dead, at Least 6 Injured in Ohio Gender Reveal Party Shooting

    Dead, at Least 6 Injured in Ohio Gender Reveal Party Shooting

    The suburban police department asked Cincinnati Police crime scene investigators help them process the scene of the shooting. The pregnant woman tells WXIX-TV she lost her baby after being shot in the leg in Colerain Township, near Cincinnati.
    Peter Sagan elbows Mark Cavendish, booted from Tour De France

    Peter Sagan elbows Mark Cavendish, booted from Tour De France

    Australia's Michael Matthews was in the bunch finish as well and finished the stage in seventh place. Cavendish: I get on with Peter but I'm not a fan of him putting in the elbow like that.
    California Right-to-Die Law Saw 111 People Kill Themselves in First Six Months

    California Right-to-Die Law Saw 111 People Kill Themselves in First Six Months

    The California Department of Public Health (CDPH) released the 2016 End of Life Option Act (Act) first Annual Report. OR was the first state to enact " right-to-die " legislation in 1997, according to the Associated Press.
  • Cardinal Pell spotted relaxing in Singapore ahead of Melbourne court appearance

    Cardinal Pell spotted relaxing in Singapore ahead of Melbourne court appearance

    A male passerby spoke to Cardinal Pell, saying he had spoken to his mother who wanted to know whether Cardinal Pell was innocent. That investigation found 7% of priests in Australia were accused of abusing children, from 1950 until 2015. "They are false.
    Shadow of Mordor free this weekend

    Shadow of Mordor free this weekend

    Middle-Earth: Shadow of War is out for Xbox One , Xbox One X, PlayStation 4 , PS4 Pro and PC on 10th October 2017. Simply put, it's a neat way to carry over the story into the new game if you played the first game.

    Total set to sign $4.8bn South Pars deal

    Iran's oil output has jumped 1.2 million barrels a day to 3.9 million barrels a day since sanctions were lifted. Total's Chief Executive Officer Patrick Pouyanne, left, with Iranian President Hassan Rouhani in January 2016.
  • Brace yourself: More ads are coming to Facebook Messenger

    Brace yourself: More ads are coming to Facebook Messenger

    Today's launch "gives marketers an opportunity to expand the reach of their campaigns and drive more results", Facebook wrote. Looking to strengthen another revenue stream, Facebook is expanding its Messenger ad program to businesses around the world.
    Surrounded by flames, firefighters rescue United States  flag from wildfire

    Surrounded by flames, firefighters rescue United States flag from wildfire

    Time-lapse video shows the fire moving up a mountain peak until it almost reached a camera recording it. There were 40 uncontained large US wildfires on Saturday, the National Weather Service said.

    Besiktas fans besiege Diego Costa's Instagram

    His experience helped the club escape relegation in the 2016-2017 season and the blues faithfuls sees him as the idle Striker to replace Diego Costa .