Yandex, that is also referred as the Google of Russia, and Uber have decided to merge their ride-sharing ventures in Russia and five neighboring nations. Yandex will be the leading partner in this merger, the companies claimed this week to the media. The deal symbols one more pullback from immediate international expansion of Uber, coming a year post its way out from China.
In a combined statement, Uber and Yandex claimed to the media in an interview that they will join forces in Armenia, Russia, Belarus, Azerbaijan, Kazakhstan, and Georgia to make a new firm working in some 127 cities. All this comes under a deal that is expected to close in the quarter four of this year. As an element of the deal, Uber will provide its UberEATS food delivery venture in the 6-country area to the new business. Yandex, the expanded Internet major, is the ruling player in maps, web search, and mobile navigation in the area.
Uber, the San Francisco-based company, has decided to spend $225 Million. Whereas Yandex has decided to spend $100 Million into a fresh joint firm in which Yandex will possess 59.3%, Uber will have 36.6%, and workers will have 4.1% share. Uber claimed to the media in an interview that the amalgamation in eastern part of the Europe does not apply a plan of further cutback elsewhere. Certainly, economical terms of the contract make it a profitable one, it further added while talking to the media.
“This is an exhilarating chance in an exceptional situation and our work in other nations will not be impacted,” Head of Uber in the Middle East and Africa as well as Europe, Pierre-Dimitri Gore-Coty, claimed in a blog post written to Uber workers. Gore-Coty claimed that the 36.6% share of Uber is esteemed at $1.4 Billion, based on a decided calculation of $3.725 Billion for the mutual company.
That symbolizes a large gain on the $170 Million Uber spent since making an entry in the region 3.5 Years back, even with the new $225 Million investment. Uber traded its Chinese venture to far larger domestic competitor Didi Chuxing 1 Year back in return for Uber getting a 17.5% share in Didi, which was then esteemed at $35 Billion.