Uber and Yandex to combine ride-hailing in Russian Federation and beyond

Uber will own about 36.6% in the combined company with Yandex

Uber will own about 36.6% in the combined company with Yandex

The CEO of Yandex.Taxi, Yandex's ride-sharing division, will become CEO of the combined business. Together, their businesses handle 35 million rides a month, and will also operate in Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia.

The assets of the two companies will merge into a still-unnamed new company, with Yandex owning 59.3%, Uber owning 36.6%, and employees owning 4.1%, according to a press release sent out by Uber Thursday.

Tigran Khudaverdyan, the CEO of Yandex.Taxi, will head the new combined business, with Yandex holding four board seats and Uber holding three.

Uber will contribute its UberEATS food delivery business in the six-country region to the new venture. In recent months, Uber has been rocked by regulatory scandals, legal battles, accusations of harboring a toxic workplace culture, and a flurry of departures from top leadership, including the resignation of Travis Kalanick, the brash, former chief executive.

For Uber, instead of fighting with the so-called Google of Russian Federation for market share, initiating a merger with Yandex made more sense, especially with the other issues that the company has found itself in. The deal is expected to close within the last three months of the year, but the apps of Uber and Yandex will continue to function separately for the foreseeable future.

40% of Americans View N. Korea as Greatest Threat to US Security
China has slashed imports of coal from North Korea even as overall trade between the countries continues to rise. He called out the "nearly 40%" increase in trade in the first three months of the year on Twitter last week.

Kalanick and his longtime deputy Emil Michael both helped negotiate the deal in Russian Federation before they were pushed out of Uber last month, people familiar with the matter said.

"This deal is a testament to our exceptional growth in the region and helps Uber continue to build a sustainable global business", said Gore-Coty. Its taxi division is nearly twice the size of Uber's. "Combining Yandex's local expertise in search, maps and navigation with our leading global experience in ridesharing will enable us to build the best local services and provide a credible alternative to auto ownership across the region".

Otkritie brokerage analyst Timur Nigmatullin estimated that, before the deal, Yandex.Taxi represented around 20 per cent of the parent company's market capitalisation. And while each company will keep their brand, Yandex customers will be to able to use their app to summon Uber rides in countries where Yandex doesn't operate, and vice versa.

Uber's plans of global domination now lie in disarray. In the first quarter of this year, Uber reported more than $700 million in losses. Losses narrowed further in the latest period, Uber recently told investors.

"The effective elimination of Yandex's most risky competitor represents the key upside surprise, while it should also point to an easier and shorter path to profitability", BCS said.

Recommended News

  • Liverpool man reportedly in talks over a summer departure

    Liverpool man reportedly in talks over a summer departure

    With one year left on Lucas's deal, Liverpool couldn't expect more than £5m - so the decision now rests with the player himself. Gianluca Di Marzio revealed a deal is done for Lucas to make the move to the Stadio Olimpico this summer.
    Supreme Court issues notice to N Srinivasan, Niranjan Shah

    Supreme Court issues notice to N Srinivasan, Niranjan Shah

    No disqualified member can attend such a meeting as a nominee, the apex court said while seeking their responses on the issue. It also relieved Limaye, who quit recently after being appointed the Managing Director and CEO of National Stock Exchange.
    People pay final respects to Bradley Lowery

    People pay final respects to Bradley Lowery

    The theme for the funeral was "Cancer has no colours" and mourners duly adorned a variety of football shirts and bright wear. They said the service would be played on speakers outside the church for people who were not able to fit inside.
  • Ex-Soviet agent at meeting between Trump Jr., Russian lawyer

    Ex-Soviet agent at meeting between Trump Jr., Russian lawyer

    Trump Jr. said the meeting "really went nowhere" and that he never told his father about it because there was "nothing to tell". Intelligence committee Chairman Richard Burr would not say Thursday when he wanted to speak with Kushner or Trump Jr.
    Kermit the Frog voice actor says he is

    Kermit the Frog voice actor says he is "devastated" following Muppets firing

    Steve ended his blog post by apologizing to all of the fans of the Muppets and Kermit who have followed him throughout the years. According to Whitmire, he was first informed about the recasting last October, when Studio executives phoned with the news.
    Oil prices up amid IEA's optimistic oil demand forecasts

    Oil prices up amid IEA's optimistic oil demand forecasts

    And Barclays is also gloomy - their analysts say forget oil prices moving back above $US50 a barrel this northern summer. Rising demand is helping to drain a global fuel glut but rebalancing of the market is taking longer than anticipated.
  • Vanguard's CIO Buckley to become CEO as McNabb steps down in 2018

    Vanguard's CIO Buckley to become CEO as McNabb steps down in 2018

    Also, he was formerly the company's Asia Pacific chief investment officer and a director of Vanguard Investments Australia. Vanguard , based in Malvern, Pa., is one of the world's biggest fund managers, with $4.4 trillion in assets.
    History on line as Konta faces Venus showdown in Wimbledon semis

    History on line as Konta faces Venus showdown in Wimbledon semis

    The American, who has seven grand slam singles titles in total, is the subject of a wrongful-death lawsuit over the accident. If Williams wins Saturday, she would be the oldest women's Grand Slam champion in the Open era (since 1968).

    Steinberg Global Asset Management Boosts Position in Eaton Corporation, PLC (ETN)

    The stock of Eaton Corporation, PLC Ordinary Shares (NYSE: ETN ) has "Neutral" rating given on Friday, February 3 by JP Morgan. Manufacturers Life Ins Com The holds 0% of its portfolio in Eaton Vance Tax-Managed Buy-Write Income (NYSE:ETB) for 75 shares.
  • Reliance Jio's LYF-Branded 4G Specifications and Images Leaked

    Reliance Jio's LYF-Branded 4G Specifications and Images Leaked

    The new phone may have Bluetooth 4.1 and USB tethering as well, the report added as well as Global Positioning System . Next coming on to the back panel, The phones has a 2-megapixel camera that is pretty similar to that of the Nokia 3310.
    Pre-Pregnancy Genetic Testing Market New Technologies Research 2017

    Pre-Pregnancy Genetic Testing Market New Technologies Research 2017

    The Global Carbonated Beverage Processing Machinery market consists of different worldwide , regional, and local vendors. The latest and the newest trends of the Industrial Chiller industry are also included in this report.
    'Game of Thrones' Season 7 Premiere: The Stars Hit the Blue Carpet

    'Game of Thrones' Season 7 Premiere: The Stars Hit the Blue Carpet

    Sophie Turner traded her Sansa Stark furs for a shimmery Louis Vuitton number at last night's Game of Thrones premiere in LA. If Snow dies before the show concludes, we'll be more astonished than when Ned was beheaded at the end of Season 1.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.