Uber the solution to local traveling is now yielding its clout abroad. Last year in August the company had started to emerge in China and has successfully marked its steps. After China the next destiny to Uber’s journey is Russia.
Uber is emerging to Russia and this time the company have merged with the local taxi arm of Russian search engine giant Yandex. This newly merged company will be having a worth of $3.725 billion and both have already announced to span and cover traveling in 127 cities in 6 countries (Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan).
Investment of $100 Million by Yandex and $225 Million by Uber
The merger deal has set the share percent that will make an investment of $100 million by Yandex and $225 million by Uber. The total shares are divided into three that makes the highest share goes to Yandex ranging 59.3 percent, then 36.6 percent share goes to Uber and the remaining goes to the employees of the company.
Employees that work full time for Uber are willing to join this newly merged company. Whereas the name of this Yandex-Uber partnership company is not named yet.
In 2014 Uber was launched in Moscow. Uber hold it’s presence in 16 cities of Russia, however, five in Azerbaijan, Belarus, and Kazakhstan.
On the other hand, according to Bloomberg Russia’s arm taxi, Yandex holds gross booking ranging from $1.01 billion on an annualized basis. And comparatively Uber holds just a half of these gross booking that is at $566 million.
By the reports made by the New York Times, Yandex is known as the “Google” of Russia. This feature serves benefits to Uber as Yandex has an extensive mapping database. Now, this makes sense why Yandex took more than half shares. Well true to say this was brilliant market strategy rather than fighting over shares and making sense to get merged.
The head of Uber’s business in Europe named, Pierre-Dimitri Gore-Coty, today send an email to his employees over this newly emerged company that says:
“Combining our business with Yandex will give us a very significant stake in a new company which will initially serve more than 35 million trips each month,”
The arm taxi of Russia has estimated that that total share of Yandex in taxi sector of Russia only ranges for about 5 to 6 percent. Tigran Khudaverdyan, CEO of Yandex.Taxi in a blog post.
Tigran Khudaverdyan, CEO of Yandex.Taxi has written a blog post saying:
“Many of us who work inside Yandex feel that everyone has already switched to ride-sharing, but in reality, we are just at the beginning of this journey,”
On the whole, Uber explains the future set ups of the new company saying that the rider apps for both the companies will be continuing to operate as normal like they were used earlier. Alongside the drivers, apps will get integrated soon after the transaction closes.
Uber also explain that the merger deal is still on the subjected to regulatory approval and other conditions, and also expecting to close during the last quarter of the year
Uber says that for the foreseeable future, both the Uber and Yandex rider apps will continue to operate as normal. Driver apps will be integrated after the transaction closes. The deal is still subject to regulatory approval and other conditions and is expected to close in the last quarter of the year.