Yahoo Finance Uber, Yandex to Form New Joint Company in Russia
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Uber Technologies Inc. and Yandex NV (NASDAQ:YNDX) are about to launch a new company in Russia that will include elements from the former’s ride-hailing capabilities.
The combined company will be birthed partially thanks to a $225 million investment from Uber, which will hold a 36.6% stake on the new venture, which has yet to be named. The company’s valuation is expected to be around $3.73 billion, both parties confirmed late on Thursday.
Uber first set its foot in Russia three and a half years ago when it launched in Russia. The new venture will include more than just Uber’s transportation services, adding its EATS capabilities to the fold, which is a meal delivery platform launched by the Silicon Valley entity.
The businesses will operate in Russia, Azerbaijan, Belarus and Kazakhstan, as well as two places where it currently does not have operations: Armenia and Georgia.
Yandex is a technology company that focuses on Internet-related services in Russia, operating the largest search engine in the country.
“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 car ownership across the region,” Uber said in a statement.
Uber predicts the new company will offer 35 million rides a month in 127 cities.
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