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Uber and Yandex are merging their ride-hailing businesses in Russia

The two ride-hailing companies will form a new company called, appropriately, “NewCo” in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia, the companies announced in a press release. NewCo will combine the regional search, maps, and navigation strengths of Yandex with the operational ability and scale of Uber. As part of the deal, Uber will invest $225 million in Yandex, and Yandex will invest $100 million in NewCo, with Uber owning 36.6% of the new company, estimated to be valued at $3.7 billion. In a statement, Tigran Khudaverdyan, CEO of Yandex, said:

“This combination greatly enhances Yandex’s ability to offer better-quality service to our riders and drivers, to quickly expand our services to new regions, and to build a sustainable business. The combined companies currently perform over 35 million rides a month while growing over 400% year-over-year. Since founding Yandex. Taxi in 2011, we have connected tens of millions of riders and drivers to become the largest and most trusted ride-sharing business in Russia and neighboring countries. We are excited to expand on this foundation in collaboration with Uber.”

MG