Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
Business

Uber Cedes Control in Russian Market with Yandex Tie-Up

In both Russia and China, Uber was having trouble competing against larger ride services

An exterior view of the headquarters of Uber in San Francisco, photo: AP/Eric Risberg
2 months ago

MOSCOW – Uber is ceding control of the Russian market by agreeing to merge its ride-hailing business in the country with Yandex, the Russian search-engine leader that also runs a popular taxi-booking app.

For Uber, the deal marks the exit from another big market after it sold its operations in China last year to local rival Didi Chuxing.

Yandex said in a statement on Thursday that Uber and Yandex Taxi would combine into a new company in Russia as well as in Azerbaijan, Armenia, Belarus and Kazakhstan.

Yandex will own 59 percent, Uber roughly 37 percent, and employees the rest. The CEO of Yandex Taxi, Tigran Khudaverdyan, will become the chief executive of the new combined company.

San Francisco-based Uber will invest $225 million in the new company and Yandex $100 million, putting its value at over $3.7 billion. The companies said that together they deliver over 35 million rides a month, with $130 million in gross bookings in June. Yandex is the bigger company, with roughly the twice the business Uber currently has in the region.

In both Russia and China, Uber was having trouble competing against larger ride services that have the advantages of being the hometown company and knowing cultural differences, said independent technology analyst Jan Dawson of Jackdaw Research in California. “It’s like competing with Google in the U.S.,” he said. “They just weren’t really making headway against the local competitors.”

At this stage of its development, the money-losing Uber is looking to move to profitability, reviewing regions to see if there are prospects for making money. If the prospects aren’t good, Uber is likely to get out, Dawon said.

In the Yandex case, Uber will exit “in a dignified way” with the 37 percent stake in the new company. Uber had invested $170 million in Russia and is adding $225 million to the new company. So for about $400 million, it’s getting a stake in Yandex that’s worth over $1 billion, Dawson said.

Shares in Yandex jumped 15 percent on the Moscow stock exchange on news of the deal. The company is one of Russia’s most successful Internet enterprises, accounting for some 65 percent of all searches and operating popular maps and public transit apps.

Once the deal is closed toward the end of this year, consumers will be able to use both Yandex and Uber apps to hail rides, while for drivers, the apps will be integrated.

Comments Whatsapp Twitter Facebook Share
More From The News
World

U.S. General Says NKorea Military Postur ...

10 mins ago
Business

Report: Iran Says It Files Charges Again ...

23 mins ago
World

Catalan Police Ordered to Crack Down on ...

32 mins ago
Living

Weekly Horoscopes

32 mins ago
Most Popular

The Unexpected Heroes of the Earthquake

By María Trueba de Buen
Mexico

Mexico Tallying the Economic Cost of Big ...

By The Associated Press
Mexico

Searchers Dig as Mexico City Reopens jus ...

By The Associated Press
Mexico

Jojutla Is a 'War Zone' after Earthquake

By Notimex
Mexico

Trump Revels in Latest War of Words with ...

By The Associated Press
Sports