Uber has merged its functions with Yandex.Taxi after it launched itself three years ago in Russia. Moreover, the ride hailing company will merge all of its functions with its counterpart. Uber released this news through its blog post.
Yandex operates from Moscow as one of its tech giants. It operates in countries like Ukraine, Turkey, Belarus, Kazakhstan including the ride hailing cab in Russia. Yandex also operates in several other verticals in the tech industry. These include email, search, analytics, and maps.
Yandex has a good market share in Russia. It has been able to generate a good market for its services and plans to expand its services to other regions.
Moreover, Uber has also included the UberEats services in this deal as well.
Uber will invest $225 million in cash in this merger deal. It has come to realise that if it wants to succeed in cab services in Russia, then it needs to collaborate with Yandex.Taxi.
The combined strength of both the businesses coming together will make a huge impact. Both are spread across a region of 127 cities in six different countries. Moreover, Yandex.Taxi is able to serve over 35 million trips every month. Uber will hope to gain momentum through this partnership.
CEO of Yandex, Tigran Khudaverdyan will serve as the CEO of this newly formed company as well.
Both the parties, however, stayed away from the press to comment on the merger. The only source was the official blog posts that informed of this merger between these two giants of the cab hailing service.