Uber gives up the fight in Russian Federation

Uber merges with Russia s Yandex in six ex Soviet countries

Uber merges with Russia s Yandex in six ex Soviet countries

Uber has agreed to merge its ride-hailing business in Russia with Yandex (YNDX), the Russian search-engine leader that also runs a popular taxi-booking app. It's a substantial operation.

Combined, the two companies provide more than 35 million rides a month in the region.

Uber entered Russian Federation with a launch in Moscow three-and-a-half years ago.

Yandex (NASDAQ:YNDX) inks an agreement with Uber (Private:UBER) to combine their ridesharing businesses in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia into a new firm called NewCo.

Uber inked a similar deal in China a year ago when it merged its business in the Asian powerhouse with rival Didi Chuxing. It recently dumped its CEO, Travis Kalanick, after a series of crises, including allegations that Uber managers didn't adequately address reports of sexual harassment.

Yandex will contribute $100 million and get 59.3 percent, meaning it will control the company but have plenty of coordination with Uber.

As shareholders in our company, all of us should be incredibly excited about this next stage.

"This deal is a testament to our exceptional growth in the region and helps Uber continue to build a sustainable global business", said Pierre-Dimitri Gore-Coty, the head of Uber in Europe, the Middle East and Africa. In markets where it is still a smaller player, that can prove to be costly. Yandex is the bigger company, with roughly the twice the business Uber now has in the region.

Earlier this week, Uber said it will be improving an offer to drivers and would welcome greater legal clarity about different types of employment in Britain, in response to a government review into the gig economy published on Tuesday. This will give the whole service a much larger pool of drivers (presuming there wasn't already a lot of overlap), as well as passengers.

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