Uber is joining its business with the transportation side of Yandex, a large search engine company in Russia. The joint venture will have a value of $3.725 billion and it'll operate across 127 cities in 6 countries: Russia, Azerbaijan, Armenia, Belarus, Georgia, and Kazakhstan.
No name for the newly formed company has been revealed, though some details of the arrangement are available. Uber is investing $225 million and receiving a 36.6% stake. The majority stake (59.3%) goes to Yandex, which is investing $100 million. The rest of the company will be held by employees.
Yandex has had a home field advantage over Uber in Russia, which was represented by their respective performances. While Yandex received over $1 billion annually from its business, Uber's revenue was around half that amount.
Combining our business with Yandex will give us a very significant stake in a new company which will initially serve more than 35 million trips each month.- Pierre-Dimitri Gore-Coty, Uber
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