Uber merges with Russia's Yandex in six countries

Uber on July 13 announced that it was merging in Russia and five other ex-Soviet states with the taxi hailing app of the country's leading internet giant, Yandex.

"Uber and Yandex have entered into an agreement to form a new company," the head of Uber's operations in Europe, the Middle East and Africa, Pierre-Dimitri Gore-Coty, said in a statement, calling it "an exciting opportunity in a unique situation."
   
The merger applies to ex-Soviet Russia, Azerbaijan, Belarus and Kazakhstan, and will also cover Armenia and Georgia, where Uber does not currently operate -- in total covering 127 cities, he said.

The move follows the sale by Uber of its China business in 2016 following a ferocious battle for market share.    

The company's chief executive Travis Kalanick resigned in June under pressure from investors over a corporate culture rife with bullying and sexism.

Uber launched in Russia three and a half years ago. Yandex started its taxi app in 2011 and controlled more than half of the market in 2016.

Yandex.Taxi's general director Tigran Khudaverdyan said in a statement that the joint venture would provide 35 million taxi journeys per month.

He said the aim was to "create a platform that will be comparable in terms of comfort and accessibility with having your own car."   

Yandex said the joint company was worth $3.725 billion. It said it was investing $100 million into the venture, with a 59.3 percent stake.

Uber said its investment is $225 million dollars and its 36.6 percent stake will be worth almost $1.4 billion. The remaining stake will be held by employees.

The companies said that passengers could continue to use the separate apps, while drivers will work using a single...