Yandex Taxi and Uber decide to ride together

Yandex and Uber announced foundation of a combined company what will operate in Russia, Azerbaijan, Armenia, Belarus, Georgia, and Kazakhstan.

The new company will cover 127 cities of 6 countries and carry out 35 million transfers monthly.

Yandex will be the leading partner, with Yandex Taxi Chief Executive Tigran Khudaverdyan becoming the combined company’s CEO.

The deal received approval of the Boards of Directors of both Uber and Yandex and now only needs the same from regulating agencies. The deal is expected to close in the fourth quarter.

Tigran Khudaverdyan stated the new business will create “personal public transport that will become an alternative for cars, buses or metro”.

Calling a taxi will be possible via Yandex Taxi and Uber apps. The drivers are to unite on a common platform, which will help increase the number of available vehicles and reduce waiting time.

Tigran Khudaverdyan also told about the so-called “roaming agreement” with Uber.

“For instance, you can call an Uber car via Yandex Taxi app while you’re in London or Bangkok, and let’s say, a tourist from Paris will be able to call a Yandex Taxi via Uber app,” he stressed.

The Verge reports that the new company (named NewCo) will be worth USD 3.725 billion. Uber invested USD 225 million as opposed to Yandex investment of USD 100m.

Yandex will take 59,3% of the shares, leaving 36,6% to Uber and 4,1% to the NewCo staff.