After Uber decided to left China, this innovational company makes its second business retreat by merging with Yandex. Yandex, Uber’s biggest rival in Russia, is said to hold the control over the new-formed company. In the other hand, Uber must be happy to have only 36.6% of the whole shares.
The new company formed by Yandex and Uber’s merge is yet to be named. But one thing we’re sure about, is that the company is worth as big as $3.73 billion. That includes Uber’s $225 million investment and Yandex’s $100 million investment. Even though Yandex invests less money on the new venture, the Russian transportation giant is reported to have 59.3% of the whole shares. Not only that, Yandex’s shares double up to 19% after they closed the merging deal. And Yandex Taxi current CEO, Tigran Khudaverdyan, announced to take the control over the new-formed company. Good news for Yandex.
While Yandex experiences their best moment of the year, Uber, on the other hand, looks a bit troubled. The world leading online transportation company seems like it’s not doing so good recently. Their recent failure in China marked their first major loss in business. They decided to leave China for 17.5% Didi Chuxing shares after spending over $2 billion trying to beat Didi Chuxing, their though competitor. This unfortunate event then led to Uber’s Chief Executive Officer, Travis Kalanick, getting removed from Uber’s team.
However, Uber is currently fixing their shaken position. “This deal is a testament to our exceptional growth in the region,” says Uber Chief for Europe, Africa and Middle-East, Pierre-Dimitri Gore-Coty. “And helps Uber continue to build a sustainable global business,” he continues.
Uber also still becomes the most-used online transportation in the whole US. And their business in the other 83 countries and 674 cities are doing just fine. What do you think of Uber’s decision to merge with Yandex? Do you support it? Drop your comment on the box below and don’t forget to share!