This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-40599501
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Uber and Yandex combine forces in Russia | Uber and Yandex combine forces in Russia |
| (35 minutes later) | |
| Uber is to merge its Russian business with local competitor Yandex, after the US ride-hailing firm spent millions to build a presence in Russia and other countries in the region. | |
| Yandex, compared to a Russian Google, will own about 59% of the combined company, valued at $3.7bn (£2.9bn). | Yandex, compared to a Russian Google, will own about 59% of the combined company, valued at $3.7bn (£2.9bn). |
| The deal heads off competition from Uber, which launched in Russia in 2014. Their rivalry had fuelled a price war. | The deal heads off competition from Uber, which launched in Russia in 2014. Their rivalry had fuelled a price war. |
| Yandex's stock climbed 16% on Thursday. | Yandex's stock climbed 16% on Thursday. |
| Tigran Khudaverdyan, who heads Yandex.Taxi and will be boss of the new company, said the combination will boost rides for drivers and reduce wait times for passengers. | Tigran Khudaverdyan, who heads Yandex.Taxi and will be boss of the new company, said the combination will boost rides for drivers and reduce wait times for passengers. |
| "This combination greatly enhances Yandex's ability to offer better quality service to our riders and drivers, to quickly expand our services to new regions, and to build a sustainable business," he said in statement. | "This combination greatly enhances Yandex's ability to offer better quality service to our riders and drivers, to quickly expand our services to new regions, and to build a sustainable business," he said in statement. |
| Is ride-sharing giant Uber giving up on its China dream? | Is ride-sharing giant Uber giving up on its China dream? |
| Uber: Travis Kalanick's rollercoaster reign | Uber: Travis Kalanick's rollercoaster reign |
| Yandex, which started in 1997 and has a search engine and other services, launched its taxi business in 2011. It is about twice the size of Uber's, according to data released to investors Thursday. | Yandex, which started in 1997 and has a search engine and other services, launched its taxi business in 2011. It is about twice the size of Uber's, according to data released to investors Thursday. |
| Yandex will contribute $100m to the new company, which will operate in 127 cities in Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan. | Yandex will contribute $100m to the new company, which will operate in 127 cities in Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan. |
| Uber, which will invest $225m and have a roughly 37% stake in the combined firm, sought to cast the deal as a way to make its finances sustainable and build on its growth. | Uber, which will invest $225m and have a roughly 37% stake in the combined firm, sought to cast the deal as a way to make its finances sustainable and build on its growth. |
| The San Francisco company has been under pressure from investors to stem losses and move past a string of scandals that led to the ouster of its long-time chief executive Travis Kalanick. | The San Francisco company has been under pressure from investors to stem losses and move past a string of scandals that led to the ouster of its long-time chief executive Travis Kalanick. |
| "This is an exciting opportunity in a unique situation and our operations in other countries will not be affected," Pierre-Dimitri Gore-Coty, head of Uber's business in Europe, the Middle East and Africa, wrote in an email to employees posted on the firm's website. | "This is an exciting opportunity in a unique situation and our operations in other countries will not be affected," Pierre-Dimitri Gore-Coty, head of Uber's business in Europe, the Middle East and Africa, wrote in an email to employees posted on the firm's website. |
| Uber has also been recalibrating its global expansion strategy. | Uber has also been recalibrating its global expansion strategy. |
| This spring, it said it would withdraw from Denmark. | This spring, it said it would withdraw from Denmark. |
| Last year, it sold its Chinese business to rival Didi Chuxing after losing a reported $2bn trying to break into the market. In exchange, Uber received a stake in the combined company. | Last year, it sold its Chinese business to rival Didi Chuxing after losing a reported $2bn trying to break into the market. In exchange, Uber received a stake in the combined company. |
| Established competitor | Established competitor |
| The arrangement with Yandex is somewhat similar. | The arrangement with Yandex is somewhat similar. |
| Uber said it had invested $170m over three years in Russia, Azerbaijan, Belarus and Kazakhstan, establishing itself in 21 cities. | Uber said it had invested $170m over three years in Russia, Azerbaijan, Belarus and Kazakhstan, establishing itself in 21 cities. |
| But it faced a more established competitor in Yandex, which has a much bigger presence in the region. | But it faced a more established competitor in Yandex, which has a much bigger presence in the region. |
| The merger is expected to give the firm 5% to 6% of the Russian taxi market. Together, they deliver about 35 million rides each month. | The merger is expected to give the firm 5% to 6% of the Russian taxi market. Together, they deliver about 35 million rides each month. |
| "If you think about the opportunity ahead, I think it's tremendous," said Greg Abovsky, chief financial officer at Yandex. | "If you think about the opportunity ahead, I think it's tremendous," said Greg Abovsky, chief financial officer at Yandex. |
| If approved by regulators, the merger is expected to close by the end of the year. | If approved by regulators, the merger is expected to close by the end of the year. |
| The companies said both brands and apps would remain active for consumers. The two companies will integrate the apps for drivers. | The companies said both brands and apps would remain active for consumers. The two companies will integrate the apps for drivers. |
| Uber's food delivery service UberEats will also be part of the combined firm. | Uber's food delivery service UberEats will also be part of the combined firm. |