American Uber and Russian Yandex announced the creation of a joint venture

Uber - Yandex.Taxi
Uber - Yandex.Taxi

Uber and Yandex signed an agreement to merge businesses of online travel arrangements in Russia and in some CIS countries (Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan). The value of the merged company is $3,725 billion  in which “Yandex” will receive 59.3%. Delivery service UberEATS food will also be included in these countries’operations.

Under the agreement Uber and Yandex will invest $225 million and 100 million in the new combined company respectively. With these investments and possible adjustments at the time of closing of the transaction 59.3% of the company will belong to Yandex, 36,6% to Uber, and 4.1% to employees. It will be headed by the General Director of Yandex.Taxi – Tigran Khudaverdyan. The transaction has been approved by the Boards of Directors of both companies and is subject to approval from regulators. The deal is expected to close in the fourth quarter of 2017.

Tigran khudaverdyan: “How do the unified platform figures look for June”

  • 127 cities in six countries;
  • 35 million trips per month;
  • 7.9 billion RUB the total cost of travel per month

Experts estimate the total revenue of legal travel carriers in Russia to 501 billion rubles in 2016 (VTB Capital). The “grey” segment was evaluated  to be 116 billion rubles in 2015. Thus, the share of the incorporated company in Russia in 2016 would be approximately 5-6% based on this indicator.

Despite the merger Yandex.Taxi and Uber will continue to operate independently. As explained in the message, the taxis and drivers that work with both services, will move to a single technology platform that “will allow to increase the amount of available cars to carry out the orders, reduce the waiting time, reduce downtime, and improve the reliability and availability of the service as a whole.”


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  1. Deal was closed in February 2018. In the united company, Yandex received 59.3% of shares, Uber — 36.9%, employees of the new structure — 3.8%. Uber invested $225 million in the new company and $100 million was invested by Yandex. Tigran khudaverdyan, who previously headed Yandex, became the CEO of the new company.

    The Board of Directors consists of four representatives from Yandex: Chairman of the Board of Directors of Yandex N. V. John Boynton, head and founder Arkady Volozh, operations and Finance Director Greg Abovsky and Vice President for corporate development Vadim Marchuk.

    From Uber to the Board of Directors three representatives were asigned: Vice President, corporate development Cameron Poacher, the head of the company in the region Europe, middle East and Africa Pierre-Dimitri Gore-Coty and the head of the international division of internal audit Michelle Debella.

    The companies have agreed to combine the business in several countries of the CIS in July 2017. Initially, it was assumed that the distribution of shares in the company will be somewhat different: 59.3% of the new structure will belong to Yandex, 36.6% — Uber, 4.1% — its employees.

    It was assumed that as a result of the transaction “Yandex” will receive a small stake in the global business of Uber. At the end of November 2017, the deal was approved by the Federal Antimonopoly Service.

    At the same time, FAS instructed companies to provide the fullest possible and accessible information to users about the legal entity-carrier while preserving the history of travel, as well as not to establish a ban for partners, drivers and passengers to work with other taxi aggregators.

    Initially, the value of the merged company was valued at $3,725 billion. In the message of “Yandex” stated that now the figure “is estimated at more than $3.8 billion”.

    As explained by the representative of “Yandex”, the new assessment is formed taking into considration cash, which the United company will able to use. As a result of closing of the transaction company will have more than $ 400 million on its accounts.

    As previously explained by representatives of the companies, after the transaction both brands will continue to exist. However, the association should improve the quality of services of both companies.

    As explained by their representatives, a single technological platform will be created for taxi parks and drivers, which should increase the number of cars available to fulfill orders, reduce the time of their submission, reduce idling, improve the reliability and accessibility of the service as a whole.

    The combined company “Yandex.Taxi ” and Uber will deal not only with the transportation of passengers, but also the delivery of food from restaurants — transaction included UberEATS.

    Previously, “Yandex.Taxi established a subsidiary called Yandex.Food”, which will include Foodfox and UberEATS. In December of 2017 “Yandex.Taxi” has closed the transaction on purchase of the service delivery of food Foodfox. Presumably, the purchase of Foodfox costed “Yandex.Taxi” approximately 500 million rubles.

    After the merger, “Yandex.Taxi” and Uber can attract third-party investors into the joint venture, including IPO. As reported by the head of Treasurer’s office of “Yandex” Greg Abovsky, this may take place in the first half of 2019, most likely in the United States. “Yandex” shares are traded at Nasdaq, IPO was held in may 2011, the deal attracted $1.4 billion.

    According to the analytical center under the government of Russia, the volume of the taxi market in Russia in the last couple of years increased by 14.2% annually and at the end of 2017 amounted to 575 billion rubles. The authors of the study call the group of companies “Vezet” the largest player in the market with a share of 12.3% — it was created by combining taxi services Fasten Russia (works under the brands “Saturn” and RedTaxi) and “Vezet” (brands RuTaxi, “Leader”, “Vezet”). The total share of “Yandex.Taxi ” and Uber at the end of the year amounted to 10.4% of the market, which means that their combined structure will take the second place in the market. It is followed by “Maxim” with 7.6% of the market, and then Gett with a share of 2.5%. In General, aggregators still occupy only 32.8% of the taxi market in Russia, the remaining share falls on the traditional market of offline ordering.

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