Company led by Armenian to be represented in Azerbaijan

Thu 13 July 2017 13:34 GMT | 17:34 Local Time

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Russian online service Yandex.Taxi and Uber have agreed to combine their businesses in Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan, according to the report from Yandex.

According to the report, both Yandex.Taxi and Uber app will operate as before, driver apps, on the other hand, will be transitioned to a unified platform. "This combined driver platform will significantly increase the number of available cars, reduce passenger wait time, and boost vehicle utilization. Drivers will be able to perform more trips per hour while passengers will continue to enjoy affordable prices," the company said.
The new company will also operate the UberEATS service in the region.

Uber will invest $225 mln and Yandex will invest $100 mln into the combined company, valuing it at $3.725 bln on a post-money basis. "On a pro forma basis, Yandex will own 59.3% of the combined company, Uber will own 36.6%, and employees will own 4.1%," Yandex said.

The transaction is still subject to regulatory approvals and is scheduled to close in the Q4 2017.

"The combined company will benefit from the robust technology stack that we have developed and the world-class navigation and mapping technologies of Yandex. Over the past year we have made several significant leaps in our routing and ride-assignment algorithms that have greatly increased vehicle utilization. For example, now, during rush hour, drivers can perform 30% more trips than before. Unifying our drivers platforms will create an even greater opportunity to improve the quality of our services and further boost vehicle utilization," according to Yandex.

The two teams will be integrated together and the current CEO of Yandex.Taxi Tigran Khudaverdyan will serve as the CEO.

According to analysts, the size of the official Russian taxi sector reaches approximately $8.4 bln (2016, VTB Capital). "That means that the combined company’s share of the taxi sector would have been only about 5-6%," Yandex said.

According to the company, the service’s users will have "seamless global roaming across the Uber and Yandex.Taxi platforms."

In late May, Yandex has demonstrated an early prototype of its driverless car technology and plans to continue developing this project in the future.

Yandex shares at the Moscow Exchange rose by more than 17% and reached the level of 1,915 rubles per share against the backdrop of news about business consolidation with Uber.




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