Both agreed to the deal of $125 million
The carpooling giant is agreed to shake hand with the Google of Russia, Yandex to start a merged venture in the 127 cities. Both the companies have made a deal to start a sharing ride service in the Russian. The Uber got the global expansion opportunity that it's looking for a long time after its exit from China.
The deal is expected to close in the fourth quarter of the year. Both the companies are agreed to serve their joint venture in Russia, Armenia, Azerbaijan, Belarus, Georgia, and Kazakhstan covering almost 127 cities together.
The deal also allows the Uber to contribute its UberEats business in the six-county region.
The deal comprises the $125 million from the Uber and Yandex will invest $100 million. In this new riding service in Russia, the Uber will own 36.5%, Yandex will have 59.3% and the employees having a 4.1% stake.
Uber last year its business in China to the local rival Didi Chuxing in return of 17.5% of stake in Didi which worth $35 Billion. It the biggest investment that Uber has made in a long time. Both the Giants are looking to acquire high revenue from this deal in future.
This new joint venture will face some of the top rivals in Russia including Fasten-owned Rutaxi and Saturn, Maxim, and Gett, It will be quite interesting to see how Uber and Yandex will implement their strategies to outrun the archnemesis.
From leading business houses to budding startups, everyone can bank on us for all their future insights.A look at our mighty stats is a proof enough of our intentions to drive emerging advancements in the mobile industry and reinventing digital media in every possible way JOIN US!