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.
James is a writer and editor at MobileAppDaily and he is famous as a tech journalist at MobileAppDaily. He focuses on the mobile app startups & ventures and brings them to the light. He has started his career as a tech writer 6 years ago just after completing his degree in Broadcast and Digital Journalism.