Image by Alisher Hasanov
Russia’s hi-tech, internet portal Yandex is merging with Uber in the Russian Federation. Yandex cornered the taxi market years ago in Russia and it seems Uber could not break into the market in a big enough way to be profitable.
The new company will be called NewCo and will take over online taxi operations in Russia, Kazakhstan, Armenia, Azerbaijan and Georgia, reported The Moscow Times.
Yandex stock rose 20% on the Moscow stock exchange. The Moscow Times reports the two brands will remain viable but will share technology.
“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,” Tigran Khudaverdian, head of Yandex.Taxi and director of the joint venture, said.
“Since founding Yandex.Taxi in 2011, we have connected tens of millions of riders and drivers to become the largest and most trusted ridesharing business in Russia and neighboring countries. We are excited to expand on this foundation in collaboration with Uber.”