Uber joins Yandex to carve out a place in Russia

Uber partners with Yandex to carve out a place in Russia

The Uber last month accepted the resignation of its CEO and founder Travis Kalanick, who left his role after a series of accusations of sexism and harassment internal to the company. The San Francisco company’s board has decided that the time has come to adopt a new strategy and the first operation after this sea change has the feel of a surrender. Uber has partnered with Yandex Taxi, ride-sharing platform owned by Google homolog Russian. The two companies will form a new company, but the US will have a minority stake (36.6%). Also the CEO of this reality which still has not revealed the name will be the current number one Yandex Taxi, Tigran Khudaverdyan. The fruit of this collaboration will operate in several CIS countries like Russia, Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia. It is expected that its value will be around 3.72 billion dollars and that will process 35 million total strokes per month with an annual growth of 400%. The technological platform for the drivers will be unified but the two will remain separate app for users and will provide complementary services to one another.

Uber has failed to conquer Russia for various reasons. Yandex Taxi has a more fine-grained control of the territory by operating in 126 cities in five countries of the USSR disappeared. The US company however in three years has grown in just 21 centers despite an investment of 170 million dollars and an aggressive pricing policy. Yandex also controls the mapping service most widely used in Russia and especially thanks to the collaboration with the taxi drivers did not have to deal with protests and blockades. We have to remember that in this part of the world users still prefer traditional or illegal taxi services. The new company will check it just 6% of the market but that is Uber Yandex intend to make significant investments. The first put on the plate 225 million dollars and the second over 100. “This agreement helps Uber to build a sustainable global business,” said Pierre-Dimitri Gore-Coty, Head of EMEA company in San Francisco.

The giant ride sharing Made in USA so dominating in the West but in the East has recorded more of a problem. Uber fact has not withdrawn only in Russia but also in China, a country that is giving further close the online freedom of its citizens. His app is no longer available in the country of the dragon, and the company is limited to buy part of the shares of local rivals Didi Chuxing, which was acquired by Apple in 2016 for $ 1 billion.

Selina

Selina

I breathe tech! Want to get me to talk about something else? Then try movies.

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