Uber and Yandex has announced an agreement to form a new company. The company would combine Uber Ride with EATS businesses in Russia, Azerbaijan, Belarus, and Kazakhstan. Also, it would operate in America and Georgia where Uber does not operate currently. It has been three and a half years now that Uber started operating in Moscow. The company started from scratch and then expanded itself in 16 cities in Russia and five areas in Azerbaijan, Belarus, and Kazakhstan. Now, this next step in these countries is quite welcoming.
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Now the new company established by Uber and Yandex’s aim is to attend to the demands of drivers, riders, and cities. They want to develop a maintainable ridesharing, food delivery and logistics trade in these countries. Yadex experience and knowledge in local search, maps and navigation would be combined by Uber’s global ridesharing experience. For the future, the brands and apps of Uber and Yandex would continue to work as they do while driver apps would collaborate even when the agreement closes. The agreement is anticipated to close by end of this year.
All the officials and shareholders are excited about this venture. In the last three Uber had invested $170 million to expand its business in 21 cities in the countries they are now working for.
Uber would benefit from this collaboration; the company has three out of seven seats on the board of the new company and 36.6% ownership. The deal indicates how Uber is growing and developing as ride hailing company globally.
Pierre-Dimitri Gore-Coty, head of Uber’s business in Europe, the Middle East, and Africa acknowledged the effort of their employees to make this possible. He said that even after the agreement the Uber staff in countries involved would be a part of the new company. He also said that any further questions and queries related to this would be answered in a session they are conducting in the region.