The strategic union between Uber and Yandex Taxi has reached a happy conclusion, which is the green light from Russia’s Federal Antimonopoly Service (FAS).
The Russian government is reportedly in the favor of the merger. Uber is the country’s biggest technology company and Yandex is its most popular search engine. In this deal, San Francisco-based Uber wants to fund $225 million to Yandex. In return, Yandex would take 59.3 % possession of a jointly-held company through a $100 million investment.
A deputy in the FAS Anatoly Golomolzin mentioned that the deal was approved on the basis that Yandex didn’t prevent drivers or passengers from using other services.
“We understand that it is important to ensure the development of competition in such markets even at the very first stage, so that all market participants are on an equal footing,” said Golomolzin.
“The results of analysis of the market for the organization of information interaction between taxi drivers and passengers showed that the market is in the stage of active growth,” said an FAS statement. “In this case, there will be aggregators providing services through a new convenient way to order a taxi—in the mobile device application.”
Formally announced in July, the union of ride-sharing companies opens both up to 127 cities. UberEATS will launch in the six-country region where Yandex and Uber would work together: Russia, Armenia, Azerbaijan, Belarus, Georgia, and Kazakhstan. According to the agreement, users have the choice to use Yandex Taxi and Uber apps to get a ride in these countries.
The united company will start working together in January of 2018. Four members from Yandex will be on the board, with three seats for Uber.