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Uber spins off Russian business into venture with online giant Yandex

Europe
13.07.2017
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Moscow (dpa) - Taxi-hailing company Uber has agreed to spin off its Russian business into a new venture with local internet giant Yandex, that company said Thursday.

US-based Uber plans to invest 225 million dollars in the new company, with Yandex, often called the "Google of Russia," investing 100 million dollars, according to the statement released by Yandex.

The new venture "will be owned approximately 59.3 per cent by Yandex, 36.6 per cent by Uber, and 4.1 per cent by employees of the company," the statement said.

Russia‘s Federal Anti-Monopoly Service censured the move for its potential to severely restrict competition in the market.

"We have three main aggregators, and if two of them are going to merge, then this is of course a threat to the market," anti-monopoly chief Igor Artemyev said in comments carried by state news agency TASS.

The new company, if approved, would operate in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia, according to the press release.

 

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