Together, Uber and Yandex now book more than 35 million rides a month in the region.More news: This Song Become Most Viewed Video After Gangam Style
Uber lost $708 million in the first quarter of this year alone, though its revenue grew 18% to $3.4 billion.
San Francisco-based Uber has agreed to invest $225 million (roughly Rs. 1,450 crores) while Yandex will invest $100 million into a new joint company in which Yandex will own 59.3 percent, Uber holds 36.6 percent and 4.1 percent by employees on a fully diluted basis. It is Uber's second retreat from a major market after quitting China previous year. Uber has spent $170 million on the eastern Europe market since 2014, the company said. "We are excited to expand on this foundation in collaboration with Uber". Over the last three years we have invested around $170 million in the Russian-speaking territories alone to build and expand our business to 21 cities in the region. It recently dumped its CEO, Travis Kalanick, after a series of crises, including allegations that Uber managers didn't adequately address reports of sexual harassment. The tech company does a lot more than just ride-hailing and could use its dominance online to battle Uber.More news: China's Lenovo outdone by HP in market share in Q2
For Uber, the deal means it's ceding control of the market in the country. Yandex is the bigger company, with roughly the twice the business Uber now has in the region.
According to the report from Yandex, both Yandex.Taxi and Uber app will operate as before, driver apps, on the other hand, will be transitioned to a unified platform. This will give the whole service a much larger pool of drivers (presuming there wasn't already a lot of overlap), as well as passengers.More news: BoC raises interest rate, TSX shrugs it off
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