FAS allowed “Yandex.Taxi” and Uber to combine the businesses
The terms of the transaction
The signing of the transaction, the parties announced on 13 July 2017. According to the agreement, Yandex and Uber will combine their businesses online-order trips in Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan in the new company. It will also include the delivery service UberEATS food.
The parties will invest in the new company $225 million and $100 million respectively, valuing it at $3,725 billion With these investments and possible adjustments at the close of the transaction, 59.3% of the company will be “Yandex”, 36,6% — Uber, 4.1% of the employees of the two companies. The parties agreed to close the deal after Christmas and new year holidays in January 2018, in order to avoid disruption of services during this period.
Uber on the basis of agreements stated that for the company the deal offers great opportunities for business development in a specific region, “covering the six countries.” At the same time, the Financial Times pointed out that Uber this step is actually inferior to a competitor of the Russian market after years of hard competitive struggle. The newspaper also called it is the solution to Uber first strategic step after the scandalous resignation of service founder Travis Kalanick.
CNBC saidthat the deal Uber and “Google of Russia” had “a hand” he Kalanick, who still serves on the Board of Directors of the company and owns shares in Uber, and its ally — the former chief Director, business development at Uber, Emil Michael (left the company in June).