Uber and Yandex Merger Gets Nod From Russian Regulators

Uber and Yandex’s ride-sharing businesses got the nod on Friday (Nov. 24) to merge operations in Russia.

Reuters reported that Russia’s Federal Antimonopoly Service (FAS) ruled the operations can merge, but said the combined company can’t prevent drivers from becoming employees of competing ride-hailing services. They also have to disclose to users the legal entity that is providing the rides.

Uber is investing $225 million in the joint venture; Yandex will kick in $100 million. Yandex will have 59.3 percent ownership. In July, the two announced plans to combine their businesses, covering 127 cities in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan. Yandex and Uber have also obtained approval from Belarus, and are awaiting a decision by the regulator in Kazakh.

The companies claim that integrating both driver apps will result in shorter wait times for rides. Users will still be able to use either app.

When announcing the deal back in July, Uber called the merger with the Russian car-sharing firm an exciting opportunity in a unique situation, and said the operations in other countries will not be affected by it.

“The new company’s goal will be to serve the needs of riders, drivers and cities as we develop a fast-growing, sustainable ride-sharing, food delivery and logistics business in the region,” said Uber in the blog post. “Combining Yandex’s local expertise in search, maps and navigation with our leading global experience in ride-sharing will enable us to build the best local services and provide a credible alternative to car ownership across the region. For the foreseeable future, the Uber and Yandex brands and rider apps will continue to operate, while the driver apps will be integrated after the transaction closes. The transaction is subject to regulatory approvals.”

The goal is to close the deal in January of 2018, noted the Reuters report.