After admitting defeat in the Chinese market via a stunning – and unexpected – merger with Chinese ride-hailing service Didi Chuxing, the role of Uber in other global ride-sharing markets began to be questioned by a hefty portion of the members of the shared space between the tech and automotive industries. However, with the announcement of a new merger with rival Yandex.taxi in the greater Russian marketplace, Uber's role in the near future in markets abroad appears to not be in question any longer.
In terms of the specifics of the merger, Bloomberg's Eric Newcomer reports that Yandex will invest $100 million into this venture and assume 59.3 percent of ownership of this new enterprise, while Uber will pony up a significantly higher investment amount ($225 million) in return for a smaller portion of ownership (36.6 percent). In other words, Uber is once again remaining in one of the most important global markets in name only as it continues to retract and rescind operations abroad amid mounting losses and internal scandal after scandal.
Going a step further, if this deal appears to favor one party over the other, then your intuition is dead on the money. Aside from having a controlling interest in this joint venture, Yandex will also install its current head of Yandex.taxi, Tigran Khudaverdyan, as the new chief executive officer (CEO) of this yet-to-be-named combined enterprise. In this role, Khudaverdyan will oversee operations in not only Russia, but also Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia.
Will this move help the largest ride-sharing service provider in the United States circle the wagons and regain its footing after dealing with a deluge of negative internal and external developments? What about the role this merger will be play in Uber's decision to retreat or expand in India, Southeast Asia, and other important, yet uncertain, global marketplaces?
For answers to these questions, and a complete breakdown of all of the particulars of the new combined Yandex.taxi-Uber organization, go ahead and give the link below a click for the full scoop from Bloomberg's Eric Newcomer.