Russian tech company Yandex announced on Thursday it is merging its taxi service Yandex Taxi with Uber.
The new company, called NewCo, will take control of both companies’ services in Russia, Kazakhstan, Armenia, Azerbaijan and Georgia.
Yandex shares at the Moscow Stock Exchange skyrocketed almost 20 percent after the merger was announced. NewCo will keep both brands operational, but unveiled plans to introduce a common technological platform to drivers.
Together, Yandex and Uber will account for roughly 35 million trips per month with a monthly revenue of 7,9 billion rubles ($131 million) in all six countries.
“This combination greatly enhances Yandex’s ability to offer better quality service to our riders and drivers, to quickly expand our services to new regions, and to build a sustainable business,” Tigran Khudaverdian, head of Yandex.Taxi and director of the joint venture, said.
Source : The Moscow Times