Russian regulator says да to Uber/Yandex merger
Uber gets a big slab of combined company, Russia and region get UberEATS
The Federal Antimonopoly Service of the Russian Federation has given its approval to the combination of Uber's services with those of local Google analog Yandex.
The merger was floated in July 2017, with Uber saying the merger would be good for all parties.
And well it may: Russian economic policy favours local – and controllable - technology companies the lion's share of local business. Uber could have kept going head to head with Yandex, but instead chose to stump up US$225m for 36.6 per cent of a joint venture run in which Yandex will have a controlling 59.3 per cent stake. Doing so cemented Uber's presence in Russia, and several satellite states, without having to compete hard in a tricky jurisdiction.
The Federal Antimonopoly Service of the Russian Federation revealed its approval with a statement that said the ride-sharing market is growing fast and that this deal represents greater aggregation of such services, rather than a reduction in competition.
The deal's therefore expected to conclude soon, with combined operations to commence in early 2018. Both companies will continue to operate and their respective apps will be able to hire drivers from each company in Russia and even Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia.
UberEats is also covered by the deal. ®