Yandex and Uber to merge in Russia and five Eastern European countries

Frankfurt: Yandex, the "Google of Russia", and Uber have agreed to merge their ride-sharing businesses in Russia and five eastern European markets with Yandex as leading partner, the companies said on Thursday, marking another pullback from Uber`s breakneck global expansion that comes a year after its exit from China.

In a joint statement, Yandex and Uber said they will join forces in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan to create a new company operating in 127 cities, in a deal expected to close in the fourth quarter.

San Francisco-based Uber has agreed to invest $225 million while Yandex will invest $100 million into a new joint company in which Yandex will own 59.3 percent, Uber holds 36.6 percent and 4.1 percent by employees on a fully diluted basis.

As part of the deal, Uber will contribute its UberEATS food delivery business in the six-country region to the new venture. Diversified internet giant Yandex is the dominant player in Web search, maps and mobile navigation in the region.