Yandex, the NASDAQ-listed Russian search giant, and Uber announced today the completion of the merger of their respective ride-sharing and food delivery businesses in Russia and neighboring countries, EWDN reported.
The deal, announced in July last year, was approved by the Russian antimonopoly authority in November.
At closing, Uber invested $225m and Yandex invested $100m in cash in the combined company, the valuation of which exceeds $3.8bn on a post money basis, according to Yandex’s press release.
The combined business has more than $400m in cash on hand at closing. It is now held approximately 59.3% by Yandex, 36.9% by Uber, and 3.8% by employees of the group on a fully diluted basis.
In a practical perspective for end users, the Yandex.Taxi and the Uber apps will operate as before. Users of both apps will enjoy “seamless global roaming” across the two platforms: for example, “a Uber user arriving in Moscow from Paris will be able to order a Yandex.Taxi straight from their Uber app,” according to Yandex.
The size of the Russian taxi market is subject to various estimates, from $3-4bn (Gett) to more than $8.4bn in 2016 (VTB Capital data cited by Yandex).