(Bloomberg) — Yandex NV, Russia’s largest technology company, received local antitrust approval to merge its ride-hailing business with Uber’s in the country, the Russian Federal Antimonopoly Service said Friday.
Ordering rides from smartphone apps is driving growth in the Russian taxi market but the Yandex-Uber joint venture is required not to prevent its passengers, drivers and partners from working with other ride-hailing services, the FAS said in a statement.
"Currently, there is a tendency in the market to consolidate existing players and strengthen their role in the market," Anatoly Golomolzin, the deputy head of the FAS, said in the statement. "At the same time, we understand that it’s important to ensure the development of competition in such markets even at the very first stage, so that all market participants are on an equal footing."
Uber Technologies Inc. agreed in July to merge its operations in Russia and neighboring ex-Soviet republics into a joint venture, 59.3 percent owned by Yandex and 36.6 percent by Uber. This became the San Francisco-based company’s second retreat from a major market after it ceded China last year in exchange for a minority stake in rival Didi Chuxing.
The merger is expected to be completed in January 2018. After the closing of the transaction, consumers will be able to use both the Yandex.Taxi and Uber apps to book rides, while the driver-side applications will be integrated so they’re able to accept bookings from either service.
Yandex shares rose as much as 3.5 percent in Moscow trading. Other taxi services operating in Russia include Vezet backed by UFG Private Equity, Taxi Maxim and Israel’s Gett Inc.
Yandex intends to move forward with an initial public offering of its recently enlarged taxi business by the first half of 2019.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
