Uber, Yandex Ride-Sharing Services Can Merge in Russia, Regulator Rules

Uber, Yandex Ride-Sharing Services Can Merge in Russia, Regulator Rules

Uber and Yandex’s ride-sharing businesses can merge in Russia, anti-monopoly regulator FAS ruled on Friday, but stipulated that the combined company not bar drivers from working for competitors.

Uber and Yandex, often referred to as the “Google of Russia”, announced plans in July to combine operations in 127 cities in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan.

San Francisco-based Uber has agreed to invest $225 million (roughly Rs. 1,454 crores) while Yandex will contribute $100 million (roughly Rs. 647 crores) into a new joint company in which Yandex will own 59.3 percent.

The two companies must allow their partners, drivers and passengers to work for or use competitors’ services and fully inform users of the legal entity providing the service, the FAS said in a statement.

Yandex said consumers would be able to use both Yandex.Taxi and Uber apps, while their driver apps will be integrated, leading to shorter passenger wait times, increased driver utilisation rates, and higher service reliability.

The companies aim to close the deal in January 2018, after the New Year holidays in Russia, Yandex said in a statement.

Moscow-listed Yandex was up 3.47 percent as of 11:23am GMT.

It said the anti-monopoly regulator in Belarus had also approved the deal while a decision by the Kazakh regulator was pending.

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Uber to Merge China Operations With Rival Didi Chuxing: Report

Uber to Merge China Operations With Rival Didi Chuxing: Report

Ride-sharing giant Uber is to merge its China operations with local rival Didi Chuxing, reports said Monday, ending a ferocious battle for market share in the world’s second-largest economy.

The deal will give Uber a 20 percent share in the combined firm, Bloomberg News reported, adding it will be valued at $35 billion (roughly Rs. 2,33,551 crores).

Both companies have spent billions of dollars on subsidies for drivers and passengers, as well as trading vitriolic accusations, as they fought for dominance in the potentially lucrative market.

As reported, the structure of the agreement leaves Didi Chuxing in unquestioned control.

By “shedding its massive losses” in the country Uber will help clear its way to a future flotation, Bloomberg said.

The Wall Street Journal said a formal announcement could come as early as Monday.

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A blog post circulating on Chinese social media purportedly written by Uber CEO Travis Kalanick said: “I’ve learned that being successful is about listening to your head as well as following your heart.”

Both firms were “investing billions of dollars in China and both companies have yet to turn a profit there”, he added.

“Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term.”

China-based spokesmen for both Uber China and Didi Chuxing did not immediately respond to requests for comment by AFP.

The reports come days after Chinese authorities announced new rules governing ridesharing, making clear for the first time that they may operate legally in the country.

The new rules also said ridesharing platforms will be forbidden to operate below cost, possibly restricting their scope to offer subsidies.

Didi, which claims almost 90 percent of the China ride-hailing market, said last month that it had recently raised $7.3 billion – $1 billion of which came from Apple – in one of the world’s largest private equity financing rounds.

As part of the latest deal, Didi Chuxing will invest $1 billion (roughly Rs. 6,673 crores) in Uber, valuing the US firm at $68 billion (roughly Rs. 4,53,792 crores), Bloomberg reported.

Uber has become one of the world’s most valuable startups as it has expanded to more than 50 countries, but it has faced regulatory hurdles and protests from established taxi operators in most locations where it has launched.

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Tags: Apps, Didi Chuxing, Didi Kuaidi, Travis Kalanick, Uber, Uber China

 

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Daimler’s MyTaxi Said to Merge With Hailo to Take on Uber

Daimler's MyTaxi Said to Merge With Hailo to Take on Uber

Daimler will deepen its European footprint in the ride-hailing business when its MyTaxi smartphone app unveils an all-share merger deal with UK rival Hailo as soon as Tuesday, three sources briefed on the matter told Reuters.

It is the latest push by traditional carmakers to enter the taxi ride hailing services market dominated by technology companies likeUber. In similar deals earlier this year, Volkswagen took a $300 million stake in Gett and General Motors invested $500 million into Lyft.

Hailo is strong in the United Kingdom and Ireland, and will combine its business with Daimler’s MyTaxi giving the German carmaker a majority stake in the combined business, two sources, who declined to be named, told Reuters.

The sources declined to be identified because the matter is still confidential.

Sky News was first to report the potential combination of MyTaxi and Hailo.

© Thomson Reuters 2016

Tags: Apps, Daimler, General Motors, GM, Hailo, Lyft, MyTaxi, Uber, Volkswagen
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