Skip to main content

It’s deja vu as Uber forms a joint venture in Russia, much like it did in China

top tech stories uber
Image used with permission by copyright holder
Uber has found a local partner in yet another country, as the transportation giant enters a joint venture with Russia’s largest technology company. Last week, Yandex NV joined forces with Uber in Russia, after receiving approval from the Russian Federal Antimonopoly Service (FAS). The deal harks back to an earlier agreement in China, where Uber partnered with one-time competitor Didi Chuxing.

As part of the new agreement with Yandex, Uber will invest $225 million into what is called the “Google of Russia,” while Yandex will claim a 59.3-percent share in a jointly held company by way of a $100 million investment.

Recommended Videos

“The results of analysis of the market for the organization of information interaction between taxi drivers and passengers showed that the market is in the stage of active growth,” the FAS noted in a statement. “In this case, there will be aggregators providing services through a new convenient way to order a taxi — in the mobile device application.”

This merger will allow Uber and Yandex to work alongside one another in 127 cities across Russia. Customers will be able to hail rides from both Yandex.Taxi and Uber, and the joint venture is slated to begin its operations in January 2018.

“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 has faced quite a number of problems in attempting to expand in international markets, as it attempts to compete with an increasing number of home-grown companies. For example, Go-Jek and Grab in southeast Asia have given Uber a run for its money, and as the company attempts to establish a firmer footprint overseas, it seems as though these sorts of deals may be its best bet.

Of course, Uber has plenty of other issues to worry about, both at home and abroad. The company’s far-reaching data breach has called into question the app’s security, and Uber’s future in London remains an open question.

Lulu Chang
Former Digital Trends Contributor
Fascinated by the effects of technology on human interaction, Lulu believes that if her parents can use your new app…
I reviewed an electric car like it was a phone, and I came to a shocking conclusion
The front of the Cupra Born VZ.

The Cupra Born VZ is not a smartphone — it’s an electric car. Yet, during my time driving it over the last five days, it has reminded me more than once about the device I spend most of my time using and reviewing.

This is not a put-down, nor is it a comment on electric versus combustion-engine vehicles, but more about how I, someone who doesn’t professionally review cars, can still easily recognize what’s good and bad about it. What’s more, the categories I usually break phone reviews down into, and the language I regularly use to talk about them, also neatly applies to the Born VZ.

Read more
Hyundai teases Ioniq 9 electric SUV’s interior ahead of expected launch
hyundai ioniq 9 teaser launch 63892 image1hyundaimotorpresentsfirstlookationiq9embarkingonaneweraofspaciousevdesign

The Ioniq 9, the much anticipated three-row, electric SUV from Hyundai, will be officially unveiled at the Los Angeles Auto Show next week.

Selected by Newsweek as one of America’s most anticipated new vehicles of 2025, the Ioniq 9 recently had its name changed from the Ioniq 7, which would have numerically followed the popular Ioniq 6, to signal the SUV as Hyundai’s new flagship EV model.

Read more
Kia EV5: everything we know so far
Kia EV9 front exterior

Kia is expanding its EV lineup in a big way. The company is currently in the middle of rolling out the EV3, which is now available in Europe and is likely to come to the U.S. next year. Not only that, but it's also prepping the EV4, which it will likely announce more widely in 2025. And it's not stopping there either -- the Kia EV5 is a slightly scaled-back version of the much-loved EV9 SUV, and not only is it a vehicle we're excited about, but it's one that has already launched in Australia.

If the EV5 is anything like the EV9 -- only cheaper -- it'll be an instant success. Curious about whether the EV5 could be your next car? Here's everything we know about the EV5.
Design
Despite the lower number, the Kia EV5 is actually larger than the EV6 crossover — but not quite as large as the EV9 SUV. Kia calls it a “compact SUV” that offersa boxy design that’s similar to the EV9, but with only two rows of seats instead of three.

Read more