Yandex.Taxi Expands into the Regions
July 15 2019 - 3:00AM
Yandex (NASDAQ:YNDX), a technology company that builds intelligent
products and services powered by machine learning, today announced
that MLU B.V. (“MLU”), Yandex’s ride-sharing and food delivery
joint venture with Uber, has agreed to acquire the IP and
call-centers of the Vezet group of companies in Russia.
The current shareholders of Vezet will receive new shares in
MLU, representing up to 3.6% of the issued share capital of the
company at closing, together with up to $71.5 million in cash,
subject to certain operating and integration milestones. Following
the completion of the acquisition, Yandex NV will own 56.2% of MLU,
Uber will own 35.0%, and approximately 5.3% will be held by
employees under the MLU equity incentive plan.
After the closing of the transaction, in addition to the
Yandex.Taxi and Uber Russia apps, consumers will be able to order a
taxi by using Rutaxi and Vezet mobile applications or by using the
Vezet call center. Vezet customers will also benefit from various
MLU technologies that enhance safety and security. Driver-side apps
will be integrated into a single technology platform. As a result,
our passengers will see lower wait times while drivers will benefit
from increased utilization rates. MLU and Vezet will continue to
invest in driver training and support centers, driver loyalty
programs, and other services that support drivers and fleet
management companies.
MLU also plans to invest approximately 8 billion rubles in the
Russian regions over the next three years. Half of this investment
will be aimed at developing the safety and security of our
services, with the other half aimed at supporting regional drivers
and taxi fleet companies.
The companies expect to close the deal by the end of 2019. The
transaction has been approved by the Supervisory Board of MLU and
by the Boards of Directors of Yandex NV and Vezet, and is subject
to approval by the Russian Federal Antimonopoly Service.
About Vezet
The Vezet group of companies was established in May 2017,
following the merger of two local companies, Saturn and Rutaxi. As
of today, its ride-sharing service is available in 123 Russian
cities under the Vezet, Taxi Saturn, Fasten and Red Taxi brands.
Vezet offers flexible terms of partnership to taxi fleet companies
and provides its users with the opportunity to order a taxi either
via a mobile application or over the phone. Call processing takes
an average of 20 seconds, which is one of the best results across
the industry.
About MLU B.V.
MLU was created in February 2018 as a result of the combination
of the ride-sharing businesses of Yandex (NASDAQ: YNDX) and Uber
(NYSE: UBER) across Russia and six neighboring countries. Since
then it has been operating ride-sharing services in Russia and the
CIS under the “Yandex.Taxi” and “Uber” brands. MLU is actively
using its technological and operational expertise to expand into
international markets. As of today, it offers ride-sharing services
in 18 countries including in Eastern Europe, Africa and the Middle
East. MLU also operates its food delivery service Yandex.Eats and
meal kit service Yandex.Chef.
This press release contains forward-looking statements that
involve risks and uncertainties. These include statements regarding
the anticipated closing of the transaction described above, the
successful combination of the two businesses, and the impact of
such transaction on Yandex’s financial results. Actual results may
differ materially from the results predicted or implied by such
statements. The potential risks and uncertainties that could cause
actual results to differ from the results predicted or implied by
such statements include, among others, the satisfaction of the
conditions to closing, the risks inherent in complex business
combinations, and the impact of macroeconomic and geopolitical
developments affecting the Russian and regional economy, as well as
those risks and uncertainties included under the captions "Risk
Factors" and "Operating and Financial Review and Prospects" in our
Annual Report on Form 20-F for the year ended December 31, 2018,
which is on file with the Securities and Exchange Commission and is
available on our investor relations website at
http://ir.yandex.com/sec.cfm and on the SEC website at www.sec.gov.
All information in this release is as of July 15, 2019, and Yandex
undertakes no duty to update this information unless required by
law.
For press enquiries, please contact:
Yandex:Yandex press
office:Ilya Grabovskiy+7 495
739-70-00pr@yandex-team.ru
Yandex.Taxi press office:Vladimir
Isaev, Asya Melkumova+7 495
739-70-00pr@yandex-team.ru
Vezet group press-office:Zoya
Austriyskaya+7 961
538-69-96pr@vezet.ru
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