Page 25 - ARUBA TODAY

BUSINESS Friday 14 July 2017
A25

Uber cedes control in Russian market with Yandex tie-up

Yandex will own 59 per- really making headway
cent, Uber roughly 37 per- against the local competi-
cent, and employees the tors.”
rest. The CEO of Yandex At this stage of its devel-
Taxi, Tigran Khudaverdyan, opment, the money-losing
will become the chief ex- Uber is looking to move
ecutive of the new com- to profitability, reviewing
bined company. regions to see if there are
San Francisco-based Uber prospects for making mon-
will invest $225 million in the ey. If the prospects aren’t
new company and Yan- good, Uber is likely to get
dex $100 million, putting its out, Dawon said.
value at over $3.7 billion. In the Yandex case, Uber
The companies said that will exit “in a dignified way”
together they deliver over with the 37 percent stake
35 million rides a month, in the new company. Uber
with $130 million in gross had invested $170 million in
bookings in June. Yandex is Russia and is adding $225
the bigger company, with million to the new com-
roughly the twice the busi- pany. So for about $400
ness Uber currently has in million, it’s getting a stake
the region. in Yandex that’s worth over
In both Russia and China, $1 billion, Dawson said.
This photo shows the exterior of the headquarters of Uber in San Francisco. Uber is ceding control Uber was having trouble Shares in Yandex jumped
of its operations in Russia by agreeing to merge its ridesharing business in the country and five
other ex-Soviet republics with Yandex, the Russian search-engine leader that also runs a popular competing against larger 15 percent on the Moscow
taxi-booking app., statement released by Yandex on Thursday July 13, 2017 said. ride services that have the stock exchange on news
(AP Photo/Eric Risberg) advantages of being the of the deal. The company
hometown company and is one of Russia’s most suc-
MOSCOW (AP) — Uber is also runs a popular taxi- Yandex said in a statement knowing cultural differenc- cessful Internet enterprises,
ceding control of the Rus- booking app. on Thursday that Uber and es, said independent tech- accounting for some 65
sian market by agreeing For Uber, the deal marks Yandex Taxi would com- nology analyst Jan Dawson percent of all searches and
to merge its ride-hailing the exit from another big bine into a new company of Jackdaw Research in operating popular maps
business in the country market after it sold its oper- in Russia as well as in Azer- California. “It’s like compet- and public transit apps.q
with Yandex, the Russian ations in China last year to baijan, Armenia, Belarus ing with Google in the U.S.,”
search-engine leader that local rival Didi Chuxing. and Kazakhstan. he said. “They just weren’t

Tiffany hires Diesel exec in bid to regain luster

NEW YORK (AP) — Tiffany is clothing company Diesel. riod for retailers.Shares of percent, to $93.97 in late
taking another shot at re- Bogliolo is expected to take Tiffany added $1.51, or 1.6 afternoon trading.q
viving its luster, naming a over the CEO post at Tif-
long-time Bulgari executive fany by Oct. 2. He will also
and Diesel CEO as its top become a board member.
executive. Tiffany & Co., based in
The company had also New York, has wrestled with
hired Frederic Cumenal to weak sales as millennials
revitalize the brand, but ran spend money elsewhere
out of patience in February and competition intensi-
after only two years. fies from online players like
Alessandro Bogliolo, 52, Amazon and Blue Nile. The
spent 16 years at the luxury luxury jeweler reported
jewelry and watch compa- lower-than-expected sales
ny Bulgari and had most re- during the most recent holi-
cently been CEO of Italian day season, a critical pe-