Yandex and Uber merged their taxi businesses
In February, Yandex and Uber completed a transaction to combine their ride-hailing businesses in Russia and neighboring countries under a joint venture. In addition to contributing to its operations, Uber invested $225 million in cash in the joint venture while Yandex invested $100 million in cash. The Yandex-Uber joint venture is valued at more than $3.8 billion and owned 59.3% by Yandex and 36.9% by Uber. Employees of the group own the remaining stake.
Food ordering services also combined
The Yandex-Uber ride-hailing joint venture combines their online food ordering and delivery services in the markets where they have merged their operations. Uber offers Uber Eats in the food delivery market, while Yandex offers FoodFox, which it acquired late last year. Yelp (YELP) exited the food delivery business last year by selling its service, Eat24, to GrubHub (GRUB) for about $290 million. Digital payments processor Square (SQ) said its food ordering and delivery service, Caviar, was a growth driver in 4Q17. Square’s revenue grew 36% YoY in the quarter.
Goldman Sachs predicts that the global ride-hailing industry will expand to reach $285 billion in annual revenues by 2030. The industry was estimated to be worth $36 billion in 2017.
Ride-hailing revenue increased more than 190%
The ride-hailing service is Yandex’s (YNDX) fastest-growing business. Yandex.Taxi, as the business is known, registered revenue growth of 191% YoY (year-over-year) to about $13.1 million in 4Q17. Yandex.Taxi is part of Yandex’s non-advertising segment recorded as Other revenues, for which revenue increased 150% YoY to $48.4 million in 4Q17.