Russian tech company Yandex announced on Thursday it is merging its taxi service Yandex Taxi with Uber.
The new company, called NewCo, will take control of both companies’ services in Russia, Kazakhstan, Armenia, Azerbajdzjan and Georgia.
Yandex shares at Moscow Stock Exchange skyrocketed almost 20 percent after the merger was announced. NewCo will keep both brands operational, but unveiled plans to introduce a common technological platform to drivers.
Together, Yandex and Uber will account for roughly 35 million trips per month with a monthly revenue of 7,9 billion roubles ($131 million) in all six countries.
“Partnership with Uber will help us broaden the quality of our service and the geographic scope of our business,” says Tigran Khudaverdian, the director of Yandex.Taxi, director of the joint venture.