Uber Technologies Inc. is looking to expand its coverage in Russia and parts of Europe and Asia through a $3.72 billion joint venture announced today with Russian internet giant Yandex Europe AG, which is sometimes called the “Google of Russia.”

Uber will be merging with Yandex in six different countries, including Russia, Azerbaijan, Belarus, Kazakhstan, Armenia and Georgia. Uber and Yandex will be forming a standalone company in these regions, with Uber holding a 36.6 percent ownership stake that will be worth nearly $1.4 billion. Uber is also making a $225 million cash investment in the new venture, while Yandex is contributing $100 million.

Yandex already operates a ride-hailing service in Moscow and several other Russian cities, but this service will now merge with Uber’s services under the new company. According to Uber, the new partnership will allow it to operate in 167 cities while serving roughly 35 million trips each month. After the deal goes through, riders will still be able to order rides from either the Uber or Yandex Taxi apps, but the driver apps will be integrated under the merger. Uber EATS, Uber’s food deliver service, will also be joining with Yandex under the combined business.

“The new company’s goal will be to serve the needs of riders, drivers and cities as we develop a fast-growing, sustainable ridesharing, food delivery and logistics business in the region,” said Pierre-Dimitri Gore-Coty, head of Uber’s business in Europe, the Middle East and Africa. “Combining Yandex’s local expertise in search, maps and navigation with our leading global experience in ridesharing will enable us to build the best local services and provide a credible alternative to car ownership across the region.”

Gore-Coty called the deal “a testament to our exceptional growth in the region,” and he said that “all full time Uber employees in the countries involved will be part of the new company,” which suggests that no one will be laid off as part of the new venture.

The merger has not been finalized yet and is still subject to regulatory approval, but Uber expects the deal to close by the fourth quarter of this year. In addition to its sizable stake in the new venture, Uber will also hold three of the seven seats on the new company’s board, but the company will be headed up by Tigran Khudaverdyan, who currently serves as the chief executive of Yandex Taxi.

Photo by automobileitalia