UPDATE: Yandex.Taxi, Uber have no plans to revise tariffs after merger

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MOSCOW, Jul 14 (PRIME) -- Online taxi hailing services Yandex.Taxi and Uber will not revise the tariff policy after a merger, the companies’ officials said on Friday.

“We have no plans at the moment to change the tariffs,” a spokesperson for Uber said.

A Yandex official said the Internet company does not expect any dramatic changes in tariffs because of the deal.

Uber and Yandex will contribute U.S. $ 225 million and $100 million respectively to the new company, which is valued at $3.725 billion. After the deal is completed, Yandex will have 59.3% of the new company, Uber 36.6%, and employees 4.1%.

Dave Waiser, founder and CEO of the companies’ archrival Gett, said earlier on Friday on his Facebook page that the merger of Yandex.Taxi and Uber will cut the number of competitors for Gett.

“I wanted to congratulate Yandex on an important and good deal. For Gett, it means one competitor less. For clients, the choice has become easier: Gett means the quality of drivers, and Yandex means the quantity,” Waiser said.

“For drivers, now Gett will be the only alternative to Yandex that in the long term will result in all drivers having both applications, as it was the case with Uber and Lyft in the U.S.”

The merger may also imply an end to a price war between Yandex and Uber, which could hike prices and return to more stable margins, Waiser said, adding that Russia accounts for 25% of Gett’s business.

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