The ride-hailing app Uber has been plagued by allegations of gross mismanagement and sexual harassment, but those aren’t its only problems. It’s been having trouble in overseas markets, first in China and now in Russia.
One year after the San Francisco-based company sold its Chinese business to the domestic rival Didi Chuxing, Uber announced on Thursday that it would merge its arm in Russia with Yandex ( YNDX ), the local internet giant. Uber entered the Russian market in early 2014, three years after Yandex launched its own ride-hailing business Yandex.taxi .
As the world’s dominant ride-hailing company, Uber operates in more than 600 cities across the globe. The business faces stiff competition from local players when it comes to price wars, cultural differences and regulatory limitations. Uber’s close races with local rivals
Uber and its local rivals have invested enormous resources into the price war to fight for market share. In the ride-hailing industry, customers and drivers easily switch apps for either lower cost and higher pay. Moreover, the “sharing economy” turns out to involve not only sharing cars, but also customers and drivers. About 20% drivers work for Uber and Yandex at the same […]