Moscow-based tech giant Yandex and San Francisco-based Uber will form a new company that will also include the UberEats food-delivery service. The new company will cover Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan.
Uber will make a $225 million cash investment in the new company.
"Combining our business with Yandex will give us a very significant stake in a new company which will initially serve more than 35 million trips each month and operate in an incredible 127 cities in six countries across the region," Pierre-Dimitri Gore-Coty, head of Uber's business in Europe, the Middle East and Africa, said in Uber's blog post.
In a Yandex.Taxi blog post, CEO Tigran Khudaverdyan said he will serve as CEO of the new company.
Yandex and Uber did not immediately respond to a request for comment.