On-demand transportation giant Uber Its name was made in part by strongly entering new markets on the path of organic growth, but recently, it has shown itself more suitable for the concept of expansion through acquisition. Today, MLU, Last ride Uber and deliver JV food with Yandex (by Yandex Taxi) covering cities in Russia and surrounding areas, Announced It has acquired Vezet, a smaller competitor operating in 123 markets in the same region, at an estimated price of $ 204 million.
In addition, MLU said it would invest another 8 billion rubles ($ 127 million) in Russian regions over the next three years, half of them towards safety and security – including driver training – and half to "support regional drivers and taxi fleet companies." (The latter can be in the form of special incentives to continue encouraging them to drive with MLU to others, and other loyalty programs.)
Current shareholders of Vezet will receive new shares in MLU, representing up to 3.6% of the company's issued capital at closing, with up to $ 71.5 million in cash, "according to Vezet's meeting of certain performance and integration objectives, the companies said. Part of this integration will involve moving all Vezet to a single platform with MLU.
To illustrate, companies did not disclose the approximate valuation of the transaction based on these percentages, but as a sign, when Uber last MLU value before inserting genericThe figure was estimated at $ 3.68 billion. This would put stocks down 3.6%, just under $ 132.5 million, valuing the Vezet deal at $ 204 million. (This assumes that the MLU valuation, prior to this acquisition, has not changed in the last three months.)
The deal will also reduce slightly In Uber Share in the JV: MLU notes that after the completion of the acquisition, Yandex NV will own 56.2% of the MLU, Uber will own 35.0%, with employees owning 5.3% (part of the equity incentive plan).
This step talks about the inevitable merger that has occurred and will continue to occur in the resale market. Vezet (which has a nice dual meaning in Russian: leadership, and lucky ones – or perhaps more accurately, things are going your way) – is in itself a combination of some smaller companies, and today works on services under four brands: Vezet, Taxi Saturn, And Red Taxi.
It will also help MLU potentially remain in the markets where it has encountered some potential problems in the past. In Kazan, for example, some were Called the government to ban MLU (Specifically Yandex.taxi). This has not been achieved, although the likelihood of such legal action may spread if it engages a local operator that has a more consistent market rise.
The Vezet business model is designed to provide a platform for current individuals and fleets, which can be used to guide travelers looking for a flight from A to B. Like Uber and many others in this business, Vezet uses an application-based interface application, but because of its presence and how it covers markets Where the proliferation of smart phones is not as widespread as in mature markets, it also allows people to request horseback riding through call centers. This transaction will include all Veze assets.
While Uber originally formulated an empire by entering the markets on its own business and building a business from scratch (using tens of billions of dollars in VC funds to do so), in recent years it has formed joint regional ventures, including the integration of its operations in China Didi and Southeast Asia with the grab along with Russia moving with Yandex. I have also started to acquire companies to move to new markets, such as the recent deal Buy Careem for more than $ 3 billion to create great magnificence in the Middle East.
The acquisition is expected to end at the end of the year, the companies said.