Uber has announced plans to merge with Yandex, the so-called Google of Russia, to launch a new standalone ride-sharing company to target Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia. The deal marks the second time in a year Uber has merged with a major competitor in a foreign country after selling Uber China to local rival Didi Chuxing.

The new entity, which has yet to be named and is subject to regulatory approval, will be worth $3.725 billion Yandex is investing $100 million into the joint venture and will control 59.3% of the company, Uber will be investing $225 million and get a 36.6% share, while employees will own 4.1%.

"This deal is a testament to our exceptional growth in the region and helps Uber continue to build a sustainable global business," Pierre-Dimitri Gore-Coty, Uber's head of business in Europe, the Middle East and Africa, wrote in an email to company employees.

For now, the Uber and Yandex apps will continue to function under their own brand names, while the driver apps will be combined once the deal closes in the last quarter of the year. As part of the deal, Uber will also roll its UberEats food delivery service into the new venture.