Uber has announced a partnership with Yandax.Taxi, the ride-hailing arm of Russian search engine Yandex.
The deal marks another retreat for the San Francisco, California-based company following its withdrawal from China in August last year, when it folded its Chinese interests in with indigenous rival Didi Chuxing.
In a joint statement, Uber and Yandex, the so-called "Google of Russia", said that the new company will be worth $3.725bn, in a deal expected to close in the fourth quarter.
The as-of-yet unnamed company will operate in 127 cities across six countries across the former Soviet Union (Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan). Uber has agreed to invest $225m in the venture, but Yandex will retain a majority stake of 59.3 per cent, and has invested $100m of its own.
More than 35 million rides were performed in June between the two operations, collecting more than $130m in gross bookings.
"Not only is this partnership good news for our two companies, it's also great for riders, drivers and cities across the region. This deal is a testament to our exceptional growth in the region and helps Uber continue to build a sustainable global business," said Pierre-Dimitri Gore-Coty, Uber's head in Europe, the Middle East and Africa.
As part of the deal, Uber will contribute its food delivery business, UberEATS, to the venture.
"Together, we will continue to build a ride-sharing service that offers a viable alternative to automobile ownership or public transportation," said Tigran Khudaverdyan from Yandex.Taxi.
"Since founding Yandex.Taxi in 2011, we have connected tens of millions of riders and drivers to become the largest and most trusted ride-sharing business in Russia and neighbouring countries. We are excited to expand on this foundation in collaboration with Uber."
The decision comes just weeks after Uber co-founder, Travis Kalanick, resigned as CEO. The company is currently looking to fill the vacancy, and is also searching for a chief financial officer.
In addition to various sexism scandals at the company, some investors have also expressed concern about the company's expenditure and high rate of 'cash burn', which has remained high in recent years.
The company lost close to $1bn dollars in the fourth quarter of 2016, and a further $708m in the first three months of this year.
Wikileaks Vault 7 suspect Joshua Schulte fingered by FBI after re-using smartphone passwords on his PCs
Joshua Schulte indicted on 13 counts relating to Vault 7 leaks and trading in images of child abuse
Alexa for Hospitality will link with existing systems so guests can order room service and control the air con
Massive volcanic eruptions could have warmed Mars' surface sufficiently for oceans to form
Examination of fruit flies' brains generated more than one billion data points for scientists to analyse