Yandex Buys Uber Out of Food-Delivery, Self-Driving Venture
[Stay on top of transportation news: Get TTNews in your inbox.]
Yandex NV is buying out Uber Technologies Inc.’s shares in its food tech, delivery and self-driving businesses in an all-cash deal valued at $1 billion.
The Russian internet giant will own 100% of Yandex.Eats, Yandex.Lavka and Yandex.Delivery, as well as a self-driving venture that operates cars and drones, according to a statement Aug. 31.
Both boards have approved the deal, which is expected to close by year-end.
Yandex had been looking to buy out Uber for more than a year as the coronavirus pandemic spurred rapid growth in the Russian market for delivery and food services. The industry has attracted large investments from competitors, including online retailer Ozon Holding Plc and Russia’s biggest bank, Sberbank PJSC.
As part of the deal, Yandex will boost its stake in a ride-hailing and car-share joint venture it operates with Uber to 71% from 66.5%. The Russian company also will receive a two-year call option to acquire Uber’s remaining interest in that business for as much as $2 billion.
“As a result of the deal, Yandex expects to accelerate the pace of business development in the fast-growing e-commerce and food-tech market through tighter integration of services and simplification of management processes,” the statement said.
Uber merged its operations in Russia and neighboring countries with local leader Yandex in a deal that closed in February 2018 and valued the unit at $3.8 billion. Since the deal, the venture expanded into other businesses such as food-delivery and autonomous vehicles.
Want more news? Listen to today's daily briefing below or go here for more info:
