Russia's Yandex Restructures JV Ownership With Uber In $1bn Deal
Russian internet giant Yandex is to purchase Uber's stakes in their joint foodtech, delivery and self-driving businesses, and increase its stake in a mobility-focused joint venture as part of a $1 billion deal.
The company added that it had received a call option to purchase Uber's remaining stake in mobility businesses for up to $2 billion.
The restructured joint venture MLU will continue to focus on mobility businesses, including ride-hailing and car sharing, Yandex said.
Under the agreement, Yandex will receive Uber's 33.5% indirect interest in Yandex.Eats, Yandex.Lavka and Yandex.Delivery as well as 18.2% interest in Yandex Self-Driving Group (SDG), giving Yandex 100% ownership in all businesses.
'Strategic Management Flexibility'
"The consolidation of these businesses puts us in a great position to further increase strategic management flexibility, while creating new substantial growth potential for our businesses and cross-platform consumer benefits over the years to come," said Tigran Khudaverdyan, deputy CEO of Yandex.
Yandex will also extend its licence for the exclusive rights to use the Uber brand in Russia and several other countries until August 2030, assuming the exercise of the option.
Uber and Russia’s Yandex combined their ride-sharing businesses in Russia and neighbouring countries in 2018.
Recently, the Russian internet giant has announced that its Yango Deli online grocery service has launched in Paris.
In April of this year, the company raised its 2021 revenue forecast, saying that strong growth in newer business areas such as e-commerce and food delivery pushed advertising's share of group revenues below 50% for the first time.