Russian IT giant Yandex has handed over a billion dollars as part of the deal to buy out US ride-hailing service Uber’s stake in several of their joint ventures, squeezing the American company out of ex-Soviet markets, Bloomberg reports.
Russia’s largest technology company has sent shares soaring after announcing it will take full control over restaurant courier app Yandex.Eats, grocery delivery service Yandex.Lavka, and Yandex.Delivery as well as of Uber’s share of driverless car business Yandex Self-Driving Group.
Yandex is now full owner of four separate businesses in which the two giants had previously both held stakes in exchange for $1 billion in cash and also plans to also increase its share to 71% from 66.5% in a holding company overseeing a series of mobility ventures.
Moscow-based Yandex will continue to operate services under Uber’s branding in Russia and a number of other countries until 2030 as part of the deal that also gives the Russian company two year call option to acquire Uber’s remaining interest in their ride-hailing and car-sharing business.
Yandex Deputy CEO Tigran Khudaverdyan pointed that the consolidation of these businesses gave them opportunity to create new substantial growth potential and increase the strategic management flexibility of their businesses.
Meanwhile, the Russian company announced one of its first plans for major expansion into a Western European capital, offering express food deliveries through its Yango Deli app. Croissants and fromage to nearly one million residents of Paris.