Yandex Buys Uber’s Russian
Businesses for $1B
September 02, 2021
and MOEX one of Europe's largest internet companies and the leading search and
ride-hailing provider in Russia, has entered into a binding agreement with Uber
to restructure the ownership of their joint ventures, MLU B.V. (“MLU”) and
Yandex Self-Driving B.V. (“SDG”).
Under this agreement, for total consideration of $1.0 billion in cash, Yandex
Uber’s 33.5% indirect interest in Yandex.Eats, Yandex.Lavka and
Yandex.Delivery, giving Yandex 100% ownership in all three businesses;
Uber’s 18.2% interest in Yandex Self-Driving Group (SDG), giving
Yandex 100% ownership in the business; and
An additional 4.5% interest in the newly restructured MLU, which
will focus on mobility businesses, giving Yandex and its employees a total of
approximately 71% ownership in the joint venture.
approximately 68.3% ownership of Yandex and management in the
joint venture; and
approximately 2.8% reserved for employee equity incentive
program of MLU.
In addition, Yandex receives a two-year American call option to
acquire the remaining 29% of Uber’s interest in the newly restructured MLU at a
strike price of $1.8 billion, subject to agreed increases over the option period
-- going up to approximately $2.0 billion if exercised in September 2023. The
newly restructured MLU will continue to focus on mobility businesses, including
ride-hailing and car-sharing.
Yandex will also get an extension of the current license for the exclusive right
to use the Uber brand in Russia and certain other countries until August 2030,
assuming exercise of the option.
“Since we started our partnership with Uber in 2018, we’ve been able to create
and rapidly develop a number of successful businesses -- all of them are highly
synergetic to our e-commerce initiative and to the entire Yandex ecosystem. 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, allowing us to unlock new sources of value for our shareholders,” said
Tigran Khudaverdyan, Deputy CEO of Yandex.
The transaction will be implemented in two stages:
Stage 1: Acquisition of 4.5% of MLU and 18.2% in SDG (expected to be closed
by the end of the third quarter 2021).
Stage 2: Demerger of Yandex.Eats, Yandex.Lavka and
Yandex.Delivery from MLU and subsequent acquisition of Uber’s interest in these
businesses (expected to be completed by the end of 2021).
The transaction has been approved by the Boards of Directors of
Yandex and Uber. Shareholder approval is not required. The approval of Yandex’s
Class A shareholders may be required for the purchase of Uber’s remaining
interest in MLU pursuant to the call option. The transaction is not subject to
antitrust or other regulatory approvals.
Yandex.Eats is Yandex’s food and grocery delivery service, available in over 170
cities in Russia and the CIS and offering 30-60 minute delivery from over 35
thousand restaurants and over 2,900 stores. Yandex.Eats GMV grew 102%
year-on-year in 2020 and 85% year-on-year in 1H 2021.
Yandex.Lavka is Yandex’s hyperlocal convenience store delivery model, offering
15-minute delivery from over 360 dark stores across Russia and Israel. Launched
in late 2019, the service generated 11 billion rubles GMV in 2020 and 12 billion
rubles GMV in 1H 2021.
is the last mile logistics solution, offering on-demand delivery services to
individuals, SMBs and over 20 thousand large businesses across Russia and the
CIS. This asset light business model provides access to the large, fragmented
and fast-growing last-mile delivery market. The business is currently focusing
on same-day and next day delivery products. In June 2021, Yandex.Delivery
completed over 200 thousand daily deliveries and expects to reach one million
daily deliveries in 2023. Yandex.Delivery GMV exceeded 20 billion rubles in 1H
Yandex Self-Driving Group is Yandex’s autonomous driving technology unit, which
has been developing proprietary self-driving technology since 2017. As of today,
Yandex’s autonomous vehicle fleet has 170 cars, which have driven over 8 million
autonomous miles on public roads in various weather and road conditions in three
countries - Russia, Israel and the United States. Since late 2019, the company
has also been developing its own delivery robot, Yandex.Rover, aimed at the
autonomous delivery of small and medium-sized packages. Yandex.Rovers are
already delivering orders from stores and restaurants to customers in Russia and
the United States, where we recently announced partnership with Grubhub to
provide food delivery services in college campuses across the US.