$I BILLION ACQUISITION DEAL OF UBER BY YANDEX FROM ITS JONT VENTURES
By R. F. Diete-Spiff, Esq.
The sum of $1 Billion will be paid by Yandex a Russian Internet Company to acquire Uber for its joint ventures in food, groceries deliveries, logistics and autonomous driving. The cash deal permits control of Yandex.Eats, Yandex.Lavka, Yandex.Delivery and rapid grocery delivery service as well as autonomous vehicle division held separately. Going by the sale, its basis is on building up on food and grocery deliveries based on the index as seen during the COVID-19 era and the growth of its online shopping and entertainment streaming offerings is also fast rising at an alarming rate.
By the end of the second quarter of 2021, Yandex had $3 Billion in hand and deposit and also one of the Russian companies to set up china-style eco-systems. The scheme provides tech giants with an array of different products within ‘superapps’. Furthermore, small banks were bought by Wildberries and Ozon Holding Plc which happen to be Yandex and Russia’s largest ecommerce companies which they tend to use in expanding their financial services to accommodate its services.
On the other hand, Russia’s largest lender Sberbank PJSC have received a robust investment from Yandex Competitor Mail.ru via a partnership including opposition from rival taxi and food apps, citymobi and delivery club even though there have been issues regarding controversies over its direction. The Revenue index at Yardex.Eat saw a massive increase to 93% in the past quarter despite its loss which also tripled within the same period. In furtherance to the above, Yandex would be given an additional 4.5% stake in MLU having merged its taxi business with Uber in 2018 for a deal at the value of $3.8 Billion.
However, Yandex would have to buy Uber’s remaining 29% for $1.8 Billion which is the least amount and which said sum could rise to $2 Billion by the end of the period. Its rights were further extended to the Uber brand in Russia and quite a number of countries until 2030. This deal is expected to be closed by the end of the fiscal year having been accepted by Yandex and Uber boards. The restructuring of the MLU ride-hailing and car sharing joint venture, which includes Yandex.Taxi, will see Yandex own 71% while Uber’s stake falls to 29% from 33.5%,
However, we propose that restructuring will allow assets to interact more closely with Yandex Market and strengthen each other as it will also extend its licence for the exclusive rights to use the Uber brand in Russia. As a result of the deal, the venture has further expanded into other businesses such as food-delivery and autonomous vehicles. The deal would lead to quicker decision-making and “closer integration between complementary food tech initiatives within the Taxi division and Yandex Market eCommerce,
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