(Bloomberg) — Yandex NV, Russia’s largest search engine, bought local food-delivery firm Foodfox to expand its tie-up with Uber Technologies Inc. in the country, according to a statement Monday.
Uber agreed in July to merge its business in Russia and CIS with Yandex into a $3.7 billion joint venture to be controlled by the Russian company, as it battles across the globe with local car-sharing and food-delivery startups. The deal, approved by the Russian antitrust service and set to close in January, also included UberEats.
The venture’s food-delivery division will be headed by Foodfox founders Maxim Firsov and Sergey Polissar, Yandex said in the statement. Foodfox works with over 2,000 restaurants in Moscow.
UberEats says it offers food from “several hundred” places in Moscow and delivers from McDonald’s under a global contract. That compares with 6,500 restaurants, including Burger King, Dunkin’ Donuts, and Subway, that work with Mail.ru Group Ltd.’s Delivery Club, the largest service in the market.
Yandex shares rose as much as 1.1 percent in Moscow.
Russia’s food-delivery market is worth $1.3 billion, according to Mail.ru, which acquired Delivery Club a year ago from Germany’s Rocket Internet SE for $100 million. Foodfox, which says it’s the second-largest player in Moscow, is seeking regional expansion, using Yandex’s online advertising power.
Yandex didn’t disclose how much it paid for Foodfox in its statement. In November, the RBC news website reported the price tag was less than $10 million.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
