Russian digital giant buying Uber Russia

RUSSIA / FSU POLITICS - In Brief 31 Aug 2021 by Alex Teddy
On August 31 it was announced that Yandex is buying the ride hailing service for USD 1 billion. Yandex and Uber had been cooperating. Yandex also delivers food and has a car sharing service. Yandex Lavka is the grocery delivery arm of the company. Uber has a 33.5% stake in Yandex Lavka and an 18.2% stake in the self-driving cars arms of Yandex.Yandex is working on autonomous vehicles. The company also has a grocery delivery service in France and Israel. That is partially because of the large Russian community in Israel. Yandex aims to launch in the UK in late 2021.In 2018 Yandex and Uber merged their ride hailing services in 2018. They aim to merge in the rest of the former USSR.Yandex has a 71% stake in MLU - this is a joint venture combining Yandex Taxi and Yandex Drive (car sharing). Yandex Taxi has been Russia's biggest ride hailing service for several years. Yandex and Uber agreed that Yandex can purchase the 29% that still belongs to Uber for USD 1.8 billion by the end of 2023. The value of the ride hailing business is estimated at USD 6 billion. Yandex is Russia's Google. It is the highest valued tech company in the country. It is the market leader in online adverts, online searches, e-commerce and video streaming. The Yandex-Uber deal has been approved by both companies. It is anticipated that it will be accomplished by the end of 2021. On August 31 Yandex shares went up 1.4% because of the news. Yandex has a market capitalization of about USD 26 billion. It is Russia's most valuable publicly traded internet company. The company has sometimes been pressured by the state as the state demands more control over the internet. A 2019 law gives the state control over...

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