Uber is promoting stakes in a number of Russian companies for $1 billion

Uber is promoting shares in a number of joint ventures that it has with Russia’s Yandex for $1 billion in money.

The deal, introduced on Tuesday, will see Moscow-headquartered Yandex purchase out Uber and achieve full management of meals supply service Yandex.Eats, grocery supply service Yandex.Lavka, and logistics agency Yandex.Supply.

Uber at present has a 33.5% stake in every of the businesses.

Yandex, whose search engine is extra broadly utilized in Russia than Google search is, stated additionally it is taking full management of the Yandex Self-Driving Group, of which Uber at present owns 18.2%. 

 “Since we began our partnership with Uber in 2018, we have been in a position to create and quickly develop plenty of profitable companies — all of them are extremely synergetic to our e-commerce initiative and to the whole Yandex ecosystem,” stated Tigran Khudaverdyan, deputy CEO of Yandex, in an announcement.

“The consolidation of those companies places us in an amazing place to additional enhance strategic administration flexibility, whereas creating new substantial progress potential for our companies and cross-platform client advantages through the years to return, permitting us to unlock new sources of worth for our shareholders.”

The deal may also see Yandex take an extra 4.5% in MLU, which is the three way partnership it arrange when it merged its taxi enterprise with Uber in 2018.

Uber didn’t instantly reply to a CNBC request for remark.

The coronavirus pandemic has allowed supply companies to flourish as lockdowns prevented folks from getting into bodily shops.

Greg Abovsky, COO and CFO of Yandex Group, advised CNBC final yr that Yandex.Lavka was six occasions greater in Could 2020 than it was in January 2020.

Yandex, which had virtually $three billion handy on the finish of the second quarter, can be increasing its on-line purchasing and streaming companies.

It’s one among a number of Russian corporations aiming to evolve right into a Chinese language-style tremendous app that provides customers a plethora of services and products.

Yandex purchased a small financial institution earlier this yr because it appears to be like to broaden into monetary companies, as did Russia’s two largest e-commerce corporations: Ozon and Wildberries.