Yandex 15-Minute Grocery Business Exploring Options in Europe

(Bloomberg) -- Russian internet company Yandex NV’s rapid grocery unit Yango Deli is exploring strategic shifts for its businesses in the U.K. and France, making it the latest Russia-linked food delivery company to face difficulties amid the bevy of sanctions targeting the country.

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Yango Deli is among a spate of companies competing to offer consumers convenience goods and produce in minutes. The company is exploring options including a sale for its U.K. business and the closure of the French unit, according to people familiar with the matter who asked for anonymity because the conversations were private.

“The ultrafast delivery market in London is highly competitive and we see a considerable amount of interest in our business there, including from peers,” a Yango Deli spokesperson said. “However, we can’t provide any further details on this at the moment.”

Yandex is Russia’s biggest technology brand and a dominant web and mobile service provider. However, Russia’s invasion of Ukraine has since led to the company’s stock crashing, debt issues surfacing and a senior executive stepping down who was sanctioned by the European Union. Yandex recently enlisted advisers to help navigate talks with bondholders.

Yango Deli launched in the U.K. with four micro-fulfillment centers across London in October, eventually adding a fifth. That U.K. expansion brought the firm’s global network to more than 400 so-called dark stores, including across France, Israel and Yandex’s grocery delivery service in Russia, according to a statement at the time.

Buyk Corp., another Russia-backed rapid grocery-delivery service, closed and filed for bankruptcy earlier this month, saying fallout from the war in Ukraine had restricted its access to additional funding. Rival Fridge No More shut its operations earlier in March after it failed to gain backing from investors and couldn’t reach a deal to sell some of its operations to DoorDash Inc.

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