Yandex Could Buy Food Ordering Service Delivery Club

Russian search engine Yandex is considering buying food delivery service Delivery Club, which competes with Yandex Eats, its own delivery platform.

According to published reports Tuesday (July 5), Delivery Club’s owners are seeking a buyer and discussing that sale along with the sale of some of Yandex’s media properties. The deal also reportedly hinges on VK and Sberbank, Delivery Club’s joint owners, agreeing on who will buy them out of that joint venture.

In April, Yandex and its fast grocery unit Yango Deli were re-examining the company’s strategic priorities in the United Kingdom and France. That meant Yango Deli ending its operations in France and exploring the sale of its British division.

Read more: Yandex Fast Grocery Delivery Business Exploring Options in Europe

“Yango Deli is gradually suspending its ultrafast grocery delivery operations in Paris,” a Yango Deli spokesperson said at the time. “This was a pilot project with a small number of dark stores, and it has underperformed our internal targets.”

The Delivery Club news comes as European food and grocery delivery services are struggling with inflation. Late last month, Just Eat Takeaway, the region’s largest online meal ordering service, announced it was raising the commission it charges to restaurants by 1%.

See more: Citing Inflation, Just Eat Takeaway Hikes Commissions

“I can confirm that in response to rising inflation and higher operational costs, we are increasing our commission rates for the first time in five years in certain European markets,” a spokesperson for the Dutch company said.

In May, grocery delivery service Gorillas laid off 300 employees, cutting its administrative staff in half. Those job cuts were among several to hit the industry that month, such as U.K.-based ultrafast grocer Zapp, which announced it would lay off 200 to 300 workers.

Read more: German Delivery Service Gorillas Cuts 300 Jobs

Meanwhile, Turkey-based ultrafast grocer Getir announced in late May it planned to let go of 14% of the staff at its global headquarters.

See more: Pink Slips Mount as Ultrafast Grocers Confront Global Challenges