The Yandex.Taxi project closed the deal to buy a stake in the food delivery service Foodfox, RBC told an interlocutor in one of the Internet companies. This information was confirmed by the top manager of the company – the partner of Yandex and the ex-employee of this company, who is familiar with the details of the transaction. The latter claims that Yandex.Taxi purchased 100% of Foodfox, paying about 500 million rubles. (about $ 8.4 million). According to the company’s top manager, Yandex’s partner, “the amount of the deal was less than $ 10 million.”
The interlocutor in one of the Internet companies told RBC that the expansion of staff has already begun in Foodfox. “Tigran Khudaverdyan (CEO of Yandex.Taxi.-RBC) personally interviewed several people in managerial positions related to Fudtekh,” he said. On the service to find work HeadHunter now posted 32 jobs in Foodfox – all of them were opened in November.
“Yandex.Taxi” about the purchase of the service has not yet announced, because it wants to develop the product first, and only then it is triumphant to say that it belongs to the project, “says one of the interlocutors of RBC.
Official representatives of Yandex and Yandex.Taxi, as well as Foodfox co-owner Sergey Polissar and representative of the Target Global fund, who previously invested in Foodfox, declined to comment.
Foodfox Food Delivery Service was launched in 2016. Its partners in Moscow are more than 1 thousand restaurants, including “Coffeemania”, Torro Grill, “Jean-Jacques”, I Like Grill, etc. Service was founded by former top managers of the online store Lamoda Sergey Polissar and Maxim Firsov.
According to SPARK-Interfax, the revenue of OOO Bigfood, which runs Foodfox, in 2016 amounted to 8.9 million rubles, a net loss of 40.2 million rubles. The legal entity is 100% owned by the offshore Deloam Management Limited. According to the Cyprus registry, by 32.51% in the offshore belongs to Sergey Polissar and Maxim Firsov, 16.74% are owned by the German companies FJ Beteiligungen Ug and NDT530 UG, by 0.75% by the top managers of Lamoda Burchard Binder and Dominique Picker.
The Cyprus registry does not reflect changes in the shares of offshore owners since June 2016, although the company has since reported on raising funds from outside investors. So, last year Foodfox attracted $ 1 million from venture fund Target Global, co-founders Lamoda Florian Jansen and Nils Tonsen and several business angels. The last deal with Foodfox took place in June this year. Target Global together with a pool of investors, among whom was the co-founder of Carprice Alexander Chernyak, invested $ 5 million in the service. The shares received by investors were not disclosed. An accurate assessment of the Foodfox business during the last round was not reported – to Target Global only stated that it is between $ 10 million and $ 20 million.
Strengthen the direction
The interlocutor of RBC in one of the companies delivering ready meals explained why the price of the purchase of the Foodfox service by “Yandex” was lower than the estimate in the previous round. “The company slowed development, needed money, but because of the low indicators of finding an investor is difficult. As a result, there was no choice but to sell to the “strategist”, he says.
Yandex’s interest in Foodfox may be due to the fact that the company is to develop a food delivery service in the framework of an agreement with Uber, one of RBC’s interlocutors believes. In July of this year, Yandex and Uber announced the creation of a joint venture, which will include businesses of companies commissioned by taxis in Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan. At the same time, the joint structure will also include a service for the delivery of food UberEATS in these countries. The deal is not yet closed, the parties are waiting for approval from the Federal Antimonopoly Service. Uber and Yandex are planning to invest $ 225 million and $ 100 million, respectively, in the joint venture. Consolidated value of the company, control (59.3%) in which the Russian Internet holding company will receive, was estimated by the parties at $ 3.725 billion.
“UberEATS has weak positions in the Russian market, but since he entered the perimeter of the deal – it is necessary to do something with him. The deal with Foodfox is due to synergies with UberEATS and the need to strengthen the direction. That’s why Yandex.Taxi is the buyer, and not Yandex itself, says RBC’s interlocutor in one of the Internet companies. Yandex Financial Director Greg Abovski said on Friday, November 17, in an interview with Bloomberg, that the company plans to expand the food delivery service. “Next year, we plan to invest very aggressively in this market,” said Abovski.
In pursuit of competitors
The capacity of the Russian market of food delivery from stores and restaurants in the first half of November 2017 has already exceeded 100 billion rubles. And in general for 2017 will be at least 115 billion rubles., Which is 16% higher than in 2016, says the general director of the agency “INFOLine-Analytics” Mikhail Burmistrov. “The growth rate in the medium term will remain at the level of at least 15% per year, with the most dynamic growth being observed in the delivery of food from supermarkets and hypermarkets,” Burmistrov said. All food delivery services basically earn on commission, which they take from restaurant owners for each order they have issued. The size of the commission on average is 25-30% of the amount of the order, told RBC founder of the network “Teremok” Mikhail Goncharov.
Last year another largest Russian Internet holding – Mail.Ru Group – entered the market. In November 2016, he purchased the Delivery Club project for $ 100 million, which is considered to be the market leader (by mid-2017, more than 5,000 restaurants were connected to it, and according to the company’s own data, about 25 thousand orders were registered through it day). In May of this year, Mail.Ru Group consolidated 100% of another food delivery service – ZakaZaka, whose purchase cost the holding company $ 20 million.
“Yandex” also relied on the development of a taxi service. In the middle of November it became known that Mail.Ru Group also became interested in the taxi market and is considering buying a minority stake in the group of companies “Vezet”, created as a result of combining taxi order services Fasten Russia (operates under the brands “Saturn” and RedTaxi) and “Luck” (brands RuTaxi, “Leader”, “Luck”).
According to Mikhail Goncharov, the food delivery market in the world traditionally occupies 8-9% of the turnover of the whole restaurant market, the only exception is South Korea, where this segment reaches 14%. In Russia, this market developed faster due to the low base effect. “I do not think that the growth rates will continue to be as high in the future – rather the main players of the market, such as Delivery Club and Foodfox, will compete with each other for the customer and dumping. Examples can already be observed: recently in the Delivery Club when ordering from the “Coffeemania” in the amount of 1500 rubles. was given a discount of 1000 rubles. Economically, this discount is not determined in any way, it’s just that the company, at the expense of investor money, is trying to attract consumers and take a large share in the market, “Goncharov said.
Authors: Maria Kolomychenko, Denis Puzyrev, Irina Li.
With the participation of: Galina Kazakulova.
Article in Russian: RBC