Investing.com – Uber stock (NYSE:UBER) traded 0.3% higher in Tuesday's premarket as the company cashed out of some of its food delivery and self-driving joint ventures in Russia and elsewhere.
The move represents the latest retreat from foreign markets for Uber, which is still struggling to become consistently profitable. It had originally bundled its Russian operations with Yandex in 2017, after giving up ambitions to go it alone in the country.
The company will receive $1 billion in cash from the buyer, Yandex (NASDAQ:YNDX). Shares of the Russian company traded 1% higher on the Nasdaq.
Uber has sold its indirect stakes in Yandex.Eats, Yandex.Lavka and Yandex.Delivery, giving its partner 100% ownership in all three businesses. The stakes were held through MLU, a joint venture with Yandex.
It also sold its interest in Yandex Self-Driving Group.
Yandex has a two-year American call option to acquire the remaining 29% of Uber’s interest in the newly restructured MLU at a strike price of $1.8 billion, subject to agreed increases over the option period -- going up to approximately $2 billion if exercised in September 2023.
The Russian company will also get an extension of the current license to use Uber's brand in Russia and certain other countries until August 2030, assuming exercise of the option.
Over the last few years, Uber has sold stakes in the cut-throat and loss-making food delivery ventures in several countries. Last year, it sold its food delivery business in India to Zomato (NS:ZOMT).