Google rival Yandex – “Russia’s coolest company” faces a pile of rubble!


For a long time, the Internet group Yandex was considered “the coolest company in Russia”. Just a few months ago, Google’s rival began to conquer the global market — with taxi apps and food delivery services, for example. More than four months after Russian President Vladimir Putin ordered the invasion of Ukraine, people are now faced with a mess.

The “New York Times” reports this in a comprehensive report on the Russian IT giant, which outlines its development from a small start-up to the main Russian IT group. Launched as a Russian Google rival, which quickly dominated the domestic search engine market, Yandex has been working to conquer the global market in recent years.

Taxi and Delivery Service Apps Abroad
Yandex expanded beyond the borders of Russia: with the taxi app from the Russian internet giant you could also call a taxi in Norway, Uzbekistan or Ivory Coast. In cities like London, Paris and Tel Aviv, Yandex entered the competitive food delivery market. At Ohio State University in the US, Yandex even tested autonomous robots that delivered food to students. After the pilot phase, the goal was to expand the offering to up to 250 universities in the United States.

Trading in Yandex Shares Suspended
However, nothing comes of it: Russia’s “coolest company” lost feathers after Putin’s attack on the neighboring country. The market value of the Russian IT giant, which is listed on the US technology exchange NASDAQ, fell from $ 31 billion to seven. Trading in Yandex shares is now suspended. Yandex operations abroad, such as the delivery operations in London, Paris and Ohio, had to be closed.

Every sixth employee has fled
There are also internal problems, such as staff shortages. According to the report, one sixth of the former 18,000-strong workforce may have fled Russia. In total, tens of thousands of programmers and IT experts have left Russia since the beginning of the war. The Kremlin now wants to recruit IT specialists even in prison. In addition, there are EU sanctions against the Yandex founders, who have since withdrawn from management.

Other companies have also been thrown back years
Yandex is an example of a large number of emerging Russian companies whose development was delayed for years by Putin’s war in the neighboring country and the accompanying economic sanctions. Even after a possible end of the war, Russian companies will probably struggle to find foreign investors. The loss of trust, which is also causing problems for Russian IT security provider Kaspersky, is great.

Source: Krone


Please enter your comment!
Please enter your name here

Share post:



More like this