Yandex Expands in Israel: Acquires Wind's Tel Aviv Operations

Yandex Expands Mobility Services in Israel Through Wind Acquisition

Yandex, a leading technology company originating from Russia, is bolstering its presence in the Israeli transportation sector. This is being achieved through the acquisition of the Israeli operations of Wind, a shared electric scooter company.

While the financial details of the transaction remain undisclosed, reports from the Israeli financial publication Globes suggest an estimated value between $40 million and $50 million.

A Key Player in the Israeli E-Scooter Market

Wind is a prominent e-scooter sharing service provider in Israel, competing with established companies such as Lime, Leo, and Bird. Yandex has been operating its Yango mobility platform within Israel since 2018.

Initially focused on ride-hailing, Yango has progressively expanded its services to encompass last-mile delivery and food technology solutions. The integration of Wind’s operations is intended to broaden this ecosystem, offering a more comprehensive range of transportation options.

Synergies with Existing Yango Services

The newly acquired scooter fleet is anticipated to enhance Yango’s delivery capabilities. For instance, Yango Deli, a recently launched express grocery delivery service in Tel Aviv, relies on a network of strategically located dark stores.

Currently operating with 14 dark stores, the company projects a doubling of this number by the end of November, potentially leveraging the additional scooters for efficient delivery.

Details of the Acquisition

The acquisition encompasses Wind’s entire Israeli infrastructure, including a fleet of over 10,000 scooters designed specifically for sharing. This also includes the operational system and research & development efforts focused on optimizing travel routes.

Despite this sale, Wind, headquartered in Berlin and Barcelona, will continue to manage its operations throughout Europe. The company has secured a total of $72 million in funding and has facilitated approximately 4 million trips across 13 cities within the Tel Aviv metropolitan area.

Expanding Yandex’s Scooter Network

This acquisition follows Yandex’s recent launch of its own scooter-sharing platform, Yandex Go, in Russia. With an estimated fleet of around 5,000 scooters domestically, the Wind acquisition will more than double Yandex’s overall scooter capacity.

Users in Russia will gain access to scooters through the Wind application, while Israeli customers will be able to utilize the Yango app to book scooters.

Further Innovation in Autonomous Delivery

Yandex is also actively testing its autonomous delivery rovers in Israel, Ann Arbor, and South Korea. The company is prepared to initiate robotic deliveries pending the necessary approvals from local regulatory bodies.

Furthermore, Yandex intends to integrate its robotaxi technology into the Yango platform in the coming future.

Israel as a Key Testing Ground

A Yandex spokesperson explained to TechCrunch that Israel provides unique conditions for testing self-driving technology. “Israel provides us with conditions and challenges to test our technology, which we lack in other testing locations.”

These conditions include a high density of roundabouts, a significant number of two-wheeled vehicles and micromobility options, and challenging weather conditions like intense heat and humidity.

Lessons Learned in Moscow

Yandex observed a surge in last-mile delivery demand in Moscow during and after lockdown periods, resulting in a substantial increase in bicycle couriers.

“Our cars already knew how to deal with it,” stated a Yandex spokesperson, adding that the experience gained in Tel Aviv proved valuable in adapting to the increased traffic in Moscow during the COVID-19 pandemic.