Russia based Yandex is looking to divest its Yango Deli fast-delivery business in the UK and wind down its business in France. This comes at a time when the business model is being questioned as no such business has made a profit in the last five years.

Yandex is looking to wind up its business in France thanks to high levels of competition and the business failing. “Yango Deli is gradually suspending its ultra-fast grocery delivery operations in Paris,” a Yango Deli spokesperson said. “This was a pilot project with a small number of dark stores, and it has underperformed our internal targets.”

Sanctions on Russia over the Ukraine crisis have make Yandex’s ability to maintain its businesses in Europe increasingly difficult, especially with so many in this sector struggling as demand falls after the pandemic. As such it is also looking to sell its UK business.

“The ultrafast delivery market in London is highly competitive and we see a considerable amount of interest in our business there, including from peers,” the Yango Deli spokesperson added. “However, we can’t provide any further details on this at the moment.”

It remains to be seen if a buyer will come forward for the UK Yango Deli business as it seems, the hype around such business models is starting to falter.