Yandex Starts Handyman-Referral Service in Push Beyond Search

Yandex NV (YNDX), Russias largest Internet company, started a handyman-referral service similar to Google Inc.-backed Thumbtack Inc., continuing a push to expand beyond search.

The Yandex.Master service -- the master referring to someone who does a job really well -- matches users with local suppliers of services such as apartment renovations, cleaning and gadget repairing. Yandex will start charging service providers next year, based on pay-per-lead.

Yandex, with double Googles Web-search market share in Russia, is moving into businesses ranging from e-commerce to online video to keep users hooked and diversify its revenue sources. Sales growth at the company has slowed for three quarters as more Russians already browse the Internet, leaving the pool of potential new Web users smaller.

The new service is the second started by Lev Volozh, the 26-year-old son of Arkady Volozh, Yandexs billionaire chief executive officer. Three years ago, the younger Volozh started Yandex.Taxi for booking rides online, a popular service that has been leading Uber Technologies Inc. in Russia.

Thumbtack raised $100 million from Google Capital last month. Other similar services include Home Depot Inc.-backed Redbeacon, TaskRabbit and its European clone Helping, set up by Germanys Rocket Internet AG.

Yandex.Master will let service providers contact prospective customers by phone via Yandexs call center. That allows Yandex to charge suppliers for each contact, Lev Volozh said in an interview. That method provides Yandex with a more reliable revenue stream than a commission, because the fee the service provider charges for the task can be misrepresented, he said.

Shares of Yandex, which is registered in Amsterdam and has its main offices in Moscow, fell 2.3 percent to $28.74 yesterday in New York. They have lost 33 percent this year.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net Ville Heiskanen, Mark Beech

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Yandex Starts Handyman-Referral Service in Push Beyond Search