San Francisco:

Uber Technologies Inc. is handing over the keys to its business in Russia.

The San Francisco-based company and Yandex NV are merging their ride-hailing businesses in Russia. Uber will invest $225 million (Dh826 million) and take a 36.6 per cent stake in a new, yet-to-be named venture that will be valued at $3.73 billion, the companies said in a statement Thursday. The shares of Yandex, which will invest $100 million and own 59.3 per cent of the new enterprise, rose as much as 9.6 per cent in Moscow, the highest since June 2014.

The deal with Yandex is Uber’s second retreat from a major market. Last year, Uber left China in exchange for a 17.5 per cent stake in rival Didi Chuxing, after losing more than $2 billion battling its competitor. While Uber remains the dominant ride-hailing operator in the US, it has been on the defensive, beset by scandals that led to Travis Kalanick’s ouster as chief executive officer. The agreement with Yandex is part of Uber’s renewed effort to improve revenue, narrow losses and resolve its legal issues.

“This deal is a testament to our exceptional growth in the region and helps Uber continue to build a sustainable global business,” Pierre-Dimitri Gore-Coty, Uber’s chief for Europe, Middle East and Africa, said in the statement.

Tigran Khudaverdyan, head of Yandex. Taxi in Russia, will become CEO of the combined enterprise, Uber and Yandex said. Together, their businesses handle 35 million rides a month, and will also operate in Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia. The deal is expected to close in the last three months of 2017.

Uber’s exit from Russia could be a precursor to more deals in other big, fiercely competitive ride-hailing markets. Investors have raised questions as recently as this month about Uber’s continued losses in India and Southeast Asia, asking privately whether the company would be better served by cutting deals with market leaders Ola and Grab, two people familiar with the matter said.

Uber’s loss before interest, taxes and stock-based compensation totalled $708 million in the first three months of the year, an improvement from the $991 million loss in the prior quarter. Losses narrowed further in the latest period, Uber recently told investors. Net revenue was $1.5 billion in the first quarter, according to its more conservative accounting method.

BOX — Daimler manipulated emissions in one million cars: report

FRANKFURT AM MAIN: German luxury automaker Daimler manipulated the engines of around one million diesel vehicles to make them appear less polluting, local media reported Thursday, raising echoes of competitor Volkswagen’s ‘dieselgate’ scandal.

“The Stuttgart-based firm sold vehicles with higher levels of damaging emissions than allowed for almost a whole decade between 2008 and 2016, in Europe and the United States,” daily Sueddeutsche Zeitung said.

Along with regional broadcasters NDR and WDR, the newspaper had access to a search warrant from a Stuttgart court allowing prosecutors to raid 11 sites belonging to the Mercedes-Benz and Smart maker in late May.

Investigators suspect that the world’s largest luxury carmaker used a similar so-called “defeat device” to Volkswagen, which in 2015 admitted to manipulating emissions readings on some 11 million diesel vehicles worldwide.

— AFP