Daimler’s mytaxi to merge with UK's Hailo
mytaxi, a ride hailing entity which is a subsidiary of Daimler Mobility Services, is merging with its UK rival Hailo.
Financial details related to the merger have not been disclosed either by Daimler or by Hailo or by mytaxi.
At present, Hailo operates independently in Britain, Ireland and Span.
Services of mytaxi are available in Austria, Germany, Italy, Poland, Portugal, Spain and Sweden.
The merger will create Europe’s largest smartphone-based taxi-hailing business with 70 million passengers and 100,000 registered taxi drivers who are operating in nine countries.
Fortune magazine opines that the new company will operate with a model which does not compete with its rival ride-sharing companies unlike US-based startup Uber. Instead, it will operate with them.
With this merger, automakers such as Daimler can foray into the lucrative business of ride-hailing dominated by the likes of Uber.
Hailo CEO Andrew Pinnington noted that it is paper deal, where Daimler will own 60% of the shares in the new company and the remaining 40% of the shares will be held by Hailo.
Andrew Pinnington will reportedly be the new CEO of the combined company.
It is also reported that the new headquarters will be located in Hamburg, Germany. Apart from this, mytaxi founder Niclaus Mewes will be in the supervisory board, in addition to becoming the managing director of Daimler Mobility Services.
In the recent times, several automakers have been investing in ride-hailing businesses. General Motors invested $500m in Lyft, Volkswagen invested $300m in Israeli app Gett and Toyota announcing an undisclosed amount of investment in Uber.
Hailo, which was launched in 2011, has been struggling to get a share in the ride-share market. But, with huge competition from Uber and Lyft, it had quit its operations in US and now operates in Britain, Ireland and Spain.
This merger could provide significant boost to Hailo and can help in expanding its operations further in Europe.
Image: Daimler’s mytaxi and Hailo to merge into one company. Photo: Courtesy of Hailo.