Daimler and Hailo Merge to Make mytaxi Brand Largest in Europe
Automobile company Daimler AG has announced an all-share merger between its mytaxi brand and rival taxi-hailing service Hailo, which will create the largest smartphone-based ride-hailing business in Europe.
According to Reuters.com, the companies will merge and operate under the mytaxi brand, and they will lean on taxi drivers to get customers to their destinations, unlike American companies like Uber and Lyft which were established to compete with taxi companies.
While the companies did not disclose financial terms of the deal, Hailo and new mytaxi CEO Andrew Pinnington announced that Daimler had purchased 60 percent of the company, while the other 40 percent would be owned by stakeholders in Hailo.
Following the merger, the mytaxi brand will have 70 million passengers, 100,000 registered taxi drivers and a coverage area of over 50 cities in Austria, Britain, Germany, Ireland, Italy, Poland, Portugal, Spain and Sweden. The headquarters for mytaxi will be in Hamburg, Germany.
The merger between Daimler and Hailo is another example of carmakers around the world getting into the taxi- or ride-hailing services market. Recently, General Motors invested $500 million in Lyft and Volkswagen bought a $300 million stake in Gett.
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