+1-888-308-5802     
News Contact Us

Daimler and Geely join forces to set up ride-hailing service in China

Author : Pankaj Singh | Published Date : 2018-10-26 

German automobile company Daimler is reportedly setting up a ride-hailing joint venture with Geely Group in China, a move that could help the Chinese firm build close relations with the Mercedes-Benz brand owner. Li Shufu, Chairman of Geely, had taken up a 9.69% stake in Daimler earlier in the year, renewing fears among Germans about its highly-prized expertise falling into the hands of Chinese.

Sources claim that Daimler had initially hesitated to form a broad based alliance, concerned with the possibility of alienating BAIC, the existing Chinses partner of Mercedes.  The German company, however, announced recently it would be teaming up with Geely in the Chinese ride-hailing market, which is dominated by Didi Chuxing.

In its statement, Daimler had said that the joint venture with Geely would offer ride-hailing mobility services in many Chinese cities and will use premium vehicles like Mercedes-Benz E-Class, S-Class and V-class, among others. The vehicles will not be limited to Mercedes-Benz only, the company had mentioned.

Although financial information pertaining to the deal was not disclosed, sources confirmed that headquarters of the 50:50 venture would be in Hangzhou, China. Daimler Mobility Services and Geely Group Company will be represented equally on the board of the new ride-hailing service, for which both the companies will together develop the software infrastructure needed to support operations in China.

President of Geely Holding, An Conghui, stated that developing such services, in which both the companies are already present, is a part of the company’s transformation into a global automotive technology group from just being a vehicle manufacturer.

The probability of autonomous cars being rolled out on the road has further intensified the competition between technology companies, ride-hailing platforms and traditional automakers to launch fleets of smartphone-hailed taxis or pursue collaborative deals. Ola, For instance, has been working together with Apple since November 2016, while Uber has attracted investments from Google and Toyota.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Facebook admits storing user account passwords in plain text

Published Date: 2019-03-23         Author: Pankaj Singh

The California-based company reaches an estimated 2.7 billion people across the globe with its core social network, messaging applications, and Instagram. Facebook has reportedly admitted that it stored millions of user account passwords in plain text on its internal servers, a faux pas that left... Read More

Cymulate’s BAS platform bags $7.5M in Series A financing round

Published Date: 2019-03-15         Author: Pankaj Singh

The investment will be used to expand Cymulate’s U.S. operations and to enhance its platform’s functionality. Israel-based cybersecurity firm, Cymulate Ltd. has recently raised around $7.5 million in a Series A financing round led by Dell Technologies Capital and Vertex Ventures ... Read More

Rubber processing chemicals industry to exhibit an accelerated growth rate from tire manufacturing applications to 2025, surging automobile production to fuel the industry landscape

Published Date: 2019-02-26         Author: Pankaj Singh

Owing to the ceaseless demand for automobiles over the past three decades, the global rubber processing chemicals industry has witnessed rapid development, specifically from the tire manufacturing segment. A rather fast moving vertical, tire manufacturing involves continuous utilization of chemicals... Read More

© 2019 Fractovia. All Rights Reserved