Daimler Mobility Services and Geely Group Company form premium ride-hailing joint venture in China
Daimler Mobility Services and Geely Group Company, Geely Holding Group’s new business entity, announced they will form a premium ride-hailing joint venture in China. The 50-50 joint venture (JV) will be headquartered in Hangzhou. The JV will provide ride-hailing mobility services in several Chinese cities using premium vehicles including, but not limited to, Mercedes-Benz vehicles. The fleet initially will include Mercedes-Benz S-Class, E-Class, and V-Class and Maybach vehicles and could be supplemented by premium electric vehicles of the Geely Group. Financial terms and the investment plans of the JV have not been disclosed at this stage. The implementation of the JV is subject to approval by the merger control authorities.
As part of the JV, Geely Group Company and Daimler Mobility Services will be equally represented on the board of the new ride-hailing service, for which the two companies will jointly develop the software infrastructure required to support the business in China.
The joint venture will complement Geely Group company’s and Daimler’s expansion into new mobility services. Geely Holding has launched CaoCao, the Chinese domestic ride-hailing service that currently has more than 17 million registered users, with one million regular active users on the app providing more than 29,000 pure electric vehicles in 28 cities across the country and with over 360,000 completed trips throughout the country on a daily basis.
With the JV, Daimler Mobility Services will enlarge its global presence: As of September 30, 2018, car2go, moovel, and mytaxi/Intelligent Apps accounted for 26 million customers. With car2go and Car2Share, Daimler says it is currently providing free-floating as well as station-based car-sharing services to over 470,000 customers in China who have completed over 20 million kilometers in car-sharing journeys.