Yesterday we reported on an upcoming merger between Daimler-owned taxi-hailing app MyTaxi and Hailo, the UK-based ride-hailing startup. The merger has now been confirmed, as has the fact that the Hailo brand will be ending, replaced entirely by MyTaxi.
The merger will create Europe's largest taxi-hailing service, with 100,000 drivers operating in over 50 cities in nine different countries, and 70m registered users.
The new company will use the MyTaxi brand with its head office in Hamburg, Germany, although Andrew Pinnington, currently the CEO of Hailo, will lead the firm. Niclaus Mewes, founder of MyTaxi, will take a seat on the board and help to integrate the two companies together.
"The joining of MyTaxi and Hailo is another strategi step in making us a leader of mobility solutions and platforms," said Klaus Entenmann, chairman of Daimler Financial Services. "By providing mobility at your fingertips, customers can enjoy various forms of mobility with a transparent overview and easy to pay services.
"This investment is in addition to the nearly €500m (£419m) we've already invested in building mobility platforms and services over the last years. We are prepared to make further strategic investments as we continuously build our mobility eco-system."
Hailo began life in London in 2010, as a group effort between technology entrepreneurs and taxi drivers. Unlike Uber, Hailo worked closely with black cab drivers and developed close relationships with those in the transportation industry.
However, while the company was able to successfully expand to cover Ireland, Japan and Spain, its attempt to crack the US and Canada, where Uber had a stronger presence, proved difficult. The company attempted to follow the same model it had employed in London, working with local drivers, but Uber already dominated the more lucrative town car market, leaving Hailo attempting to make money from cheaper minicab rides.
"By combining Hailo and MyTaxi, we have created the largest European taxi e-Hailing company," said Pinnington. "We bring together world class technology, an iconic brand, high quality people and the financial backing of our shareholders."
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