Automaker Daimler is planning on extending the European footprint for its ride-hailing business MyTaxi by undertaking an all-share merger deal with UK firm Hailo, which will be announced as soon as this week, according to Reuters.

The deal is an attempt by Daimler to take on dominant firm Uber, and position itself as the key automaker in the European ride-sharing market, as opposed to technology firms like Uber and Lyft.

Reuters, which cited three sources briefed on the matter, said that the deal was close to being finalised, and would see the German carmaker taking a majority stake in the combined business.

While Daimlers MyTaxi is relatively strong in mainland European markets, Hailo is performing much better in the UK and Ireland. The merger would strengthen the technology offering of both firms as well as building Daimlers brand and providing greater opportunities for economies of scale.

Automakers have been increasingly investing in ride-sharing and ride-hailing apps as the rise of the connected and autonomous car suggests a new market for on-demand vehicles which arent owned but simply hired when needed.

Earlier this year, Volkswagen took a $300m (£228m) stake in ride-sharing service Gett, while US car manufacturer General Motors has invested $500m in Lyft.

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