Daimler Mobility Services and Geely Group Company have signed an agreement to form a premium ride-hailing joint venture in China. The 50-50 JV will be based in Hangzhou, and the premium ride-hailing service will utilise Mercedes-Benz vehicles like the S-Class, E-Class, V-Class and Maybach models, with the possibility of premium electric vehicles from Geely being added to the mix.
“Daimler is ideally positioned to continue its transformation by expanding into a comprehensive mobility services company as we pave the way to autonomous driving. With Geely Group, we have found an excellent partner to expand our mobility services in China. The joint venture will play a significant role as we continue to enlarge our portfolio and global presence and solidify our strong position in the mobility market,” said Klaus Entenmann, CEO of Daimler Financial Services AG.
“We are delighted to have defined terms for a premium ride-hailing joint venture with Daimler Mobility Services. The development of such services, in which both companies already have a presence, forms part of our transformation from a vehicle manufacturer into a global automotive technology group,” added An Conghui, president of Geely Holding.
Details about the financial terms and the investment plans of the joint venture have not been disclosed at this stage, and its implementation is subject to approval from the merger control authorities.
With the deal, both companies are likely looking to take on Didi Chuxing, the company that acquired Uber’s Chinese business a few years ago, and currently has a strong grip on the ride-hailing industry in the country.
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