Daimler, Geely in Talks about Ride-Hailing Service in China

October 11, 2018 at 2:32 AM

A new ride-hailing and car-sharing service for the Chinese market is being considered by Daimler AG and Zhejiang Geely Holding Group Co., sources tell Bloomberg News.

The companies are discussing a 50:50 venture that would compete with DiDi Chuxing, which dominates the rapidly expanding market, Bloomberg says. It cites data that indicate the number of rides provided per year in China by such services more than quadrupled between 2015 and 2017 to about 7.5 billion.

Chinese billionaire Li Shufu, who founded Geely, has been looking for ways to partner with Daimler since he acquired nearly 10% of the German carmaker in February. Geely also owns England’s London Taxi and Sweden’s Volvo Cars.

Bloomberg notes that Daimler has been relatively successful with its own forays into ride-hailing (MyTaxi), ride pooling (ViaVan) and car sharing (Car2Go).