Leading taxi e-hailing app mytaxi, a unit of German automotive giant Daimler AG (ETR: DAI) agreed to acquire its rival Hailo, creating Europe’s largest taxi e-hailing company with 70 million passengers and 100,000 registered taxi drivers in over 50 cities across nine countries.
The geographic footprint of the two companies is very complementary. Hailo operates in the UK, Ireland, and Spain, while mytaxi is available in Austria, Germany, Italy, Poland, Portugal, Spain and Sweden.
The combined company is set to become a Pan-European market leader.
This acquisition was another important step for mytaxi`s vision, to become the largest and most successful taxi app in Europe, Daimler says. Since September 2014, mytaxi became a 100% subsidiary of the Daimler Mobility Services GmbH, part of Daimler Group.
The newly formed company will operate under the mytaxi brand and will rebrand all Hailo operations in UK, Ireland, and Spain by mid 2017. Hailo’s CEO Andrew Pinnington will be appointed CEO of the new company. Niclaus Mewes, founder of mytaxi, is taking a seat on the board and will play a central role in the integration and strategic development of the new company. The company’s head office will be in Hamburg, Germany.
“The joining of mytaxi and Hailo is another strategic step in making us a leader of mobility solutions and platforms. 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 500 million Euros 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.” said Klaus Entenmann, chairman of Daimler Financial Services AG.
“By combining Hailo and mytaxi, we have created the largest European taxi e-hailing company. We bring together world class technology, an iconic brand, high quality people and the financial backing of our shareholders”, said Andrew Pinnington, CEO designate of mytaxi.
Niclaus Mewes, founder of mytaxi, said: “Hailo and mytaxi are both market leaders in the countries we operate. Together we are even stronger and we look forward to further innovative transport and mobility solutions as we provide compelling offers for both drivers and passengers.”
“For our combined company the future looks bright: we’ll be expanding into new cities and additional countries, adding new features to our app, and strengthening our brand across all markets,” Hailo said, adding that with a Pan-European customer base, it expects to generate more business for its drivers.
Hailo is an easy-to-use free smartphone app that allows passengers to get a taxi or licensed car quicker. The Hailo network, with 60,000 drivers and over one million passengers, accepts a hail every two seconds, the company says. Hailo is available in more than 20 cities, including London, Madrid, Barcelona and Osaka, and all across Ireland.
Founded in 2011 by three taxi drivers and three internet entrepreneurs, Hailo has raised more than $100 million from Union Square Ventures, Accel Partners, Wellington Partners, Atomico Ventures and Sir Richard Branson, including a $50 million round funded by a group of Asian investors in early 2014.
The deal is subject to customary closing conditions and approval by European Regulatory Authorities which is expected to be obtained in the next 30 days.
LionTree Advisors acted as financial advisor to Hailo in connection with the transaction.
mytaxi is the world`s first taxi app with a direct connection between the passenger and the driver, founded in 2009. To date, mytaxi operates with a fleet of over 45,000 taxis and the app has been downloaded over 10 million times. With around 200 employees in thirteen offices, mytaxi is spanning across Germany, Austria, Poland, Spain, Italy, Portugal, and Sweden.
Daimler AG, headquartered in Stuttgart, Germany, is one of the world’s most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance, financial investments, credit cards, and innovative mobility services. In 2015, the Group sold around 2.9 million vehicles and employed a workforce of 284,015 people; revenue totaled €149.5 billion and EBIT amounted to €13.2 billion.
The company’s founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. Its current brand portfolio includes, in addition to the world’s most valuable premium automotive brand, Mercedes-Benz, as well as Mercedes-AMG, Mercedes-Maybach and Mercedes me, the brands smart, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses, and Daimler Financial Services’ brands: Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Truck Financial, moovel, car2go and mytaxi.