Daimler and Geely to Form Chinese Ride-Hailing JV
October 24 2018 - 5:00AM
Dow Jones News
By Max Bernhard
Daimler AG (DAI.XE) and its major shareholder Geely Holding
Group plan to form a joint venture to provide ride-hailing services
in China, Geely said Wednesday.
Geely, which owns a nearly 10% stake in the German premium car
maker, said both partners would hold 50% in the new company, which
will be headquartered in Hangzhou.
Daimler and Geely plan to offer ride-hailing services in Chinese
cities using premium vehicles, it said. The initial fleet will
include Daimler's Mercedes-Benz S-Class, E-Class and V-Class and
Maybach vehicles, but the joint venture isn't limited to
Mercedes-Benz cars, Geely said.
"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,"
said Geely Holding President An Conghui.
Geely already operates Chinese domestic ride-hailing service
CaoCao, which has more than 17 million registered users in 28
cities, it said.
Daimler's Mobility Services unit operates several ride-hailing
and car-sharing businesses, including car2go and moovel. The German
manufacturer plans to combine its car-sharing unit with that of
competitor BMW AG (BMW.XE) to better handle competition from
technology giants such as Uber Technologies Inc (UBERI.XX) and
China's Didi Chuxing Technology Co.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
October 24, 2018 04:45 ET (08:45 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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