Daimler and Geely to Form Premium Ride-Hailing Joint Venture in China

Daimler Mobility Services GmbH and Geely Group Company, Zhejiang Geely Holding Group’s new business subsidiary, has announced to build a joint venture (JV) in China to provide premium ride-hailing services.

Daimler in a statement has described the alliance as:

“The joint venture will provide ride-hailing mobility services in several Chinese cities using premium vehicles including but not limited to Mercedes-Benz vehicles.”

The 50-50 JV will be headquartered in Hangzhou, Zhejiang Province, and will work on providing ride-hailing services in Chinese cities using premium cars. At the initial stage, the fleet will include the Mercedes-Benz S-Class, E-Class and V-Class and Maybach vehicles and could later deploy premium electric vehicles from the Geely Group such as the Borui GE.

Geely Borui

Zhejiang Geely Holding Group has already launched its mobility service platform dubbed Caocao Zhuanche that currently has deployed over 29,000 all-electric vehicles in 28 cities across China with over 360,000 trips completed per day. Besides, the Chinese ride-hailing service platform has by far attracted more than 170 million registered users with over 1 million regular active users on the app on a daily basis.

Automakers are scrambling fast to establish themselves in new technologies, as car-sharing and autonomous driving threaten to upend the traditional model of vehicle ownership.

Related: Geely Founder Li Shufu Acquires 9.69% of Daimler AG Becoming Largest Single Shareholder

Earlier this year, Li Shufu, the chairman and owner of China Zhejiang Geely Holding Group, acquired a 9.69% stake in Daimler, becoming the single largest shareholder of Daimler AG. Since then the two companies are working on collaboration in different key areas.

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