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Germany’s Daimler and Geely in ride-hailing tie-up in China

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FRANKFURT: Germany’s Daimler is setting up a ride-hailing joint venture in China with Geely Group, in a sign the Chinese firm is making progress in its drive for closer relations with the maker of Mercedes-Benz cars.


The deal creates a new competitor to Didi Chuxing, which currently dominates a Chinese ride-hailing market that has shown explosive growth in recent years, expanding from 30 million users in 2014 to 217 million in 2017, according to Bain & Co.


The market is currently worth $23 billion, more than all other ride-hailing markets combined, and Didi accounts for 90 per cent of all bookings, the consulting firm said.


Geely Chairman Li Shufu took a 9.69 per cent stake in Daimler earlier this year, asking Mercedes-Benz to strike up an alliance to better counter the threat from upstart mobility companies.


Li’s move rekindled German fears about high-tech know-how falling into Chinese hands and Daimler initially balked at the prospect of an alliance, in part on fears it might alienate Mercedes’ existing Chinese partner BAIC.


“The JV (joint venture) will provide ride-hailing mobility services in several Chinese cities using premium vehicles including but not limited to Mercedes-Benz vehicles,” Daimler said on Wednesday. — Reuters


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