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Hailo to merge with myTaxi in major challenge to Uber's dominance

London-based taxi app Hailo has announced it has sold a 60% stake of its business to Mercedes-Benz owner Daimler, in a deal that will see it merge with the German firm’s myTaxi app.

The move, which will create Europe’s largest smartphone taxi hailing app, is being interpreted as a major challenge to US ride-hailing firm Uber’s predominance in the region.

Unlike Uber, Hailo utilises the pre-existing network of taxi cabs and companies in the UK, Ireland and Spain, working in partnership with traditional taxis rather than in competition.

Founded in 2011, the taxi app has received some high-profile backing from Sir Richard Branson and includes Amazon.co.uk amongst its clients in its ‘Hailo for Business’ programme, which has enjoyed 200% year-on-year growth.

According to Reuters, Hailo Chief Executive Officer Andrew Pinnington will helm the new merged firm which will now operate under the myTaxi brand and be headquartered in Hamburg, Germany.

Commenting on the terms of the deal, Andrew said: “It’s a paper deal. Daimler will own 60 percent of the new entity and the stakeholders in Halio will own 40 percent.”

The German taxi app currently operates in Germany, Austria, Italy, Spain, Poland, Portugal, and Sweden, and will now add Hailo’s regional coverage to its line up.

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