German multinational automotive corporation Daimler is adding Taxify to its investment portfolio
A Daimler representative will join Taxify’s board
Taxify, which has eaten into Uber’s market share in Central and Eastern Europe and major African cities, said it will use the investment to develop its technology and further penetrate its existing regional markets. It counts 10 million passengers and 500,000 drivers in the more than 25 countries where it operates, according to Reuters.
Daimler, already a majority owner or significant investor in a string of online taxi services across Europe and the Middle East, is majority owner of MyTaxi, which is a major online taxi player in Germany, and a rival to Uber in Britain, Ireland and Spain. The automotive giant is also an investor in Uber rivals Chauffeur-privé of France, and Careem, which operates in cities across the Middle East.
Along with European venture fund Korelya Capital and TransferWise co-founder Taavet Hinrikus, Daimler joined a number of existing investors, including Didi Chuxing of China, in a round that brings Taxify’s valuation to $1 billion, the company has said.
Uber remains the world’s largest player outside of China, despite numerous struggles in its businesses over the past two years. However, it has retreated from several regional markets, including southeast Asia in March, and has taken a backseat in Russia and several nearby countries after forming a joint venture with Russia’s Yandex, Reuters added.