UK taxi app Hailo to merge with MyTaxi
Hailo will now become part of the European MyTaxi brand under owner Daimler in an attempt to take market share from likes of Uber and Lyft
Hailo, the London taxi app co-founded by Growing Business Young Gun Jay Bregman, has officially agreed to a merger with ride-sharing app MyTaxi – the company owned by Mercedez Benz’s Daimler.
The merger, which involves no cash exchange, will see Daimler take an approximate 60% stake in Hailo and controlling seats on the board while all of Hailo’s operations in the UK, Ireland, and Spain will be re-branded as MyTaxi by mid-2017.
Founded in 2011 by a group of three taxi drivers and three entrepreneurs, Hailo enabled customers to order a licensed cab via their iPhone or Android device and had expanded to a 15,000-strong fleet of taxis over the last five years boosted by over $100m in funding.
In 2014, the business announced it would be pulling its service out of North America due to “an ongoing price war and battle for market share” with co-founder Bregman exiting the company to “focus on new pursuits”. In 2015, the company unveiled a partnership with restaurant reservation service Bookatable to offer diners an on-demand taxi service.
The merger, which Business Insider dubbed a “sad end”, will see Hailo run by CEO Andrew Pinnington from MyTaxi’s head office in Hamburg, Germany and takes MyTaxi’s fleet of drivers to around 100,000 in over 50 cities across nine countries.
Hailo’s Pinnington said of the news: “By combining Hailo and MyTaxi, we have created the largest European taxi e-Hailing company. We bring together world class technology, an iconic brand, high quality people and the financial backing of our shareholders.”
Klaus Entenmann, chairman of Daimler Financial Services AG, said the merger would make it a “leader of mobility solutions and platforms”:
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“By providing mobility at your fingertips, customers can enjoy various forms of mobility with a transparent overview and easy to pay services. This investment is in addition to the nearly €500m we’ve already invested in building mobility platforms and services over the last years. We are prepared to make further strategic investments as we continuously build our mobility eco-system.”