Geely, Daimler Mull Over Ride-Hailing JV in China
Zhang Yushuo
DATE:  Oct 10 2018
/ SOURCE:  Yicai
Geely, Daimler Mull Over Ride-Hailing JV in China Geely, Daimler Mull Over Ride-Hailing JV in China

Yicai Global)Oct. 11 -- Chinese private automaker Geely Motor and German industry mainstay Daimler are considering forming a joint venture to provide ride-hailing services in China.

The two parties are in talks over a possible link up, according to Chinese industry news site iAuto Daily, adding that the firms would hold equal 50 percent stakes in the JV. The companies concerned are yet to respond to the reports so far.

The formation of a JV between the pair could pose a serious threat to Didi Chuxing's 63 percent market share in China. Largely unrivaled in the industry for some time, Didi's position and reputation have under pressure this year after two passengers were murdered in the past four months. SAIC Motor, a state-owned firm that wields considerable clout in China's auto market is also considering entering the market, according to a report at the end of August.

The two firms already operate their own separate ride-hailing businesses. Geely set up Caocao Zhuanche in 2015 and it operates in 24 cities in China with 23,000 cars in operation while Daimler's Car2Go service runs in 40 cities across the country.

Both companies have already nurtured closer ties when Geely's parent company Geely Holding Group took a 9.7% share in Daimler Benz in July, this becoming the German firm's largest shareholder.

Editors: William Clegg

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Keywords:   Geely,Daimler,Ride-Hailing