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Business· Transportation· Markets

Daimler and Geely partner up to enter China’s ride-hailing market

CKN
minutes 2018/10/10 01:57:22
1,881
China's Financial News, China News, Daimler,  Geely

Oct 10, 2018 (China Knowledge) - Daimler AG and Geely Holdings are planning to enter a partnership to start ride-hailing and car-sharing services in China. The proposed 50-50 partnership aims to take on market leader Didi Chuxing and allow both companies to have a foothold in new mobility services.

China’s auto market has slowed down recently partly due to a change in consumer patterns as more people move towards sharing from traditional ownership. Both companies hope to position themselves to take advantage of this change in preferences have delved into mobility technologies previously.

Geely has a ride-hailing service named Caocao that is available in 2 dozen Chinese cities with a network of more than 20,000 electric vehicles. Daimler, on the other hand, has its Car2Go car-sharing service which has recently expanded its services to Chicago. Car2Go is already available in many cities around the world such as Chongqing, Berlin and Madrid.

The partnership comes as Didi faces increasing pressure from regulators over security concerns as well as competition from rivals Meituan Dianping that forced it into some cash-draining initiatives.

Geely has seen steadily increasing sales in its domestic market of China and now only trails behind Volkswagen and General Motors in sales. 

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