DAIMLER is to oversee the merger of MyTaxi and Hailo in a bid to take on Uber across Europe with a single brand.
The German car maker, which bought MyTaxi in 2014, will own 60 per cent of Hailo and have a majority of the board seats on the new company.
Hailo will receive no money from Daimler but the German multinational will inject hundreds of millions of Euros into the project to expand its operations into existing and new markets.
MyTaxi, which lets consumers hail licensed cabs on the street, believes it has an advantage with European cab regulators who are mostly hostile to American cab apps Uber and Lyft.
The merger of Hailo and Daimler-owned MyTaxi is the latest move by car makers into the ride-booking service market, which many believe will be the future of urban transport. Shahar Waiser, founder of the Gett taxi app, has predicted that in ten years time half of all journeys will be made in a vehicle ordered by a customer over the internet.