Based in London, Hailo has operations spanning the UK, Ireland and Spain, while Mytaxi is available in Austria, Germany, Italy, Poland, Spain and Sweden.

The merger, which is expected to be completed in mid-2017 subject to the approval of the European Regulatory Authorities, will bring both companies together under the Mytaxi brand, based in Hamburg, with a user database including 70 million passengers and 100,000 drivers in more than 50 countries.

Hailo CEO, Andrew Pinnington, becomes chief executive of the new company, while Mytaxi founder Niclaus Mewes takes a seat on the supervisory board and becomes Managing Director of Daimler Mobility Services GmbH, with a role in the merger’s ongoing development and integration.

Klaus Entenmann, Chairman of Daimler Financial Services AG, said: “The joining of mytaxi and Hailo is another strategic step in making us a leader of mobility solutions and platforms. 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.”

Hailo is the latest ride-hailing company to receive car manufacturer investment over the last few months, following Volkswagen Group acquiring Gett in May, Toyota’s recent investment in Uber and General Motors funding Lyft.