Daimler and Geely are to tie up over a ride-hailing venture in China due to start operations in 2019.

The two firms signed a Memorandum of Understanding over the JV at Daimler Headquarters in Stuttgart

The 50-50 joint venture, run by Daimler Mobility Services and Geely Group Company, Geely Holding Group’s new business entity, would offer services in several Chinese cities using premium vehicles including Mercedes-Benz S-Class, E-Class and V-Class and Maybach vehicles initially, with the possibility of expanding this to include Geely Group EVs.

The firms said the JV would complement their existing standalone mobility projects, including Geely Holding’s CaoCao Chinese domestic ride-hailing service and

Daimler Mobility Services’ Car2go, Moovel and Mytaxi/Intelligent Apps services.

Klaus Entenmann, CEO Daimler Financial Services AG, said: “ Daimler is ideally positioned to continue its transformation by expanding into a comprehensive mobility services company as we pave the way to autonomous driving. With Geely Group, we have found an excellent partner to expand our mobility services in China. The joint venture will play a significant role as we continue to enlarge our portfolio and global presence and solidify our strong position in the mobility market.”

An Conghui, Geely holding president, added: “The development of such services, in which both companies already have a presence, forms part of our transformation from a vehicle manufacturer into a global automotive technology group.”

The implementation of the JV is subject to approval by the merger control authorities.