Mytaxi has merged with Hailo, giving its owner Daimler Group a 60% stake in what is now Europe's biggest taxi app business.
The new company will operate under the mytaxi brand, with Hailo's businesses in the UK, Ireland and Spain transferring to mytaxi by mid-2017.
A spokesperson told Tnooz that as well as swapping brands Hailo will start to use the mytaxi platform within the same time frame.
Hailo's current CEO Andrew Pinnington will run the new company, which will be based in Hamburg.
The combined business becomes the European market leader. Currently they have 3 million active users, defined as someone who has used the apps to book a cab within the past thirty days.
Mytaxi was set up in Germany 2009 and claims to be "the world's first taxi app". It was bought by Daimler in 2014 for an undisclosed sum. The new company will be 60% owned by Daimler with the balance held by existing Hailo shareholders.
Hailo has received just over $100 million in funding since its launch in 2011.
In context of the global taxi app industry, the creation of a European powerhouse operating under a single brand brings another scale player into the mix (although it is worth comparing its three million active users with China's Didi, which completes 14 million rides a day across all its businesses).
It also means that there is now an obvious European partner for the Rides Everywhere alliance, set up by Lyft and Didi. The founders cover North America and China respectively and have since recruited Grab for south east Asia and Ola for India.
Daimler however is talking in terms of further strategic investments in the new business, having already committed nearly €500 million to what it calls "mobility platforms and services".
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Lyft drives away with $500M from General Motors, plus $500M from others (Jan 2016)