Daimler, Geely Launch Mobility Services Venture in China

Daimler AG and Zhejiang Geely Holding Group have formed a new company to sell mobility services in China.

Based in Hangzhou, the unnamed venture has been capitalized at 1.7 billion yuan ($246 million). The company is equally owned by the mobility subsidiaries—Geely Technology Group and Daimler Mobility services—of the two carmakers, Automotive News China reports.

Initially, the partnership will offer mobility services in high-end Mercedes-Benz models in select cities. Eventually the venture will expand its offerings to Geely’s premium electric vehicles.

Last October, the Daimler and Geely formed a 50:50 joint venture to launch their own ride-hailing service in China. The business will compete against market leader DiDi Chuxing.

The new mobility services collaboration between the two companies reflects their interest in broadening their relationship after Geely acquired a 9.7% stake in Daimler. The Chinese company is now Daimler’s largest shareholder.