MyTaxi Expands in U.K.

MyTaxi is to begin converting London users of its acquired Hailo app to the German company’s smartphone software, as the unit of Daimler begins its fightback against Uber in the U.K. capital, according to Bloomberg.

The Hamburg-based cab-hailing company has already moved more than 17,000 drivers who previously used the Hailo system to the MyTaxi app and plans to start converting U.K. customers this week, CEO Andrew Pinnington said. In London, more than 30,000 licensed private-hire drivers use the Uber app, according to a company spokesman.

Hailo, which opened for business in the U.K. in 2011, briefly expanded to the U.S. and Canada, but pulled out of these markets in 2014 amid stiff local competition to focus on the U.K., Ireland and Spain. However, Hailo’s growth stalled. The total value of fares charged through the Hailo application in 2015 fell 3.3 million pounds ($4 million), to 97.5 million pounds, from a year earlier, according to accounts for HNH Group.

Daimler last year merged the mostly European-based MyTaxi with U.K. rival Hailo, as it plots a future in which ride-hailing and car-sharing services will replace some automobile ownership. The German carmaker also has deal with Uber in which Daimler says it will include its vehicles on Uber’s autonomous-car network in coming years. Pinnington says MyTaxi, which recently acquired a rival in Greece and is eyeing the competitive French market, can be a "hedge against disintermediation" for parent Daimler.

Unlike Uber, Hailo, MyTaxi and other taxi-hailing apps are intrinsically limited in the number of drivers they can deploy in a given city, since they use licensed cabbies to fill demand. They also can’t set their own fares. MyTaxi operates in 10 European countries including Germany, Ireland, Italy, Spain and Poland. Pinnington said he’s prioritizing expansion in Scandinavia and Eastern Europe, and would reach a decision soon about France.