Daimler AG’s share price up, to acquire apps Mytaxi and RideScout

Daimler AG, the third-biggest luxury cars manufacturer in the world, acquired the mytaxi and RideScout applications as it seeks to expand its reach into transport services.

The company bought 100% of Intelligent Apps GmbH, owner of mytaxi, after it purchased an initial stake in 2012, and RideScout LLC. The price of the acquisitions was not disclosed, but according to people close to the process, they are estimated at less than $100 million.

“Our aim is to make mobility as simple as possible.” Robert Henrich, head of the Moovel at Daimler, said in a statement. “We would like to invite the taxi operators to work in close partnership with Moovel and mytaxi to exploit the potentials and opportunities offered by mobile Internet services.”

This move made Daimler the first major car manufacturer that sets foot at the ride-sharing business, a fast-growing market, which is currently dominated by start-ups such as Uber and Lyft.

On the other hand, the RideScout application helps consumers find the best route in order to reach a certain destination by using both public and private transport options, and also ride-sharing services.

“The acquisition of mytaxi and our existing holding in Blacklane, the rapidly growing limousine booking service, is by no means an attack on established taxi operators,” Henrich added, signaling the companys intent, in light of Ubers ban in Germany on account of taxi competition legislation.

Daimler AG was 1.75% up to close at €62.90 (~$82.72) per share yesterday, marking a one-year change of +19.29% and valuing the company at €67.29 billion (~$88.49bn). According to the Financial Times, the 30 analysts offering 12-month price targets for Daimler AG have a median target of €75.00, with a high estimate of €86.00 and a low estimate of €57.90. The median estimate represents a 21.32% increase from the last price of €61.82.