UK-based Hailo is merging with Mytaxi, a rival owned by Daimler, in a move to create one of the biggest ride hailing apps in Europe and step up competition with Uber.

In a statement, Hailo said the two companies’ footprint is “very complementary”. Hailo operates in the UK, Ireland, and Spain, while Mytaxi is available in Austria, Germany, Italy, Poland, Portugal, Spain and Sweden.

Under the terms of the agreement, car manufacturer Daimler will take a 60 per cent stake in Hailo, and merge the company with Mytaxi, which it acquired in 2014.

Hailo said the merged entity, which will be headed up by its CEO Andrew Pinnington, will serve more than 3 million customers, with more than 100,000 registered taxi drivers across 50 cities.

The Hailo brand, meanwhile, will be dropped altogether.

According to reports, the deal will not see any cash being exchanged. Hailo has raised approximately $100 million in total since its launch.