Cab-hailing app Hailo is expected to announce a merger rival app MyTaxi tomorrow.
The move is part of a strategic investment by Mercedes-Benz-owner Daimler – the owner of MyTaxi – it was first reported by Sky News.
Hailo has been seeking further funding for some time, having had only enough cash to support itself for three months at the beginning of the year an auditor’s report revealed.
Hailo has backing from some of the tech sectors biggest names, with Accel, Wellington Partners and Sir Richard Branson among investors.
It is not known how much of the company external investors will continue to control.
The taxi and private car hailing app market has ballooned in recent years, with US firm Uber leading the charge with its global expansion.