Daimler takes stake in Uber rival Taxify as cab-hailing app reaches $1bn unicorn status

Uber rival Taxify has reached unicorn status thanks to the completion of $175m funding round led by vehicle giant Daimler.

Uber’s European rival is now valued at $1bn following the round which also involved TMT Investments, European venture capital fund Korelya Capital, TransferWise’s co-founder Taavet Hinrikus and Chinese taxi-hailing app Didi Chuxing.

In acquiring a stake in the company Daimler will also join Taxify’s board.

Alexander Selegenev, Executive Director of TMT, said: “We are delighted with the continuing trend of positive revaluations in our portfolio, especially from Taxify, which has now become the first “unicorn” in our portfolio, and for which we previously announced an upward revaluation less than a year ago.

Read more: Taxify pulls up in Paris after London puts breaks on Uber rival

“This is an enormous achievement for Taxify, which was co-founded by then 19-year-old Markus Villig, who borrowed his college money from his parents to launch the company in Estonia in 2013. Today, Taxify is one of the fastest-growing ride-hailing companies in the world with over 10 million passengers and 500,000 drivers in more than 25 countries”.

Like its competitor, Taxify has also struggled to get London’s regulators on board.

London’s transport authority Transport for London (TfL) investigated Taxify in 2017, saying it was “not a London licensed private hire operator” when it launched in the capital for just a few days.

The company is currently eyeing up a comeback, but in the meantime, it launched Lisbon, Portugal, where it claims to have signed up more than 600 drivers and several thousand users.

Read more: Uber rival Taxify launches in Lisbon as London wait continues