- CEO Pinnington expects expansion of operations at Hamburg base
- Job cuts across tech, human resources, finance departments
The merger of U.K. taxi-hailing app Hailo with Daimler AG’s Mytaxi will cut as many as 50 jobs at Hailo headquarters in London, Chief Executive Officer Andrew Pinnington said in an interview Wednesday.
Pinnington, who will become the CEO of the newly-merged Mytaxi, said about 60 percent of these job cuts would be programmers, developers and engineers while the remaining losses would be across support functions such as human resources and finance.
Mytaxi will probably expand staff at its Hamburg, Germany, headquarters as the company seeks to ramp up growth across Europe, Pinnington said. A team of about 20 sales, operational and marketing employees currently working for Hailo will remain in what will become Mytaxi’s London office.
Job cuts will take place over the next 12 months and some staff will be let go when the merger is approved by regulators.
The merger will create Europe’s largest taxi app, with 100,000 registered drivers in more than 50 cities across nine countries, as Mytaxi seeks to challenge Uber Technologies Inc. in the region. Daimler will own 60 percent of the new business, while Hailo’s existing shareholders will retain 40 percent.
Carmakers from Toyota to General Motors have been investing in ride-sharing companies to keep pace with changing consumer habits, particularly among Millennials who some futurists predict will not own personal vehicles in the same numbers as their parents’ generation. Daimler bought Mytaxi and U.S. ride-booking service RideScout LLC in 2014. It also owns the Car2Go carpooling service.