Daimler and Uber dismiss tie-up plans image

CEOs of both Daimler and Uber said their companies were not interested in a buyout move and there were no talks over other agreements.

Based on the fact that both companies have similar market values, reports lately have suggested that Daimler and Uber are considering taking a stake in each other. But their chief executives Dieter Zetsche and Travis Kalanick, who appeared together last week at a conference in Berlin, denied such plans of one taking over the other. Furthermore, they also dismissed a March report from the German Manager Magazin that suggested the ride-sharing service placed a staggering long-term order for around 100,000 Mercedes-Benz S-Class flagships.

Even if Uber has never made profit so far, it has a market value of around 62.5 billion dollars, which made Zetsche ask Kalanick for an explanation. Uber’s CEO reiterated that the company was profitable in at least 200 cities it operated, mainly in emerging markets, but it was massively unprofitable in the developing ones. Uber’s stock capitalization also jumped in the past month, following the deal signed with Toyota and the 3.5-billion-dollar investment made by Saudi Arabia’s sovereign wealth fund.

Automakers are trying to counteract the expansion of the private ride-sharing services by also making similar investments. The German auto group formed the Mobility Services Unit Moovel, while also owning the car-sharing company Car2Go.

Via Reuters