German vehicle manufacturer Daimler is reportedly working with its major owner, Chinese Geely, on online taxi and ride-sharing services in China.

This is reported by Bloomberg News, citing people familiar with the matter.

The companies are said to be in talks to create a 50/50 joint venture to offer the services, but the discussions have not been finalized, according to the sources.

The joint venture would thus compete with the Chinese leader in online taxi services Didi Chuxing, a company that has already encountered challenges, including regulatory requirements for the service.

The information claims that Daimler is considering using cars from its Denza electric car brand for the new service.

The online taxi and ride-sharing service would be a concrete step in the collaboration between Li Shufu's Geely and Daimler, after the billionaire bought nearly 10 percent of the German vehicle manufacturer earlier this year.

Geely, which is also a major owner of the Swedish truck group Volvo AB and owner of the passenger car company Volvo Cars, already has an online taxi app called Caocao that offers services in 24 cities in China with 23,000 electric cars, writes Bloomberg News.

Source: news agency