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Daimler (DDAIF) Broadens Investment Portfolio With Taxify

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Per Reuters, Daimler AG (DDAIF - Free Report) has invested in Estonia’s ride-hailing application, Taxify. This marks the addition of another mobility company in the investment portfolio of Daimler. Moreover, this German automaker is already an important investor or a majority owner in a number of online cab services.

Taxify has a presence in many African cities, as well as in Central and Eastern Europe. The investment will enable the company to develop its technology and expand its existing footprint in the markets. The company received $175 million from a group of investors led by Daimler, bringing Taxify’s total valuation to $1 billion.

A few other ride-hailing companies, majorly or partly owned by Daimler, include MyTaxi, Chauffeur Prive and Careem. MyTaxi is a major online cab player in Germany, which is also expanding in Britain, Ireland and Spain. Further, Daimler is an active investor in France’s Chauffeur Prive and the Middle Eastern operating company Careem.

Daimler AG Price and Consensus

Aiming to be a leader in mobility services, the company invests in concepts to optimize the existing transportation infrastructure, and develop flexible and eco-friendly mobility solutions.

Price Performance

In the past three months, Daimler’s stock has moved down 12.5% compared with 5.3% decline of the industry it belongs to.

 

Zacks Rank & Other Stocks to Consider

Daimler currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are BMW AG (BAMXF - Free Report) , Ferrari N.V. (RACE - Free Report) and General Motors Corporation (GM - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BMW has an expected long-term growth rate of 4.5%. Shares of the company have risen 6.3% over the past year.

Ferrari has an expected long-term growth rate of 17.3%. Shares of the company have risen 47% over the past year.

General Motors has an expected long-term growth rate of 5.5%. In a year’s time, shares of the company have gained 9.9%.

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