Zhejiang Geely Holding Group and Daimler established a 1.7-billion-yuan ($246-million) joint venture in the east China city of Hangzhou to offer mobility services in China.
The new company is equally owned by the two automakers' mobility subsidiaries -- Geely Technology Group and Daimler Mobility Services, according to Qixin.com, a Chinese website tracking registry and credit status of businesses.
Initially, the mobility venture will use several Mercedes-Benz models -- the S- and E-class sedans, and V-class multi-purpose vehicles -- to provide premium mobility services in select Chinese cities.
Going forward, the fleet will be expanded to include Geely's high-end electric vehicles, according to the joint venture agreement Geely and Daimler signed in October 2018.
The mobility joint venture is part of broader cooperation between the two automakers after Geely purchased a 9.7 percent stake in Daimler in February 2018.
In March, Geely and Daimler struck a deal on establishing a 50-50 joint venture to build next-generation Smart EVs.
Under the deal, the new partnership will be incorporated in China before the end of 2019 while sales of the new electric Smart EVs will be launched in and outside China in 2022.