The developer of an app that allows users to order a taxi from the closest operator has raised €10 million from new and existing investors.

The developer of an app that allows users to order a taxi from the closest operator has raised €10 million (£8.3 million) from new and existing investors.

The investment in Hamburg-based myTaxi is led by car hire business car2go, a subsidiary of Daimler, which has embarked on a ‘strategic partnership’ with the taxi app.

Existing investors T-Venture, the venture capital arm of Deutsche Telekom and KfW Bankengruppe have also participated in the funding round, which will give myTaxi the firepower to target other European markets such as the UK.

Robert Henrich, CEO of car2go, says, ‘The services of car2go and myTaxi do not compete, but complement each other so that they can be combined to meet the needs of urban transportation in a practical and convenient way.’

myTaxi’s CEO Niclaus Mewes, who co-founded the venture with Sven Külper, says that Germany, Austria and Switzerland are the main markets for the app, but he is planning to target countries such as England, Spain and the Netherlands.

Lars Hinrichs, founder of networking website XING, joins myTaxi’s shareholders as part of this latest fundraising.