Auto giant Daimler AG, which owns major car brands such as Mercedes-Benz, is capping off the year with an investment in the crowded ride-hailing market.

The company today announced that it has acquired a majority stake in Chauffeur Privé, a French startup competing with Uber Technologies Inc. that boasts 1.5 million customers and 18,000 drivers. Daimler plans to buy all the firm’s remaining equity by 2019.

The terms of the transaction were not disclosed, but the price tag likely was quite substantial given Chauffeur Privé’s large installed base and rapid growth. According to the Financial Times, the startup saw adoption grew by around 50 percent in the past year. It was reportedly also in the “final stages” of closing a 50 million euro ($59 million) funding round before the deal with Daimler.

Chauffeur Privé is set to bolster the auto giant’s Mobility Services division. The group already operates several transportation apps with some 17 million users among them. Plus, Daimler recently led a $200 million funding round into New York-based Via Transportation Inc. to launch a joint carpooling service.

The acquisition of Chauffeur Privé should put the company in a better position to take market share from Uber Technologies Inc., which suffered a potentially major regulatory blow this week. A European Union court decided on Wednesday that the ride-hailing provider should be classified as a transportation company like regular taxi operators. The ruling will enable EU member states to enforce stricter regulations on Uber in 2018.

But Uber is not the only competitor that Daimler will have to contend with. Several smaller ride-hailing startups operate throughout Europe, while major U.S. automakers are building out their own ride-hailing apps. Ford Motor Co. in November applied for a permit to bring its on-demand Chariot shuttle service to London.

Then there’s Lyft Inc., which recently moved outside the U.S. for the first time by bringing its service to Toronto. The startup earlier held “high-level talks” with London municipal officials in a potential prelude to a U.K. expansion. Lyft’s international ambitions could very well see it follow Uber to Europe, which would create yet more competition for Daimler.

Image: Daimler