Investing.com -- Uber (NYSE: UBER) announced on Monday that it has agreed to acquire Blacklane, a global chauffeur service company, as the rideshare giant expands its premium offerings targeting business executives and wealthy consumers.

The transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed.

Berlin-based Blacklane, founded in 2011, operates in over 500 cities across more than 60 countries through a mobile app and web booking platform that connects customers with independent local chauffeur services. The company provides airport transfers, city-to-city rides, and hourly bookings. Blacklane's backers include Mercedes-Benz Mobility AG.

The acquisition will bolster Uber Elite, a chauffeur service the company introduced a few weeks ago for frequent Uber Black riders and corporate account customers in Los Angeles and San Francisco. Uber is planning to expand the service to New York City.

Uber's premium ride options, which include Uber Comfort, SUV and Black, already account for more than $10 billion in annualized gross bookings, the company said last year, representing a 35% increase from the prior year.

Blacklane was valued at more than €500 million ($574 million) after a 2024 funding round. Its investors include Tasaru Mobility Investments, a subsidiary of Saudi Arabia's Public Investment Fund, as well as Gargash Enterprises LLC, Al Fahim Group and RI Digital Ventures.

"Premium travel is one of the most exciting growth areas of Uber's business. We want to offer the widest selection of options to meet our riders where they are: from the everyday commute to luxury rides," said Uber CEO Dara Khosrowshahi.

Blacklane founder and CEO Dr. Jens Wohltorf said the partnership "marks a significant milestone in Blacklane's next chapter and is a powerful step-change in introducing our service to new markets globally."

Competition in the luxury ride-hailing market has intensified. Last week, London-based Wheely, which specializes in serving business elites and high net worth individuals, announced it is expanding to New York City, its first US market. Five months ago, Lyft Inc. bought TBR Global Chaufferuing for $110 million.

Shares of Uber were trading roughly flat shortly after open on Monday.