An Uber rival backed by Mercedes is set to arrive in London on Wednesday after waiting almost a year to have its private hire licence approved by Transport for London.

Via, a New York start-up, will launch its ViaVan service, providing a shared-ride service where passengers travel with others going the same way, similar to UberPool.

Riders order a ViaVan using the app and can then arrange further pick-ups along the way in a similar manner to carpooling. Passengers may have to walk a short distance to reach their pickup point so the taxi doesn't have to travel too far away from its route.

ViaVan is a joint venture between the company and Mercedes-Benz, which invested $50m in Via last year.

It aims to offer a cheap alternative to Uber, while also cutting down on traffic by encouraging carpooling. Via also said it would take the least commission from its drivers compared to other ride-hailing services.