BMW and Daimler agree to combine mobility services
The BMW Group and Daimler AG are joining forces to offer customers a single source for sustainable urban mobility services. The two companies signed an agreement to merge their mobility services business units. Subject to examination and approval by the responsible competition authorities, the companies plan to combine and strategically expand their existing on-demand mobility offering in the areas of carsharing, ride-hailing, parking, charging, and multimodality. Each company will hold a 50% stake in a joint-venture model comprising both companies’ mobility services. The two companies will remain competitors in their respective core businesses.
The partners intend to offer their customers a holistic ecosystem of intelligent, seamlessly connected mobility services, available at the tap of a finger. Together, the BMW Group and Daimler AG plan to grow this new business model sustainably and enable rapid global scaling of services. Working as partners, both companies are thereby addressing the challenges arising from urban mobility and changing customer wishes, and cooperating with cities, municipalities, and other interest groups to improve quality of life in major cities. The merger will promote electromobility, for example, by offering electrified carsharing vehicles, as well as easy access to charging and parking options. As a result, it will become even easier to experience and use sustainable mobility services.
“The BMW Group is shaping future mobility—and striking out in new directions to do so. Our Strategy NUMBER ONE > NEXT provides the BMW Group with a roadmap to a digital and emission-free future,” said Harald Krüger, chairman of the Board of Management of BMW AG. “Combining our mobility services as planned will create a unique digital ecosystem. This alliance will make it easier for our customers to discover the emission-free mobility of the future. We remain competitors when it comes to the best premium vehicles. The planned merger of our mobility services will pool our resources and sends a strong signal to our new competitors,” added Krüger.
“As pioneers in automotive engineering, we will not leave the task of shaping future urban mobility to others. There will be more people than ever before without a car who will still want to be extremely mobile. We want to combine our expertise and experience to develop a unique, sustainable ecosystem for urban mobility,” said Dieter Zetsche, chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars. “At Daimler, we are vigorously and systematically pursuing our transformation from automobile manufacturer to provider of mobility services with our CASE strategy. CASE stands for connectivity, automated driving, sharing & services, and electric mobility.”
“The future of mobility lies in cities: The key to more liveable cities is in intelligent and seamless services that are easy to use and combine sustainable modes of transport and mobility services,” noted Peter Schwarzenbauer, member of the Board of Management of BMW AG, responsible for MINI, Rolls-Royce, BMW Motorrad, Customer Engagement, and Digital Business Innovation BMW Group. “The pioneering work and commitment of the employees who provide our services have laid a valuable foundation. I would like to thank them very much indeed for all that they have done,” Schwarzenbauer continued.
“The sustainable mobility of tomorrow is flexible and connected—a vision we share with our partner, the BMW Group,” explained Bodo Uebber, member of the Board of Management of Daimler AG, responsible for Finance & Controlling and Daimler Financial Services. “Together, we can offer millions of customers highly attractive products and services to make their lives easier and their environment a better place to live. The options offered by the planned joint venture-concept will complement mobility services offered by cities.”
The equally owned joint venture model is designed to combine services in the following five areas:
- Multimodal and on-demand mobility with moovel and ReachNow: Intelligent and seamless connectivity between different mobility offerings—including booking and payment—will create significant added value for users. It will also offer possible solutions for the challenges of urban private transport.
- Carsharing with Car2Go and DriveNow: Car2Go and DriveNow operate 20,000 vehicles in 31 major international cities. CarSharing enables better use of vehicles and thus helps reduce the total number of vehicles in cities. More than four million customers already use these CarSharing services.
- Ride-hailing with mytaxi, Chauffeur Privé, Clever Taxi, and Beat: With Europe’s largest taxi app, simply order a taxi or use a licensed driver in France for a ride in the French metropolises. In total, 13 million customers and some 140,000 drivers are already using the method of ride-hailing with mytaxi, Clever Taxi, and Beat or private hire vehicle service Chauffeur Privé. Innovative offers such as mytaximatch, in which people not known to each other share a taxi at a fingertip, make an important contribution to reducing inner-city traffic by eliminating numerous individual trips in the urban space.
- Parking with ParkNow and Parkmobile Group/Parkmobile LLC: Ticketless, cashless on-street parking or help finding, reserving, and paying for off-street parking in a garage. Innovative digital parking services reduce the time and the amount of driving involved in finding a parking space. This will reduce traffic significantly, as cars searching for parking spaces currently account for around 30% of road traffic.
- Charging with ChargeNow and digital charging solutions: Easy access (location, charging, and payment) to the world’s largest network of public charging stations with more than 143,000 charging points worldwide. Combined with parking privileges in cities, this will support the expansion of electromobility by helping people get to know this drive technology and integrate it easily into their mobility needs.