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German carmakers Daimler and BMW are teaming up on a ride-hailing, parking and electric car charging business, the companies announced last week.
The companies said they plan to invest more than 1 billion euros ($1.13 billion) to grow the venture, which will challenge companies like Uber. It’s notable that the companies would expand beyond building cars for a broader approach to the transportation business.
“We are creating a leading global game changer,” Harald Krüger, Management Board Chairman of BMW AG, said in a release. “The 60 million customers we already have today will benefit from a seamlessly integrated, sustainable ecosystem of car-sharing, ride-hailing, parking, charging and multimodal transport services. We have a clear vision: these five services will merge ever more closely to form a single mobility service portfolio with an all-electric, self-driving fleet of vehicles that charge and park autonomously and interconnect with the other modes of transport. This service portfolio will be a key cornerstone in our strategy as a mobility provider. The cooperation is the perfect way for us to maximize our chances in a growing market, while sharing the investments.”
The partnership will include five joint ventures:
Daimler’s Car2Go car-sharing brand will be combined with BMW’s DriveNow, ParkNow and ChargeNow businesses, with both carmakers holding 50 percent stake in the venture.
“As premium manufacturers, we have long been setting standards in the automotive industry and for our customers. In the premium vehicle business, we will continue to compete for customers. But our new portfolio for individual urban mobility on demand represents a logical extension to the value chain. Ultimately, we want to offer our customers as many options as possible for getting from A to B. In short, this is about driving, riding or being driven,” said Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars..