$1.1 Billion Mobility Partnership Announced By Daimler & BMW To Rival Uber

Two of the largest global auto companies BMW and Daimler have joined hands to forge a mobility partnership which would be worth one billion euro or $1.13 billion.

The basis or the foundation of this development was laid by the two companies back in March of 2018 when the companies have jointly announced that they would be getting together to form an alliance in their plans and ambitions to offer rivalry and competition to some of the tech giants into the transport industry such as Uber and China’s Didi Chuxing.

The latest announcement by the companies was essentially an update of the initial plan. Under the updated plan, the two companies would jointly develop five separate ventures which would then be “meshed” together in an attempt by the companies to adapt to and take advantage of the change in consumers’ tastes of the manner in which they travel around.

“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,” said Management Board Chairman of BMW, Harald Kruger in a statement Friday.

“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,” Kruger added.

The details of the functioning and offering of the different divisions were described vy the two firms.

The companies said that the service would be offered through a mobile app which can be used by users to chose where they want to travel to and the app would offer them multiple options about how the users can reach their destinations. In while this appears to a standard app, this app would additionally also allow consumers to book and pay for their travel in just one place before they embark on a bike rental, car-share or taxi.

The five different divisions would be comprised of a car-sharing app which would allow users to rent and pay for vehicles through their smartphones. This service is already being used by 20,000 vehicles across 31 cities, claimed Daimler and BMW. The two companies would now be expanded this service to other cities and countries as well as in the type and number of vehicles offered.

Another component is called park Now where in users would be able to locate, reserve and pay for parking service either on-street or in garages. According to the estimates of two companies, almost 30 per cent of the vehicles that one sees on the roads are in fact on the lookout for a parking spot.

The app segment called Free Now is a typical ride hailing service that would allow users to get access to taxis, private chauffeurs and e-scooters. The companies said that a customer base of 21 million has already been developed by this app which is currently operational in Europe and South America.

The last component of the 5 venture program of the two companies is the Charge Now app which would allow users of electric vehicles to know the locations of the nearest charge point.

(Adapted from AutoNews.com)

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