Friday , August 19 2022

Daimler, BMW will invest 1.13 billion in JV mobility to compete with Uber



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BERLIN – Daimler and BMW unveiled a charging, parking and carrying electricity joint venture on Friday to compete with mobility services provided by Uber and other technology companies.

The automakers said they would invest more than a billion euros ($ 1.13 billion) to expand the joint venture, moving beyond the construction and sale of cars towards pay-per-minute systems or paying per mile.

"Further collaboration with other providers, including initial competitions and established players, is also a possible option," said Daimler's CEO's Dieter Zetsche.

The Car2Go Daimler car car brand will be combined with BMW DriveNow, ParkNow and ChargeNow, with both automakers holding a 50 per cent share in the venture.

The new venture has five elements: ReachNow, a route management and smartphone booking service, ChargeNow for charging for electricity, FreeNow for a taxi trip, ParkNow for parking services and ShareNow for short-term rental services.

"These five services will merge ever closer to forming one mobility service portfolio with an all-electric fleet, self-drive of existing and parked vehicles," said Harald Krueger, Chief BMW Executive

BMW and Daimler work to develop cars, autonomous vehicles that could enable them to finish the market for taxi and ride services.

The PwC Consultancy has said that automakers are facing marginalization by wealthy technology companies unless they are developing services based on the use of vehicles.

Established travel companies have been expanding. Didi Chuxing China aims to build its business in Latin America and Uber is gaining a downturn on its market in the United States.

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