BMW and Daimler, Once Rivals, Join Forces to Fend Off Silicon Valley
- 6 years ago
BMW and Daimler, Once Rivals, Join Forces to Fend Off Silicon Valley
Daimler, the maker of Mercedes-Benz cars, and BMW said they would put their respective mobility services — an array of apps and services
that provide transport options for people who may not own cars — into a joint venture in which they will own equal shares.
In addition to BMW’s DriveNow and Daimler’s Car2Go, which are like rental agencies but allow customers to book on short notice and use cars for brief periods, the agreement announced on Wednesday includes services
that help customers hail taxis, find parking spots and charge electric vehicles.
DriveNow, a car-sharing business offering a fleet of BMW
and Mini cars for customers in Europe, lost 34 million euros, or $42 million, on sales of €142 million in 2017, according to BMW’s annual report.
By JACK EWINGMARCH 28, 2018
FRANKFURT — The German carmakers Daimler and BMW said on Thursday
that they will merge their car-sharing businesses as they try to compete better with Silicon Valley companies out to upend the traditional automotive industry.
But it is still an open question whether traditional automobile manufacturers can be as agile and technologically savvy as Silicon Valley companies, like Uber and Google,
that are trying to change the very meaning of car ownership — and often have much greater financial resources.
By putting aside their longtime rivalry and merging their digital operations, BMW and Daimler hope they will be in a better position to compete with companies like Zipcar, a unit of Avis Budget Group
that is the largest car-sharing service in the United States, as well as bigger threats like Uber.
Daimler, the maker of Mercedes-Benz cars, and BMW said they would put their respective mobility services — an array of apps and services
that provide transport options for people who may not own cars — into a joint venture in which they will own equal shares.
In addition to BMW’s DriveNow and Daimler’s Car2Go, which are like rental agencies but allow customers to book on short notice and use cars for brief periods, the agreement announced on Wednesday includes services
that help customers hail taxis, find parking spots and charge electric vehicles.
DriveNow, a car-sharing business offering a fleet of BMW
and Mini cars for customers in Europe, lost 34 million euros, or $42 million, on sales of €142 million in 2017, according to BMW’s annual report.
By JACK EWINGMARCH 28, 2018
FRANKFURT — The German carmakers Daimler and BMW said on Thursday
that they will merge their car-sharing businesses as they try to compete better with Silicon Valley companies out to upend the traditional automotive industry.
But it is still an open question whether traditional automobile manufacturers can be as agile and technologically savvy as Silicon Valley companies, like Uber and Google,
that are trying to change the very meaning of car ownership — and often have much greater financial resources.
By putting aside their longtime rivalry and merging their digital operations, BMW and Daimler hope they will be in a better position to compete with companies like Zipcar, a unit of Avis Budget Group
that is the largest car-sharing service in the United States, as well as bigger threats like Uber.