Recently, BMW, in collaboration with Daimler, has announced a brand-new joint venture which will cover services pertaining to the new-generation, including ride-hailing, driverless vehicles as well cars that can be paid per use.
The move comes as a surprise, more so because the two firms have been fierce rivals in the past. This venture will see the firms invest a whopping figure of €1 billion, translating into nearly £880 million, in this project. This service is also aimed at helping drivers in finding electric points of charging as well as parking spots.
It comes in the wake of carmakers facing intense competition, originating primarily from major providers of mobility services like Uber, Ola and various other technology-based firms. As a result, the two Germany-based firms expressed their interest in purchasing tech start-ups to boost their initiative.
A trend of expansion has been clearly noted in the already existing firms belonging to the ride-hailing market. For instance, DidiChuxing of China is already aiming to gain a strong foothold in the streets of Latin America. On the other hand, Uber has become a household name and is growing in leaps and bounds, when it comes to the US market scenario. Dieter Zetsche, who’s the CEO of Daimler, opined that doors will be wide open to accommodate co-operation when it comes to other providers, including having stakes in upcoming start-ups as well as already established players.
Both these companies have toiled hard in the development of autonomous technology when it comes to cars. The argument that traditional car manufacture companies must look at developing usage-based services instead of sales-based strategies, to gain the upper hand in their battle against tech giants, has been put forth by several analysts. For now, BMW’s ParkNow, ChargeNow and DriveNow businesses will tie up with Daimler’s car-sharing business named Car2Go. Both carmakers will hold 50% stakes apiece in this venture.