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Daimler and BMW invest €1bn into joint venture to battle Uber

Jill Petzinger
Jill Petzinger, Germany Correspondent, Yahoo Finance UK

German car giants Daimler (DAI.DE) and BMW (BMW.DE) unveiled plans for joint ride-hailing, parking, and other mobility businesses on Friday, announcing they will pool resources on the new joint venture.

They will invest €1bn (£870m) to deliver five new services to take on the likes of Uber and Didi Chuxing.

“We are pooling the strength and expertise of 14 successful brands and investing more than €1 billion to establish a new player in the fast-growing market for urban mobility,” said Daimler chairman Dieter Zetsche.

BMW chairman Harald Krüger said: “We are creating a leading global game changer. 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.

BMW CEO and Chairman Harald Krueger and Daimler CEO Dieter Zetsche at a press conference in Berlin to present plans for combining their companies’ car sharing businesses. Photo: Reuters/Axel Schmidt.

Krueger added that the new service portfolio was going to be a key cornerstone of their mobility strategy, and working together “is the perfect way for us to maximise our chances in a growing market, while sharing the investments.”

READ MORE: BMW and Daimler say consumers can trust them with data

The five services will be: REACH NOW for multimodal services, CHARGE NOW for charging, FREE NOW for taxi ride-hailing, PARK NOW for parking and SHARE NOW for car-sharing. 

The luxury-car rivals had already agreed to merge their car-sharing businesses Car2Go and DriveNow and their ride-hailing services in March 2018. The merger received EU and US regulatory approval at the end of last year.