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Daimler joins BMW in $1.1 billion mobility bet to rival Uber

Harald Krueger, the CEO of BMW, left and Dieter Zetsche, the CEO of Daimler/Bloomberg

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The German venture, which is estimated to become the world’s largest car-sharing operator, will weigh purchases of start-ups or 30 established players.

Sunday 24, February 2019

(Bloomberg) --Daimler and BMW are pouring more than EUR 1 billion ($1.13 billion) into their joint car-sharing and ride-hailing businesses to take on the likes of Uber Technologies and Careem Network

The investment will create up to 1,000 jobs across five units including electric vehicle charging and parking services, initially focused on the European market.

The timing is striking given Uber, Careem and Lift are both preparing to list shares on the market. Uber, about three times as large as the Daimler-BMW operations by revenue, has drawn valuation estimates as high as $120 billion.

The carmakers are betting their unified platform will resonate with investors, Daimler Chief Executive Officer Dieter Zetsche said in a Bloomberg Television interview. “For now,” the carmakers have no plans for a share sale of the division, Zetsche told reporters at a press conference.

The new venture, announced almost one year ago, will combine Daimler’s Car2go and BMW’s DriveNow to create the world’s biggest car-sharing operator by users, according to BloombergNEF. It also includes Daimler’s MyTaxi, Europe’s largest ride-hailing app. The companies set up their respective car-sharing businesses years ago but have struggled to turn a profit.

“The five services will melt together more and more into a mobility offering with fully electric and self-driving fleets,” BMW CEO Harald Krueger said. “This will be a central pillar of our strategy as a mobility provider.”

TAGS : Daimler, BMW , Uber Technologies , Careem Network, Car2go, DriveNow

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