Two competitors facing the future hand in hand

We’ve seen automakers team up for a variety of reasons, including the sharing of platforms to streamline development and drive down costs. Now, BMW and Daimler are teaming up for a combined effort to create the latest mobility services for customers.

Continue reading for the full story.

The Full Story

2017 Smart ForTwo Electric Drive High Resolution Exterior
- image 689198
The two competitors are now looking to combine their efforts to develop the next-generation of car sharing, ride-hailing, parking info, and electric vehicle charging services, among others.

At the moment, both Daimler (the parent company of Mercedes-Benz) and BMW operate a variety of mobility services around the world. For example, Daimler offers its Car2Go vehicle rental services in North America, China, and Europe, while BMW offers the ReachNow car-sharing service in select cities across the U.S.

Clearly, Daimler and BMW are at odds with one another, grabbing at whatever market share they can. However, the two competitors are now looking to combine their efforts on the new mobility front, creating a fresh joint venture to develop the next-generation of services in the areas of car sharing, ride-hailing, parking info, and electric vehicle charging services, among others.

Each company will have a 50 percent stake in the new joint venture. With their combined efforts, BMW and Daimler look to solidify their position against the onslaught of industry disputers leveraging modern technology to offer streamlined services to customers.

BMW Unveils 2018 i3 and i3s Exterior High Resolution
- image 728663
Each company will have a 50 percent stake in the new joint venture

Ride-hailing app like Uber and Lyft are considered particularly threatening, as the apps are now seen as potential replacements to traditional car ownership. With costs rising year after year (initial cost, car maintenance, insurance, gas, etc.), these apps fill the gaps, providing transportation to those who can’t (or choose not to) afford outright vehicle ownership.

However, properly leveraged, the old guard of makes (such as Mercedes or BMW) will be able to go tit for tat, offering their own options for the next-generation of mobility services.

Indeed, as more and more individuals opt into low-cost and high-convenience transportation solutions, developments like this may become more and more commonplace. The advent of self-driving technology is expected to shake things up even further, bringing robo-chauffeurs to every niche possible, eventually bringing costs down even further. As such, the big makes need to be ready.

References

BMW Unveils 2018 i3 and i3s High Resolution Exterior Wallpaper quality
- image 728636

Read our full review on the 2018 BMW i3.

2017 Smart ForTwo Electric Drive High Resolution Exterior
- image 689208

Read our full review on the 2017 Smart ForTwo Electric Drive.

no article
- image 741745

Read more BMW news.

no article
- image 743625

Read more Mercedes-Benz news.

What do you think?
Show Comments
Car Finder: