Partnerships / Acquisitions

German Automakers Seek To Merge Mobility Units

BMW and Daimler

As the worldwide market for ondemand mobility services, such as ridehailing and carsharing, heats up, BMW and Daimler are seeking to combine their mobility units. While both German automakers are known for their car brands, they have also invested in mobility services in recent years, VentureBeat reported.

“Combining our mobility services as planned will create a unique digital ecosystem,” BMW Chairman of the Board Management Harald Krüger said in a statement. “This alliance will make it easier for our customers to discover the emission-free mobility of the future. We remain competitors when it comes to the best premium vehicles. The planned merger of our mobility services will pool our resources and sends a strong signal to our new competitors.”

The planned merger is not a done deal and is subject to the approval of regulators. But, if it is approved, BMW and Daimler will each own half of the new business.

The news comes as Daimler announced its acquisition of Germany-based ridesharing company Flinc in 2017. Financial terms of the deal were not disclosed when the deal was announced, and it was reported that Flinc would continue to operate independently after the acquisition was completed.

Flinc has a focus on smart navigation, and Daimler’s Mobility Services division noted the acquisition was part of its strategy to “transition from being an automobile manufacturer to a mobility service provider,” according to TechCrunch.

“Transport options are just as varied as the mobility demands of our customers,” Jorg Lamparter, head of mobility services at Daimler, said. “Whether flexible carsharing, ride-hailing or door-to-door ridesharing, with our mobility services, we are able to provide the ideal solution. With Flinc, we are taking on an extremely well-coordinated team that brings valuable experience in the field of short-distance ridesharing.”

Daimler has also acquired German companies car2go and mytaxi, which included the acquisition of Hailo, Uber’s competitor in the ridesharing space.

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