Berlin — German car makers Daimler and BMW unveiled a joint ride-hailing, parking and electric-car charging business on Friday to compete with mobility services provided by Uber and other tech firms. The luxury car firms said they would invest more than €1bn ($1.13bn) to expand the joint venture, shifting beyond manufacturing and car sales towards pay-per-minute or pay-per-mile/kilometre systems. Consultancy PwC has said car makers face marginalisation by cash-rich tech firms unless they develop services based on vehicle usage. Established ride-hailing firms have been expanding. China’s Didi Chuxing aims to build its business in Latin America and Uber is gaining a stranglehold on its US market. “Further co-operation with other providers, including stakes in start-ups and established players, are also a possible option,” Daimler’s CEO Dieter Zetsche said. Daimler’s Car2go car-sharing brand will be combined with BMW’s DriveNow, ParkNow and ChargeNow businesses, with both car makers ho...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now