Daimler and BMW jointly invests €1B to dethrone Uber, ahead of its IPO

Daimler, an automotive company that produces premium cars and commercial vehicles have inked a deal with BMW to invest in services such as driverless vehicles, ride-hailing and parking services to take on Uber and Lyft. Notably, the German firms invested around €1 billion into this joint venture.

Uncertainty in auto industry!

This strategic move comes ahead amidst the uncertainty in the auto industry with a decline in sales, trade war and other issues. In this regard, the automakers are developing a new business model instead of concentrating on ownership.

Secondly, the Uber prepares for an IPO that values around $120 billion. The duo believes that by combining their efforts they can command the field.

1000 jobs will be created!

Having said that, this joint venture will combine Daimler’s Car2Go and BMW’s DriveNow, ParkNow and ChargeNow businesses. As a result of this tie-up, as many as 1,000 jobs will be created. Moreover, the company is expected to co-operate or acquire startups if needed to gain weight.

The venture has five strands: REACH NOW, a smartphone-based route management and booking service, CHARGE NOW for electric car charging, FREE NOW for taxi ride-hailing, PARK NOW for parking services and SHARE NOW for car-sharing.

Harald Krüger, chairman of BMW’s management board, said: “These five services will merge ever more closely to form a single mobility service portfolio with an all-electric, self-driving fleet of vehicles that charge and park autonomously,”

He added, “The co-operation is the perfect way for us to maximize our chances in a growing market while sharing the investments.” It’s worth mentioning that, new branding and names will be introduced in the coming months.

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