Stellantis planning to acquire Mercedes-BMW car-sharing joint venture
Category: #business |   By Pankaj Singh |   Date: 2022-05-05

Stellantis planning to acquire Mercedes-BMW car-sharing joint venture

According to sources close to the situation, Stellantis N.V. will soon acquire Mercedes and BMW’s car-sharing venture called Share Now. This is the latest shakeup in the automotive industry as carmakers race to make mobility services profitable.

Free2Move, Stellantis’ mobility brand, is yet to disclose the price for buying the car-sharing venture, which is claimed to have at least 3.4 million customers across 16 cities in Europe. The move could also help Stellantis boost new revenue streams in its electrification efforts.

For those unaware, Mercedes and BMW started offering mobility services in 2008 and 2011 respectively to attract younger buyers to their brands as well as to keep up with the ever-evolving mobility landscape in urban cities. The sale also marks another milestone in transforming mobility services for Mercedes and BMW, which merged their respective services back in 2018 to rival Uber as well as save costs.

Share Now is one of the leading mobility services in Europe and has added long-term rental options, although it has struggled to generate a profit since its inception, sources claimed. The German automakers’ plans to ditch the car-sharing service highlight the challenges faced by these companies while making such services profitable.

But given Stellantis’ broad presence in North America, the company might have better opportunities for car-sharing success. The automaker will also soon replace the German vehicles with its American counterparts gradually.

Meanwhile, Stellantis’ biggest European competitor Volkswagen AG will acquire Europcar as a part of its broader push to create a prominent mobility services platform. VW’s deal is expected to be closed before the end of Q2 this year.

Stellantis will expand Free2move’s reach across the globe, expanding to 15 million active users as well as generating net revenues of around USD 2.96 billion. The company intends to achieve these double-digit returns by the end of the decade by deriving extra revenue from new services as well as cutting costs.

Source Credits –

https://gulfbusiness.com/stellantis-to-buy-mercedes-and-bmws-car-sharing-venture/

  • shareShare
  • Twitter
  • Facebook
  • LinkedIn


About Author

Pankaj Singh     Twitter

Pankaj Singh

With a commendable experience of content creation under his belt, Pankaj Singh, a qualified Post Graduate in Management, boasts of having worked as a freelance writer and an insurance underwriter. Additionally, Pankaj has also enriched his qualification portfolio with Read more...

More News By Pankaj Singh

U.K.’s economy to slump worse than other countries in 2023, says IMF

U.K.’s economy to slump worse than other countries in 2023, says IMF

By Pankaj Singh

The U.K. economy is reportedly set to decline and perform worse as compared to other major nations, notably Russia, as the cost of living remains high, as per the International Monetary Fund (IMF). According to the IMF, the economic output would d...

Oil prices hike as China curbs travel rules and US fights winter storm

Oil prices hike as China curbs travel rules and US fights winter storm

By Pankaj Singh

Oil prices reportedly surged to record a three-week high as China lifted its zero-covid policy and extremely cold weather in the United States forced refinery closures along the critical Texas Gulf Coast. Brent crude rose 88 US cents, or 1.1%, to ...

EU accepts carbon market access for $21.3 billion in the energy shift

EU accepts carbon market access for $21.3 billion in the energy shift

By Pankaj Singh

The European Union (EU) policymakers have reportedly agreed to raise nearly $21.3 billion (€20 billion) from the carbon market of that region, to support financing the bloc's strategy to alleviate its reliance on Russia for natural gas in a ...