BMW Acquires All Of DriveNow, Could Lead To Daimler Car2Go Merger

BMW has acquired Sixt SE’s stake in DriveNow, making the mobility service a wholly-owned subsidiary of the BMW Group.

The German automaker says the move provides it with numerous options for the ongoing strategic development of the service. According to Reuters, the move could ultimately lead to an alliance with Daimler’s Car2Go ride-sharing service.

BMW reportedly paid Sixt 209 million euros ($258 million) for its DriveNow stake. More than one million customers use DriveNow in 13 European cities, with a fleet of over 6000 BMW and Mini models available.

“In 2017 our customers drove over eight million kilometres with the DriveNow electric fleet – that is equivalent to driving round the globe more than 200 times on electric power. DriveNow not only reduces traffic and improves the parking situation in urban areas, but it is also supporting the breakthrough of electromobility,” DriveNow managing director Sebastian Hofelich said.

“Our aim is to win 100 million customers for our premium mobility services by 2025,” added BMW’s board member for Digital Business Innovation Peter Schwarzenbauer.

“With DriveNow as a wholly-owned subsidiary, we have all options for continued strategic development of our services in our hands. Our experience with mobility services supports our development of future autonomous, electrified and connected fleets,” he said.

Both BMW and Daimler officials refused to comment on a possible merger with DriveNow and Car2Go. However, a senior BMW executive who wishes to remain anonymous, recently said the two want to build a joint business in car-sharing, ride-hailing, electric vehicle charging and digital parking services.