BMW and Daimler to focus on short-term car rental in Europe

BMW and Daimler to focus on short-term car rental in Europe

December 19, 2019 0 By autotimesnews

German automakers will leave the short-term car rental market in North America, the UK and two cities of continental Europe and focus on Europe.

On Wednesday, brand representatives said they would stop Share Now in Montreal, New York, Seattle, Washington and Vancouver, as well as in London, Brussels and Florence. Share Now, formerly known as Car2Go, is part of a joint venture between two German automakers.

The companies cited “the unstable state of global mobility” and “the growing infrastructure difficulties that North American drivers are facing today, and the associated costs necessary to maintain work.” According to Daimler representatives, last year Car2Go totaled 1 million participants in North America and 3 million worldwide.

    “In addition, despite all our efforts and investments in Brussels, London and Florence over the years, we cannot continue to work in a way that is sustainable for our business due to low adoption rates,” – the official statement says. .

The service will focus on the remaining 18 European cities where Share Now operates, the company said. The service allowed consumers to rent vehicles per minute and park them on the streets or in parking lots for free. The service has faced stiff competition from companies such as Uber and Lyft.

In 2018, Daimler bought the remaining 25% stake in Europcar in Car2Go for 70 million euros. At the beginning of this year, BMW and Daimler merged their Car2Go and DriveNow car sharing divisions, as well as travel, parking and charging services.