Joint business of BMW and Daimler leaves the USA and some European citiesDecember 21, 2019
Both concerns had previously merged their car sharing companies, creating a new joint venture called ShareNow. Despite huge investments, the business turned out to be unprofitable.
The expectations of experts and analysts turned out to be false. Car sharing was not as much in demand as there were offers. ShareNow announced its departure from the US market. A joint venture between BMW and Daimler previously teamed up to reduce costs and increase coverage. However, this did not help.
Moreover, ShareNow leaves not only the US market, but also large European cities: Florence, London and Brussels. This will allow the joint venture to concentrate on those countries and markets where the business service is in great demand. As for the future of such services, it seems that both BMW and Daimler are still experimenting.
BMW CEO Oliver Zipse said that “there are risky business models that rely on car use rather than car ownership. But they focus on very specific areas with a high population density in order to ensure high demand rates. ”
Recall that the union of BMW DriveNow and Daimler’s Car2go occurred only this year. They will finish their activities in the United States on February 29, 2020. Right now, ShareNow is still available in Montreal, New York, Seattle, Washington and Vancouver.
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