BMW Group and Daimler have formally decided to join forces in order to provide connected mobility services to their customers. The two companies signed an agreement to that end today to merge their respective business units, headquartered in Berlin.

Subject to examination and approval by responsible competition authorities, BMW Group and Daimler AG plan to combine and expand their existing on-demand offerings in the areas of car-sharing, ride-hailing, parking, charging, and multimodality. Both companies will hold a 50 percent stake in the joint venture. However, the two companies will still be rivals in their core business: producing automobiles.

The aim of both the companies behind this move is to attain leadership in the innovative transportation services sphere. Both BMW and Daimler intend to be instrumental in shaping the mobility of the future and offer their customers new experiences in sustainable urban transport solutions. The partnership is aimed at providing the customers with a holistic ecosystem of intelligent, seamlessly connected mobility services, accessed through a few taps on a smartphone. The companies involved also intend to globally scale up the business model rapidly.

Working as partners, BMW and Daimler are addressing the unique challenges posed by urban transport services as and when they present themselves. The joint venture is also cooperating with cities, municipalities, and other groups to improve quality of life in major cities. For instance, the JV will promote electromobility by offering electrified car-sharing vehicles, in addition to easy access to parking and charging options.

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The BMW-Daimler JV will provide services in five key areas: On-demand mobility, car-sharing, ride-hailing, parking, and charging.

“The BMW Group is shaping future mobility – and striking out in new directions to do so. Our Strategy NUMBER ONE > NEXT provides the BMW Group with a roadmap to a digital and emission-free future,” said Harald Krüger, Chairman of the Board of Management of BMW AG. “Combining our mobility services as planned will create a unique digital ecosystem. This alliance will make it easier for our customers to discover the emission-free mobility of the future. We remain competitors when it comes to the best premium vehicles. The planned merger of our mobility services will pool our resources and sends a strong signal to our new competitors,” added Krüger.

Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars also had this to share at the occasion: “As pioneers in automotive engineering, we will not leave the task of shaping future urban mobility to others. There will be more people than ever before without a car who will still want to be extremely mobile. We want to combine our expertise and experience to develop a unique, sustainable ecosystem for urban mobility. At Daimler, we are vigorously and systematically pursuing our transformation from automobile manufacturer to provider of mobility services with our CASE strategy. CASE stands for connectivity, automated driving, sharing & services and electric mobility.”

“The sustainable mobility of tomorrow is flexible and connected – a vision we share with our partner, the BMW Group,” explained Bodo Uebber, member of the Board of Management of Daimler AG, responsible for Finance & Controlling and Daimler Financial Services. “Together, we can offer millions of customers highly-attractive products and services to make their lives easier and their environment a better place to live. The options offered by the planned joint venture-concept will complement mobility services offered by cities.”