Daimler (owner of Mercedes) and BMW will combine mobility services in a 50/50 venture that will include their car-sharing services to fight technology disrupters such as Didi Chuxing (China) and Uber (USA). The deal is said to include their ride-hailing, charging, parking and respective car sharing services (Car2Go and DriveNow). The venture is a fantastic example of industry incumbents altering their business models in response to digital disruption, an ever increasing global phenomenon.
The deal will not affect the two brands' competition in the luxury car market but will rather seek to offer customers a connected system of mobility services. Daimler Chief Executive Dieter Zetsche declared that "“As pioneers in automotive engineering, we will not leave the task of shaping future urban mobility to others.” The venture makes a lot of sense from a business perspective as customers are much more likely to be drawn to a singular app solution from both brands instead of standalone services.
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