Sixt-BMW DriveNow Partnership Exceeds Membership Expectations
Germany-based rental car company Sixt SE announced its DriveNow car-sharing venture with BMW has exceeded expectations, with profits to match.
Autoblog reports DriveNow’s success is linked to cities where the service has been in operation for at least a year, with new subscriptions coming online in a manner that completely caught CEO Erich Sixt off-guard:
We’ve been surprised about the explosion of new subscriptions, which has helped boost revenue. We didn’t expect such a dramatic rise in membership.
DriveNow, operating in five German cities and San Francisco, saw its membership jump from 215,000 at the end of 2013, to 300,000 at present. However, COO Julian zu Putlitz expects the service — which allows members to rent BMW’s X1 and 1 Series vehicles, as well as models from MINI — to see a “small-to-medium, single-digit” million-euro loss in 2014 due to startup costs.
As for the future, Sixt and BMW are in talks to expand DriveNow to 25 locations in Europe and the United States within the next five years.
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