BMW and Mercedes-Benz are dumping ShareNow — their jointly managed car-sharing businesses — and Stellantis will reportedly become the recipient. Effectively a merger of BMW’s DriveNow and Mercedes’ (technically Daimler AG’s) slurry of similar services that were rolled into car2go, ShareNow’s individual components have spent the last decade trying to figure out which markets would embrace app-based, roadside rentals charging by the minute and which would reject it.
Having already launched the Care by Volvo subscription program, the Swedish-Chinese automotive brand wants to continue cramming feathers into its cap. It’s now launching a new mobility brand that sounds very similar to car-sharing services offered by numerous automakers and rental firms.
There could be an issue with the naming strategy, however. Volvo wants to call the company M, which is a letter of the alphabet that’s of particular interest for BMW. In case you’ve been in a coma for the last forty years, the German automaker has used the letter M (for Motorsport) to denote its performance division and affixes it to everything in its lineup with sporting pretensions. While it probably can’t claim ownership of all things relating to the mark, it’s definitely not going to be thrilled to see Volvo using it.
Automotive soothsayers have foreseen the coming Armageddon, where private car ownership vanishes and we’re all ferried around in robotic taxis or rental vehicles, and manufacturers have taken their divinations to heart. Either that, or the opportunity to diversity already successful companies is too tempting a prospect to pass up. As such, we’ve seen “mobility” become the new industry buzzword — used as a fill-in for electric vehicles, autonomous development, and ride-sharing/hailing programs.
Hoping to expand its own mobility services, Daimler has announced an openness to seek broader alliances just days after BMW Group bought out its rental car partner, Sixt, from their joint car-sharing program DriveNow. That sets the stage for a peculiar partnership, as the two German automakers have a long, competitive history with each other — one which sometimes results in passive-aggressive behavior.
Bitter rivals Daimler AG and BMW are planning to combine their car-sharing services —Car2Go and DriveNow — to compete with North America’s Uber car service. The two must be desperate to make headway into the world of vehicle ownership alternatives if they are willing to cooperate on the project.
BMW famously avoided a Daimler-Benz takeover in 1959 by convincing nearly every employee to invest back into the company, thus avoiding both bankruptcy and being forced to join with their main competitor. More recently, Daimler offered BMW employees free admission to the Mercedes-Benz Museum for BMW’s 100th birthday, where they could learn “the complete history of the automobile.”