Toronto, Ontario — February 25, 2019 — Two German OEMs are working together to build an ride-hailable autonomous fleet. BMW and Daimler will together invest $1.5 billion in autonomous vehicles, and a ride-hailing and pay-per-use fleet.
The joint venture will bring four of the OEMs’ subsidiaries Car2Go (owned by Daimler) and DriveNow, ParkNow and ChargeNow (BMW).
“The co-operation is the perfect way for us to maximize our chances in a growing market, while sharing the investments,” said BMW chair Harald Krüger
Both OEMs will maintain 50 percent stakes in in the venture, which is expected to employ 1000 people. It has also been rumoured that the OEMs are considering buying up a number of high-tech companies together.
“Further co-operation with other providers, including stakes in start-ups and established players, are also a possible option,” said Daimler CEO Dieter Zetsche.
The impact autonomous, hailable fleets of vehicles may have on the collision repair industry remains unclear. A decline in individual vehicle ownership, the norm for more than a century, may signal the end of the traditional insurer-driven business model.
