FreeNow: Are BMW and Daimler selling the platform to Uber?

According to a report by Manager Magazin, Daimler and BMW are considering selling their mobility joint venture, Free Now, to the US ride-hailing service Uber. There are said to be offers from Uber CEO Dara Khosrowshahi to the automakers in the triple-digit million range. Overall, more than a billion euros are being discussed, which could also be transferred through a stock exchange, as the Süddeutsche Zeitung has learned. The platform is considered the European market leader in app-based taxi and ride-hailing services. Nevertheless, it is apparently a subsidized business that requires constant incentivizing. Additionally, demand plummeted during the COVID-19 crisis. 

For Uber, the deal would have the advantage of gaining access to the largely strictly regulated taxi services market, which it has not yet been able to properly access in Europe. Within the joint venture, however, the interests are different. While Daimler CEO Ola Källenius expects profitability from each division individually and works council chief Michael Brecht also called for considering the sale of Free Now and Share Now, BMW is also considering that there will probably be fewer privately owned vehicles in the future. Here, with Free Now, it would keep the option of ride-hailing services open, alongside car sharing within Share Now.

Further expansion of the app: Integration of Emmy scooters

Just a few days ago, the Hamburg-based joint venture announced the integration of Emmy electric scooters into its app. These will be bookable in Hamburg and Munich with 400 units each and in Berlin with 800 scooters.

“We want to offer our customers various options from a single source and help cities reduce individual traffic with sustainable solutions," explained Alexander Mönch, Germany CEO of Free Now.

With Emmy, they have been able to gain a strong partner that meets these criteria and appeals to a young, urban target group.