VISION mobility kostenlos Probelesen
Die Zeitschrift VISION mobility richtet sich an mobilitätsbegeisterte Menschen bzw. Flottenmanager und begleitet den Technologiewandel in Sachen Automotive und Mobilität.
Aktueller Termin
Meist gelesen
Farewell to FreeNow – Is the Uberization of the mobility platform looming?
Now it seems final: BMW and Mercedes-Benz will part ways with their joint mobility platform FreeNow. According to a report by "Manager Magazin," the sales negotiations are nearing completion. The U.S. ride-service provider Lyft is being discussed as a potential buyer.
Who is Lyft?
Lyft is a U.S. service company. As a direct competitor to Uber, the ride-service intermediary currently operates only in North America and claims a market share of 39 percent there. Like Uber, Lyft acts solely as an intermediary for rides.
The purchase price is expected to be in the mid-double-digit million-euro range. This marks a consequence by the two German automakers from a business development that did not bring the hoped-for success.
Second Attempt at a Sale
Back in 2020, there were discussions about selling FreeNow. At that time, Uber was considered a potential buyer, reportedly with a purchase offer of up to one billion euros. However, the negotiations ended without a result. Now, a change of ownership could occur on the second try – although likely under significantly different financial conditions.
Large Investments, Low Returns
The idea of building a profitable business field with digital mobility services alongside traditional car manufacturing once led BMW and Daimler (now Mercedes-Benz) to combine their car-sharing and ride-hailing offerings. At the beginning of 2019, the companies invested over a billion euros in expanding FreeNow and other mobility services. The goal was to create a European counterbalance to the large US platforms like Uber or Lyft.
However, the economic expectations were not met. Despite a growing user base, the platform businesses proved to be costly and not very lucrative. Under the leadership of CEO Ola Källenius, Daimler, in particular, was increasingly eager to separate from loss-making business areas. The production of Smart had already fallen victim to a stricter cost policy. The upcoming sale of FreeNow is part of this strategy.
Market with High Barriers
FreeNow, originally launched as MyTaxi, had developed into the central European provider for ride-hailing by acquiring and integrating various ride-service apps like Kapten (France), Beat (Greece), and Clever Taxi (Romania). Nevertheless, the breakthrough did not happen. Competition from Uber, Bolt, and other providers put FreeNow under pressure. At the same time, regulatory hurdles in many European markets made it difficult to expand the business model.
The economic strain caused by the coronavirus pandemic further increased the pressure to act. Instead of continuing to invest in a risky business, BMW and Mercedes-Benz are now increasingly focusing on their core business with vehicles.
A Sign for the Industry
The planned sale of FreeNow sends a clear signal: Mobility platforms, once considered the future of urban transportation, are not an automatic success for traditional automotive companies. The hope of quickly tapping new revenue streams through digital business models has, at least in this case, not been fulfilled.
If the sale to Lyft goes through, another American provider would shape the European mobility market. What long-term effects this will have on taxi companies and other ride services remains to be seen. One thing is certain: the competition in the industry remains tough – and traditional taxi companies will continue to have to face new challenges from platform providers.
Can Lyft Taxi?
Freenow recently focused on taxis and finally dissociated itself from the rental car business at the beginning of this year. At the same time, the mobility service provider entered into initial cooperations with taxi centers – Stuttgart was the first, and other centers have now also decided to collaborate with Freenow or are about to.
What it means when an Uber-like service takes over the helm at Freenow is not yet foreseeable. The taxi market in Germany is characterized by high complexity. It is doubtful that an American platform operator will develop a particular interest in the concerns of taxi entrepreneurs. In the best case, Lyft will let the proven team around Alexander Mönch continue developing the leading nationwide functioning taxi app undisturbed, and in the worst case, we will witness the "UBERization" of the mobility platform Freenow.
Content automatically translated.
Taxi-Fahrzeuge (Pkw) , Taxi-Newsletter, Taxameter, Taxi-Fahrer , BZP – Deutscher Taxi- und Mietwagenverband , Straßenverkehrsordnung (StVO) , Krankenbeförderung , Weiterbildung , Taxi-Konzessionen , Verkehrspolitik , Mietwagenbranche , Taxi-Apps , Berufskraftfahrer-Qualifikations-Gesetz BKrFQG) , Taxizentralen , Personal, Gehälter, Arbeitsschutz , Wirtschaftsnachrichten , Werbung , Taxi-Folierung , Taxi-Umrüster , Straßenverkehr , Elektromobilität, Taxifuhrpark und -flottenmanagement , Taxi-Versicherungen , Hybrid, Diesel, Erdgas , Taxi-Magazin
