The ShareNow car-sharing service is changing hands. The Stellantis subsidiary Free2move has signed an agreement to take over the joint venture previously operated by BMW and Mercedes-Benz Mobility. The French mobility service provider is thus expanding a car-sharing fleet by around 10.000 vehicles to 12.500 cars.
ShareNow emerged in 2019 from the Mercedes subsidiary Car2go and the BMW competitor DriveNow. After the cessation of all non-European activities, the Car-Sharing provider is currently still represented in Germany, Italy, Spain, Austria, Hungary, Denmark and the Netherlands. The largest location is Hamburg with 1.100 vehicles, which are rented to registered customers in the so-called free-floating model. Customers can start and stop the vehicles anywhere in the entire operational area. In addition to the car sharing service, Mercedes and BMW operate other mobility services, such as finding a parking space or charging electric cars. The mobility-as-a-service platform FreeNow is also to be retained.
With the takeover of the largest European car sharing provider, Free2move wants to become number one itself, not just in Europe but globally. The service has recently also been active in the USA. The Stellantis subsidiary emphasizes the profitability of the business model and hopes for economies of scale and synergies. By 2030, sales of mobility services are expected to increase to 2,8 billion euros
Has car sharing failed?
The sale of Share Now does not declare the car-sharing principle bankrupt, nor does it mean that the shared-car idea is wrong. It's just another example of how to punish those who are early and those who don't want to keep going.
It's the future, stupid!
ShareNow's losses have exceeded the one billion mark since it was founded. Does this mean that car sharing is stillborn? No, there are systemic problems that have not been able to be gotten under control so far, at least that's how it seems. Or is it simply at odds with the long-term strategy horizon of DAX companies? A CEO change here, a pandemic there and then, quite incidentally, a crisis and a diesel gate. No matter what hurdles the automotive industry has to contend with, the strategy of sharing a car in the future is not wrong just because the car-sharing business model has so far been misused for short-term registration peaks.
Free floaters versus rental cars
The concept of renting a vehicle in a metropolitan area via smartphone and simply leaving it where you no longer need it not only sounds likeable – it is. And the Corona period and the home office model in particular have had a positive impact on the business development of free float landlords. For premium manufacturers such as Mercedes-Benz and BMW, the “we rent a car, but we are not a rental company” model was an attractive solution for opening up new sales channels. The fact that the commitment in this area is now terminated prematurely and the good idea is sold to a competitor also shows that there are rightly different perspectives on the problem areas.
Automobile manufacturers have to transform themselves. Automobile manufacturers have to rethink sales channels and Mercedes-Benz has only just switched the sales model to an agency model. This takes the lead in setting sales prices and shrinks car dealers to outlet stores with online sales. However, Mercedes-Benz also wants to return to the premium concept. A luxury brand and free-floater rental car, whose external appearance is not always positive in everyday life in the big city, do not seem to go together. The reasons to part with the company "Share now" are clearly not because the business model is wrong. It is a purely political decision.
For Stellantis, the purchase is a logical decision and also a real expansion step. An easy-to-control sales channel for your own products and the classic buyer of the Stellantis brands is rarely found in the premium segment anyway. This does not create any tension.
