Stellantis buys car-sharing business from BMW and Mercedes

FRANKFURT/MILAN, May 3 (Reuters) – Stellantis (STLA.MI) has agreed to buy the Share Now car-sharing business from BMW (BMWG.DE) and Mercedes-Benz (MBGn.DE) as the two German groups focus on software as part of their mobility alliance.

Created last year by the merger of Fiat Chrysler and carmaker Peugeot PSA, Stellantis aims to position itself as a global leader in car-sharing, using the step announced on Tuesday to expand its existing business in the region.

The deal reflects different approaches from automakers trying to tap into new revenue streams beyond vehicle sales, particularly in the developing field of mobility services.

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Brigitte Courtehoux, who heads Stellantis Free2move’s mobility division, said the deal was part of the group’s plans to grow the business’s net revenue to 700 million euros ($735 million) in 2025 and 2 .8 billion euros in 2030.

“We’re really going to accelerate in terms of revenue,” she said.

Stellantis said the deal would allow Free2move to add 14 major European cities and 10,000 vehicles to its current fleet of 2,500 carsharing vehicles, gaining more than 3.4 million customers.

“We’ve been breakeven since mid-2020, we know how to be profitable in this business,” Courtehoux said.

She added that the Free2Move fleet will not become 100% Stellantis but said “step by step we will have more and more Stellantis cars”.

No financial details were provided for the transaction. Italian daily La Repubblica said he was worth around 100 million euros.

Milan-listed Stellantis shares were up 2.1% at 0730 GMT.

Share Now pulled out of the North American market in 2019 in response to high maintenance costs and what the companies then described as “the volatile state of the global mobility landscape.”

At the end of 2020, BMW CEO Oliver Zipse fueled speculation of a reorganization of the mobility services alliance with Mercedes-Benz when he signaled the possibility of bringing in new partners or a possible sale. partial.

By selling the division, BMW and Mercedes-Benz will focus on the two remaining parts of their mobility cooperation: Free Now, an app that allows booking cars, taxis, e-scooters and e-bikes, and the charging infrastructure reservation application. Charge now.

“The new focus allows us to scale our business faster and therefore achieve profitable growth in the shortest possible time,” said Rainer Feurer, Head of Corporate Investments at BMW. ($1 = 0.9519 euros)

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Reporting by Christoph Steitz, Christina Amann and Giulio Piovaccari; edited by Barbara Lewis and Keith Weir

Our standards: The Thomson Reuters Trust Principles.

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