BMW & Daimler team up to merge their autonomous car units

Automotive giants BMW and Daimler have entered into an agreement to merge their ride-hailing and car-sharing units. The new partnership will try to fend off competition from ride-hailing giant Uber.

As per the agreement, the joint venture which will be owned 50-50 percent by both the companies, will include five verticals- car-sharing, ride-hailing, parking, electric vehicle charging, and what they describe as “multimodal,” a term meant to cover the on-demand ordering and payment component of the business.

BMW CEO Harald Kruger, said, "Combining our mobility services as planned will create a unique digital ecosystem. This alliance will make it easier for our customers to discover the emission-free mobility of the future. We remain competitors when it comes to the best premium vehicles. The planned merger of our mobility services will pool our resources and sends a strong signal to our new competitors.”

Daimler CEO Dieter Zetsche said, "We want to combine our expertise and experience to develop a unique, sustainable ecosystem for urban mobility."

The merger, which will bring all of the two company’s mobility service businesses under one roof, is still subject to approval by antitrust regulators. If approved, it will create a potentially powerful force in the transport realm as competition continues to intensify around the world.