Stellantis buys car-sharing business as BMW, Mercedes take different route

Industry:    

Stellantis has agreed to buy the Share Now car sharing business from BMW and Mercedes-Benz as the two German groups focus more on the software part of their mobility alliance.

Formed last year through the merger of Fiat Chrysler and Peugeot maker PSA, Stellantis wants to become a global leader in car-sharing, using this acquisition announced on Tuesday to expand its existing business in the area.

The deal reflects different approaches by carmakers who are trying to tap new sources of revenues beyond selling vehicles, most notably in the developing area of mobility services.

“We think this reinforces our belief that premium OEMs (manufacturers) like BMW and Mercedes will focus on private car ownership and less on fleet services,” Royal Bank of Canada analyst Tom Narayan said.

“Conversely, it makes sense that volume players like Stellantis are pursuing these alternative revenue streams.”

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