BMW, Daimler join forces in car-sharing

FRANKFURT, Germany — The German carmakers Daimler and BMW said on Thursday that they will merge their car-sharing businesses as they try to compete better with Silicon Valley companies out to upend the traditional automotive industry.

Daimler, the maker of Mercedes-Benz cars, and BMW said they would put their respective mobility services — an array of apps and services that provide transport options for people who may not own cars — into a joint venture in which they will own equal shares.

The alliance is a major departure for BMW and Daimler, longtime rivals for the affections of affluent car buyers. Along with Volkswagen’s Audi division, the pair dominate the global market for luxury vehicles. Still, they are in danger of being overwhelmed by the superior financial firepower of new competitors from the tech world. Alphabet, Google’s parent company, which has invested in autonomous car technology, has a stock market value ten times Daimler’s.

In addition to BMW’s DriveNow and Daimler’s Car2Go, which are like rental agencies but allow customers to book on short notice and use cars for brief periods, the agreement announced on Wednesday includes services that help customers hail taxis, find parking spots, and charge electric vehicles.

“As pioneers in automotive engineering, we will not leave the task of shaping future urban mobility to others,” Daimler CEO Dieter Zetsche said.