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DriveNow program expected to be profitable this year

News | February 13th, 2013 by 3
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Car sharing venture DriveNow, a partnership between BMW and European rental company Sixt AG, is expected to be profitable this year. The joint venture kicked …

Car sharing venture DriveNow, a partnership between BMW and European rental company Sixt AG, is expected to be profitable this year. The joint venture kicked off two years ago as a competitor to Daimler’s Car2go program going for the same market: car sharing in urban environments.

After setting up in four cities in Germany since its May 2011 start, DriveNow is looking to add a location in the country and another elsewhere in Europe in 2013.  According to Andreas Schaaf, the partnership’s managing director, DriveNow is looking at profitability from city to city.

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Membership in car-sharing services may surge 20-fold to almost 15 million people in Europe by 2020, according to consulting company Frost & Sullivan.

DriveNow offers a variety of BMW group vehicles, including MINI and even sporty models from M division.

This year, DriveNow will roll out 40 electric-powered Active E models in Berlin and 20 in Munich as part of a test trial to prepare customers for the introduction of the i sub-brand.

In Berlin, DriveNow users will be asked to drive the car to a recharging station when the battery gets too low and receive a bonus as a result, while in Munich the company’s fleet management will recharge the cars overnight.

[Source: Bloomberg]

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