Not long ago, German news outlets reported that BMW and Daimler are looking to sell some of their joint-venture businesses. Number one on the selling block was the most valuable of them all, the FreeNow ride-sharing app. Uber was apparently interested in buying it and now we also have a reported figure for the transaction: $1.2 billion. The report comes, once again, from German sources and seems valid.
While most companies would jump at the chance of getting 1.2 billion dollars right now, considering the troubling financial status of the industry right now, it looks like BMW is reticent to accept the deal. Daimler is apparently ready to sell but BMW CEO Oliver Zipse sees a future in this business and isn’t willing to part with it so easily. According to the report, he’s willing to allow Uber to buy a share into the company, but not sell it in its entirety.
The move would be a big one in the ride-sharing market, where FreeNow has a foothold in various markets, rivaling Uber. Of course, the sale would probably have to be approved by various authorities that would check a monopoly wouldn’t form after the acquisition. BMW-Daimler’s business is booming in Europe and Latin America, where Uber could use a bit of help, right now.
FreeNow is not the only joint-venture business BMW and Daimler are looking to move. ParkNow is also on sale, according to a report published earlier this month. The business focused on finding convenient parking in busy cities, has apparently fallen out of grace with the higher-ups and is now on sale, the two German companies looking for more cash to finance their main businesses during these tough times.
Few of the five joint-venture businesses Daimler and BMW set up together are profitable, therefore keeping them running would be an unnecessary risk right now.