Stellantis to buy car-sharing service from BMW & Mercedes

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Automotive giant Stellantis has announced it will be buying Share Now, a car-sharing business set up as a joint venture between Mercedes-Benz and BMW, as the two German automakers concentrate on the software element of their alliance.

Stellantis, which made the purchase through its car-sharing subsidiary Free2move, is looking to position itself as a leader in car-sharing, with the new acquisition part of that expansion. Share Now is an app-based service whereby customers use smartphones for short-term car rental in cities on a pay-as-you-go basis.

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"Integrating Share Now’s strong position in major European cities will allow our customers to gain greater access to a wider range of services to satisfy their varied mobility needs," said Brigitte Courtehoux, Free2move CEO

"Equally important, this acquisition will also accelerate our profitable growth. We are now a step closer to achieving our goal of expanding Free2move’s worldwide presence to 15 million active users by 2030."

Stellantis is betting on there being a global rise in demand for car sharing in light of the push to cut emissions. The company is looking to expand Free2move's worldwide cover, growing it to 15 million users.

The news comes just over a year after Stellantis was formed by the merger of Fiat Chrysler and PSA Group, covering brands like Peugeot, Jeep and Fiat.

The sale is the next step for BMW and Mercedes in their journey toward reshaping their offerings. The German automakers’ decision to sell Share Now underscores the challenges faced in making car-sharing profitable without the requisite scale.

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While Share Now is the market leader in Europe and has introduced options for longer-term rental, it has still struggled to make a profit.

While the companies did not disclose the price of the deal, Bloomberg quoted Bankhaus Metzler analyst Juergen Pieper as estimating it was around €250 million.

Stellantis will now merge Share Now into Free2move.

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