German car manufacturers Daimler and BMW announced about the final approval for the merger of their car-sharing service for DriveNow and Car2Go, paving the way for the creation of a European giant to compete with some leading one such as Uber.
In a joint statement, the two companies said they had received permission from US regulators to remove the last hurdle of the deal after the EU antitrust authorities had already agreed in November.
“Now that the approval of the rivalry authorities has been received, the goal is to close this deal by 31 January 2019”, according to Daimler and BMW. The agreement, announced for the first time in March, will show the dawn of a joint venture evenly by the two old rivals. Car2Go and DriveNow users will be able to rent BMW Minis and Smart Car of Daimler, as well as the flagship groups of vehicles of Mercedes-Benz and BMW, picking and parking them where ever it is possible and not staying restricted to rental location.
Together they have around 20,000 cars in 30 cities around the world, which are used by more than four million customers. In addition to combining their ride-sharing applications, Daimler and BMW announced that they would combine other mobility services, such as charging points for electric cars, taxi cabs, and parking location services. The deal comes as crucial automotive companies in Germany struggle to acclimatize to the anticipated future of battery-powered, highly interconnected, automated vehicles.
The emergence of new participants in Silicon Valley, the Uber giant or electric car manufacturer Tesla brought the German giants to act, similarly, the scandals around extreme harmful emissions from diesel engines and cartel allegations manufacturers are also some prime factors responsible for the German entry.