10,142.15113.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

BMW-Daimler ride-hailing venture steps up Uber challenge

Uber’s market value of $48.6 billion underscores investors anticipate technology firms will play a key role in shaping future transportation. Uber’s adjusted revenue is estimated to rise 15% to $12.9 billion this year, according to Bloomberg data.

Bloomberg|
Last Updated: Dec 16, 2019, 11.45 PM IST
0Comments
BMW-Daimler ride-hailing venture steps up Uber challenge
FRANKFURT: FreeNow, the ride-hailing venture owned by Daimler AG and BMW AG, expects to double revenue this year and next in a fresh challenge to Uber Inc in Europe and Latin America.

FreeNow’s so-called gross merchandise volume, which mirrors revenue, is forecast to reach about 2.4 billion euros ($2.7 billion) in 2019, Chief Executive Officer Marc Berg said in an interview in the venture’s glass-walled office space overlooking Hamburg’s Elbe Philharmonic Hall. The German carmakers on Monday unveiled a new holding structure for the partnership, which includes cars-sharing and other mobility services.

“We know it is aggressive and really ambitious, but we want to double our revenue again next year while further improving our pro-fitability,” Berg said. Half of the 130 cities in Europe and Latin America where the company that was previously named MyTaxi currently operates are already profitable, he said.

Mobility providers face intensifying pressure to show they can generate profit, as indicated by the lackluster stock performance of Uber and US peer Lyft Inc since their initial public offerings. Varying transport regulations across regions can complicate efforts to scale up, and authorities worldwide have increased scrutiny of background checks for drivers to address safety concerns.

Still, Uber’s market value of $48.6 billion underscores investors anticipate technology firms will play a key role in shaping future transportation. Uber’s adjusted revenue is estimated to rise 15% to $12.9 billion this year, according to Bloomberg data.
(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

Also Read

BMW, Daimler jointly developing inductive charging system

Even luxury goods makers like Apple, BMW , Daimler not immune to yuan swings

BMW, Daimler report strong gain in September sales

BMW, Daimler see July deliveries decline

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service