Daimler flooding Berlin with Smart cars, wants to take on Bmw’s DriveNow

Article by Christian A., on May 14, 2012

Daimler’s strategy to get a bigger share of Europe's emerging rent-by-the-minute urban auto market includes the installation of the largest fleet of its Car2go short-term rental service in Berlin last month. This means that Daimler’s Mercedes-Benz models now outnumber BMW's DriveNow products two-to-one.

Car2go's chief Robert Henrich said that what’s happening in Berlin is part of a bigger campaign to get the attention of urban consumers and increase sales from services as the appeal of being a car owner in the cities diminishes.

He believes that as the leader in this business, it’s to be expected that competition will show up. He said that this proves that it has the “correct” business idea. Because of the expanding customer base for rental cars, Daimler and BMW are improving their city-based services that enable drivers to rent by the minute.

Consulting group Frost & Sullivan said that the car-sharing membership in Europe is expected to increase to around 15 million people by 2020 from 700,000 at the end of 2011. Sales in this region for 2011 reached 13.6 million cars. Daimler’s Car2go service costs the same as DriveNow in Berlin at 29 cents a minute. Daimler considers this move as a means to get back the top position in the luxury-car segment from BMW by the end of the decade.

Daimler thinks that to reach its goal, it would have to expand the appeal, particularly with younger drivers. Stefan Bratzel, director of the Center of Automotive Management at the University of Applied Sciences in Bergisch Gladbach, Germany, said that car-sharing is similar to a paid test drive. He said that this opens the door wide for customers who have not considered buying a car. He said that this also helps its image. Middle-class consumers are those who are likely to be attracted to car sharing. [source: Bloomberg]

Topics: daimler, bmw, smart, germany

If you liked the article, share on:

Comments

Recommended

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries