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BMW Group extends mobility service offer in China by launching a Ride-Hailing business based in Chengdu
14.12.2018 Press Release
First foreign company in China to obtain a Ride-Hailing license +++ Ride-Hailing to complement existing Car-Sharing business +++
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Munich. Today, the BMW Group announced the launch of its Ride-Hailing service in Chengdu, the capital city of the Chinese province Sichuan as part of its premium mobility brand ReachNow. The BMW Group is the first foreign company in China to obtain a license to operate a Ride-Hailing service. By adding an additional premium mobility option to its existing Car-Sharing business in China, the company seeks to further expand its mobility services offering.
“We are excited to offer our new premium Ride-Hailing service in Chengdu, one of the largest Ride-Hailing hubs in the world embracing mobility solutions for a sustainable urban future” said Peter Schwarzenbauer, member of the Board of Management of BMW AG, responsible for MINI, Rolls-Royce, BMW Motorrad, Customer Engagement and Digital Business Innovation BMW Group. “Half our fleet of 200 BMW 5 Series are sustainable plug-in-hybrid vehicles and our highly skilled and trained drivers will ensure an exciting premium mobility experience,” he added.
The Ride-Hailing service will complement the current ReachNow Car-Sharing business which was started in Chengdu in partnership with EVCARD in December 2017 and runs a fleet of 100 BMW i3 electric vehicles. The new Ride-Hailing service offers an additional mobility solution for those who do not wish to get behind the wheel themselves, but would rather book a car with driver. Customers can use the BMW ReachNow App to either pre-book or instantly book a Ride-Hailing service.
The BMW Group views the expansion of mobility services as an important pillar of its Strategy NUMBER ONE > NEXT. With service offerings for on-demand mobility (DriveNow and ReachNow), parking (ParkNow) and charging (ChargeNow), the BMW Group is establishing a holistic ecosystem for the most pressing issues affecting urban mobility. The new business models tap into new customer groups and respond to the demands of its existing customers who appreciate individual, premium on-demand mobility exactly tailored to their requirements.
BMW Group expands footprint in China
The expansion of mobility services in China represents one of numerous strategic investments announced this year in China.
In 2018 the BMW Group has further expanded its footprint and the scale of its commercial success in China. The BMW Group announced together with its partner Brilliance China Automotive Holdings Ltd. (CBA) the early extension of the joint venture contract for BMW Brilliance Automotive (BBA) and the further deepening of the existing successful collaboration. Furthermore, the BMW Group intends to increase its stake in BBA from 50 percent to 75 percent. BBA will be investing more than three billion euros in its plants in Shenyang over the next few years. In 2020 the first fully-electric BMW - the all-electric BMW iX3 – will be built in China and exported to markets outside of China.
Additionally, the BMW Group has signed an agreement with the Chinese manufacturer Great Wall Motor to produce electric MINI vehicles in China through a mutual 50:50 joint venture. As well as electric MINI vehicles, the "Spotlight Automotive Limited" joint venture will also produce electric vehicles for Great Wall Motor. The establishment of the new company is subject to approval by the relevant Chinese authorities and the finalisation of business registration procedures.
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The BMW Group
With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises 30 production and assembly facilities in 14 countries; the company has a global sales network in more than 140 countries.
In 2017, the BMW Group sold over 2,463,500 passenger vehicles and more than 164,000 motorcycles worldwide. The profit before tax in the financial year 2017 was € 10.655 billion on revenues amounting to € 98.678 billion. As of 31 December 2017, the BMW Group had a workforce of 129,932 employees.
The success of the BMW Group has always been based on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy.