BMW Steps into Ride Sharing Space in the U.S. With ‘ReachNow’

A latest announcement from the stables of BMW could very well alter the auto industry as it stands today. The leading automaker has said that it is moving toward a business model that would entail ‘mobility services’ as a potentially high revenue contributor. What does ‘mobile services’ mean? In simple words, this means that the company is likely starting car sharing services, a business whose founding can be credited to companies such as Car2Go and ZipCar.

At BMW, the service is being referred to as ‘ReachNow.’ The service, which will first be rolled out in Seattle, will eventually be offered by the company in several other cities in the United States. The announcement was made by BMW in an official statement recently.

Why is the car sharing service from BMW so significant?

• The car sharing space is becoming increasingly competitive with a myriad of national and local companies trying their best to outdo one another. But with a mammoth company like BMW stepping into the space, the tremors will be felt over a wide distance – enough probably to prompt other auto giants to join the space as well.
• BMW is not a complete stranger to this business model. The company already has a program called ‘DriveNow’ that is currently operational in some cities in Europe. All the company now has to do is intelligently tweak its services to cater to the needs of commuters and travelers in the U.S. In fact, DriveNow made an ambitious start in San Francisco (U.S.) but parking problems forced the company to call it quits.
• The head honchos at BMW say are confident that their entry in the ride sharing space in the present times is a good move because customers are in need of a service such as this. What they want, according to BMW, is a solution that’s fast and uncomplicated.
• It makes sound business sense to BMW as well, as the revenue from the ride sharing business will smartly supplement their classic revenue stream.

However, it is expected the BMW will tread carefully considering its bitter experience with DriveNow in the U.S.