Logo of Phnom Penh Post newspaper Phnom Penh Post - BMW goes after share of Chinese ride-hailing

BMW goes after share of Chinese ride-hailing

BMW goes after share of Chinese ride-hailing

BMW AG is revving up to enter China’s sizable ride-hailing market in December amid a growing trend of traditional carmakers opting for diversified revenue streams.

The German carmaker said late on Wednesday that it has won a permit to conduct the business in Chengdu, Sichuan province, making it the first foreign company to receive such authorisation in the city, with the service to become available next month.

The service provider will be its wholly owned subsidiary, BMW Mobility Service Ltd, which was registered in Chengdu in April with a registered capital of 50 million yuan ($7.2 million).

The automaker did not reveal details including the number of vehicles in its fleet and its target customers, but it said more information will be released in December.

Going into the ride-hailing market in China marks a solid step in implementing the new strategy that focuses on auto-nomous driving vehicles, electric vehicles, connectivity and services, said the German carmaker.

BMW is one of the latest carmakers planning to enter the sizable ride-hailing market, as mobility is expected to generate more revenue and profit than car manufacturing down the road.

Strategy&, a consulting firm under PwC, said in a report in October that by 2030, mobility services will likely account for 30 per cent of the global automotive industry’s profits, compared with 26 per cent of profits from new car sales.

In China, on-demand mobility services, including ride-hailing, were worth $15 billion last year.

The number is expected to grow by 33 per cent annually to $201 billion in 2025, and $656 billion in 2030, according to the report.

BMW’s move also comes amid mounting competition in China’s ride-hailing market.

Leading player Didi Chuxing has been rectifying safety loopholes and problems after a number of accidents and criminal incidents.

Carmakers are starting to adapt to and take advantage of the change. Earlier this year, US carmaker Ford signed a deal with its Chinese partner Zotye to build a joint venture that is dedicated to providing customised electric vehicles to fleet operators and drivers. CHINA DAILY

MOST VIEWED

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Hun Sen: Lakes filled in for national developments

    Prime Minister Hun Sen has announced continued operations to fill some lakes in Phnom Penh to create land for developments, though he is against the unrelated practice of damming rivers or blocking waterways. Speaking at the inauguration of the Ministry of Public Works and Transport

  • Koh Preus upgrades 70% complete

    Initial construction of a nearly $30 million tourism infrastructure project on Preah Sihanouk province’s Koh Preus Island is “about 70 per cent complete”, according to an official with the developer. Heng Thou, construction site manager of Angela Real Estate Co Ltd (ARE), told The Post that

  • Local media loses a giant, and The Post a great friend

    Cheang Sokha, a gifted and streetwise reporter who rose to the highest ranks of Cambodian media and was beloved for his sharp intelligence, world-class humour and endless generosity, died on Friday in his hometown of Phnom Penh. He was 42. His wife, Sok Sophorn, said he