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

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42

  • Hun Sen gets 4th Covid shot, urges compatriots to follow

    Prime Minister Hun Sen and his wife Bun Rany on January 14 received their fourth dose of Covid-19 vaccine and called on compatriots to follow suit as the Omicron coronavirus variant continues to spread in the community. This marks the launch of Cambodia's fourth-dose vaccination campaign,