Car News
January 17, 2011
BMW, Daimler AG Launch Car Sharing Programs
Why buy one luxury vehicle when you can have access to a whole fleet? That is the question that both BMW and Daimler AG are hoping consumers will consider as they embark upon new car sharing programs in Europe and the United States.
Dubbed BMW on Demand, Bavarian Motor Works' new car sharing pilot offers participants access to a wide variety of popular models in different colors and trim levels. Cars can be booked in person, on the internet or over the phone, with rates varying depending upon the model and time of day. Launched in Munich, Germany in the fall, the program has quickly gained traction amongst residents and plans are already in the works for expansion abroad.
In Austin, Texas and Ulm, Germany, Daimler AG, maker of the Mercedes-Benz marque, is testing out a car sharing program of its own. With a fleet of over 400 Smart fortwo minicars between Austin and Ulm, Daimler's Car2go project has attracted roughly 30,000 registered users in the past year. Through the Car2go program, customers can pick up and drop off vehicles at a number of locations throughout the city, and can even download a special iPhone app that allows them to find and reserve cars for their use. Thanks to the success of the car sharing experiment in its two test markets, Daimler is eager to further expand its operations in North America and Europe, and plans to announce new Car2go locations in the near future.
While car sharing is still a relatively new concept, it has been embraced by young adults in metropolitan areas as an alternative to the costly monthly payments and insurance fees that accompany vehicle ownership. Furthermore, many analysts see shared-car programs such as the ones run by BMW and Daimler as a possible solution to the growing problem of urban congestion.
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