BMW Carshare Expands to More Cities Using a Franchise Model

DriveNow, the carsharing joint venture from BMW Group and car rental firm Sixt, sealed a franchise deal with OP Financial–one of Finland’s largest financial institutions–expanding the carshare service to Helsinki.

OP, which consists of 180 cooperative banks, will rollout the service on May 24.

DriveNow, formed in 2011, works via a mobile application that informs users where the nearest available car is located; rental is 57 cents a minute and includes parking, insurance, and fuel costs. The carshare currently operates in Berlin, Munich, Hamburg, Cologne, Dusseldorf, Stockholm, London, Brussels, and Copenhagen. In August 2015, Copenhagen became the first city where a franchise model was implemented with usage right owned by Arriva Danmark, making Helsinki the second franchise city.

DriveNow was not able to immediately respond to a request for comment.

As of last year, DriveNow operates a fleet of over 4,000 vehicles across its cities, with 20% of these vehicles being the electric BMW i3 models.

Electric vehicle sharing is an important role in driving forward electric mobility as a whole. EVs involved in carsharing boost the use of charging points in cities – and on a more predictable basis; in turn, this increases electric mobility visibility and makes electric vehicles more familiar to people, turning them from a niche commodity into an everyday reality.

For BMW, increasing electric vehicle adoption is a clear ambition.

“In 2017, we aim to sell 100,000 electrified vehicles, and by 2025, electric models and plug-in hybrids are expected to account for around 15% to 25% of our sales. This means the electrification of all BMW Group brands and model series,” Harald Krüger, chief executive of BMW Group, said at the company’s shareholder meeting in March.

  Like This Post