Daimler Financial Sees ‘Good Growth’ in Mobility Services in 1Q

Daimler Financial Services continues to see “good growth opportunities” in the field of innovative mobility services, including moovel, MyTaxi, and car2go, according to Daimler AG‘s first-quarter earnings released yesterday.

car2go, in particular, further strengthened its market leadership for carsharing with a total of 2.3 million customers worldwide by the end of the quarter.

“We expect further ticketing growth with our moovel platform, which has already seen a 73 percent increase of ticket sales from Q1 2016 to Q1 2017,” Mary Beth Halprin, director of corporate communications for Mercedes-Benz Financial Services USA, told Mobility Buzz. Mercedes-Benz is under the Daimler AG umbrella.

“We further believe that, through partnerships and acquisitions, in addition to organic growth, that we can continue to expand our presence in the ridehailing market,” she said.

Daimler anticipates significant growth in new business and further growth in contract volume in the year 2017, according to the earnings. “This will be driven by the sales development of the automotive divisions, especially Mercedes-Benz Cars.”

Daimler Financial originated 447,00 leasing and loan contracts in the first quarter, up 23% from the same time a year prior, according to the earnings.

“We made a very good start to the year and once again surpassed our margin targets in the automotive business,” Bodo Uebber, a board member of Daimler AG and Daimler Financial’s head of finance and controlling, said during the earnings call. “We are very confident for the remainder of the year to achieve our financial as well as our strategic goals.”

Earlier this year, Daimler Financial Services acquired PayCash Europe SA, an electronic payments provider, thus entering the e-payment business. The acquisition enables Daimler to offer its own electronic payments service under the brand name Mercedes Pay, which provides customers with a simple and secure method of payment for digital services.

“Mercedes Pay is a fundamental component of our mobility and digitization strategy,” Uebber said in a company press release. “Daimler’s new payment system underscores our ambition, as a leading provider of digital mobility services, to make the products and services we offer even more appealing.”

In order to prepare the traditional financing and leasing business for digital sales structures, Daimler Financial also continued to invest in AutoGravity, the customer-focused app for comparing car financing, which is now offered in 46 states.

Additionally, Daimler AG worldwide unit sales were at 754,300 vehicles sold for the quarter, up 10% from the prior-year level. Mercedes-Benz Cars’ unit sales increased by 14% to 568,100 vehicles sold in 1Q, setting a new record in the reporting period, with record high unit sales for the first three months of a year in total, according to the report.

To learn more about the evolution of transportation, join us at the second annual Auto Finance Innovation 2017 conference, May 17-18 at the Hilton Bayfront in San Diego. Visit www.autofinanceinnovation.com to register or learn more. To request a media pass, contact Skylar Taylor at staylor@royalmedia.com.

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