According to Bloomberg, sources familiar with the matter have revealed that Mercedes-Benz Group and BMW Group are once again attempting to sell their ride-hailing joint venture, FreeNow.
The sources disclosed that Mercedes and BMW are working with financial services firm Lazard to assess potential buyers' interest in FreeNow, with the deal potentially reaching up to €500 million (approximately $521 million). However, they cautioned that discussions are still in the early stages, and there is no guarantee that a deal will be reached.
When approached for comment, representatives from Mercedes-Benz and Lazard declined to respond. A BMW spokesperson stated that FreeNow is currently performing well and exceeding its targets at this stage but refused to comment on a possible sale. A FreeNow representative also declined to comment, stating that its shareholders have "full confidence" in the company's strategy and positioning.
In 2019, Mercedes-Benz and BMW committed more than €1 billion to FreeNow in an effort to compete with Uber and Lyft. A year later, sources indicated that Uber had considered acquiring FreeNow. In 2022, BMW and Mercedes agreed to sell their car-sharing business, Share Now, to Stellantis.
According to FreeNow's website, the company operates in over 150 cities across Europe, offering services such as taxi rides, electric scooter rentals, car-sharing, and car rentals. Bloomberg noted that FreeNow could provide an opportunity for ride-hailing competitors to enter or expand in major European cities such as London.
In Europe, FreeNow's major competitors include Uber and Estonian mobility company Bolt Technology OU, which is exploring international expansion and preparing for an initial public offering (IPO). In contrast, Lyft remains focused on the North American market. South Korean ride-hailing app operator Kakao Mobility has also previously expressed interest in FreeNow.
As automakers shift their focus toward electric vehicle (EV) production, they are refocusing on core manufacturing and related technologies while adjusting their non-core business strategies. In January, Bloomberg reported that Mercedes-Benz was seeking to sell its car leasing business, Athlon. Additionally, General Motors recently sold its stake in an EV battery plant in Michigan to its South Korean partner, LG Energy Solution.
