FreeNow rumoured to be up for grabs
The two German carmakers that each hold just under 50 per cent of FreeNow, have commissioned the investment bank Lazard to gauge interest from potential buyers, according to news agency Bloomberg. Insiders told the publication that talks are private and at an early stage.
A deal could bring in up to 500 million euros, say the insiders, but it is not clear whether this is the hoped-for proceeds or the minimum price at which the two shareholders would be prepared to part with FreeNow. According to the informant, there is no certainty that the considerations will lead to a transaction.
Mercedes and Lazard did not wish to comment on the information when asked by Bloomberg. A BMW spokesperson only stated that “FreeNow is doing well and exceeding its current targets”. BMW also stated that it did not wish to comment on the rumors surrounding the possible sale. FreeNow itself did not respond to Bloomberg’s inquiry.
FreeNow is currently available in more than 150 cities in Europe. The core of the service was once called “MyTaxi”, but FreeNow now also offers e-scooters, car sharing and, in some cases, rental cars in addition to taxi services. In Hamburg, for example, FreeNow is also a partner of the city’s “ZukunftsTaxi” initiative to convert the city’s taxi fleet to electric vehicles.
A takeover could therefore offer competitors the opportunity to penetrate many major European cities or expand their own services there. There have already been rumors in the past that Uber was interested in a takeover, as was the operator of the South Korean taxi app “Kakao Mobility”. So far, however, no deal has been reached.
The two German carmakers – or in the case of Mercedes-Benz, the former Daimler AG – founded a joint venture for mobility services in 2019, which included FreeNow. Of these other mobility services originally started by BMW and Mercedes-Benz, the car sharing business called Share Now was taken over by the Stellantis mobility subsidiary Free2Move in 2022.
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