BMW is expanding its car sharing service ReachNow by adding ride hailing option to it. The service will be available in Seattle and Portland, US. Users can just request a professional driver or schedule one for up to a week in advance. This puts ReachNow in competition with Uber’s black car service, rather than UberX.
Driver’s are full-time employees (sourced through a third party) and they will be utilizing BMW X1 or BMW 3 Series vehicles. There is no surge pricing and the service costs $2.40 a mile.
Combining two services under one umbrella will allow BMW to observe which service is preferred in various conditions. The redesigned app also allows the users to compare price and time of arrival for each service.
Mercedes-Benz and Bosch to launch AV service in Silicon Valley
Daimler and auto components maker Bosch will launch a self-driving shuttle service around San Francisco in the second half of 2019. The two companies announced a partnership in April 2017 with a goal to deliver a self-driving vehicle by 2021.
Similar to other pilot programs, the service will offer rides for free on select routes to a limited number of users.
The city where the service will be launched, or number of vehicles are still unknown. Currently Mercedes S-Class is used for testing autonomous technologies, but it isn’t clear whether this is model will be used for the service.
On Bike Sharing
Founder of Europe’s one the first dockless bike sharing services, Pony wrote a short piece to describe what he has learned about the business in last couple years. Paul Adrien Cormerais makes several interesting conclusions about the market.
Firstly, “CAC = 0” — meaning that bikes ‘market themselves’, as long as they have high visibility (bright colors and etc.). He claims that 10% of entire population of the cities where Pony operates have registered on the app and 0 was spent in marketing.
Second, he discusses unit economics of bike — he warns about importance of bike build quality, their degree of independence, ease of intervention and asset cost. He also states that bikes do not have “economics of scale”, the price of a unit is quite similar no matter how many bikes are ordered. The average cost of a good shared-bike is $200.
Third, he compares bike sharing to popular shared mobility services like Uber and draws strong difference with them: according to him, bike sharing has no network effect, as well as, assets are owned by the company and OPs are managed internally. Lastly, he says the late movers actually have an advantage on this market, as they are able to modify bike designs based on lessons learned from other services.
Full story: Medium