Berlin - German premium carmakers Mercedes-Benz and BMW unveiled a joint ride-hailing, parking and electric car charging business on Friday to compete with mobility services provided by Uber and other tech firms.
The companies said they would invest more than 1 billion euros (R15.8bn) to expand the joint venture, shifting beyond manufacturing and car sales towards pay-per-minute or pay-per-mile systems.
Consultancy PwC has said carmakers face marginalisation by cash-rich technology firms unless they develop services based on vehicle usage.
Established ride-hailing firms have been expanding. China's Didi Chuxing aims to build its business in Latin America and Uber is gaining a stranglehold on its US market.
"Further cooperation with other providers, including stakes in startups and established players, are also a possible option," Daimler's Chief Executive Dieter Zetsche said.