December 18, 2019 - YOUR NOW paves the way for profitable growth at mobility joint ventures
In November Daimler Mobility AG informed the capital market that it is currently reviewing its Digital Mobility Solutions portfolio to strengthen the business by focusing on the most promising businesses and cities. As part of this process all YOUR NOW Joint Ventures have been analyzed and a roadmap to profitability was elaborated.
The Mobility Services businesses of YOUR NOW continue to show dynamic growth and increased the number of customers by 44% since the beginning of 2019 to almost 90 million. FREE NOW (formerly mytaxi), one of Europe's leading mobility providers, achieved a new record level: The annual GMV run rate (gross merchandise volume; platform revenues) will reach more than 2bn euros – increasing the previous year's figure significantly. The number of FREE NOW rides soared by 120% versus 2018 to 300 million in 18 European and Latin American countries this year.
However, in some cases realignment measures are required. SHARE NOW, in conjunction with its shareholders Daimler Mobility and BMW Group, has decided to close its operations in North America and cease operations in London, Brussels and Florence by February 29, 2020. Daimler Mobility as a 50% shareholder therefore has to adjust its at-equity result and book value of the SHARE NOW shareholding. These adjustments will lead to an impairment in the lower third of the 3-digit million Euro range for Daimler Mobility AG in the fourth quarter 2019. On this basis, Daimler Mobility AG now expects a return on equity between 14-16% instead of 17-19% in 2019.
The activities of YOUR NOW will be bundled in three columns: FREE NOW, SHARE NOW and PARK NOW &CHARGE NOW. The introduction of a new financial holding, effective January 01, 2020, will support the financial steering and ensure focused governance.
Daimler remains fully committed to the investment in YOUR NOW. The next steps are aligned among the shareholders and the Joint Ventures has the full support to execute the actions necessary to further grow the businesses and at the same time improve profitability. The shareholders are open to welcome new partners to foster the dynamic growth of the businesses.