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(Bloomberg) -- Mercedes-Benz Group AG and BMW AG are making a fresh attempt to sell their jointly owned taxi-hailing app FreeNow, according to people familiar with the matter.
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The carmakers, who both own just under 50%, are working with Lazard Inc. to gauge interest from potential buyers, said the people, who asked not to be identified because discussions are private. The business could fetch as much as €500 million ($521 million), they said.
Considerations are at an early stage and there’s no certainty they will lead to a transaction, the people said. Representatives for Mercedes and Lazard declined to comment. A spokesperson for BMW said FreeNow is doing well and exceeding its current targets, declining to comment on a potential sale.
A representative for FreeNow declined to comment on a possible deal, saying its shareholders are “fully confident” in the company’s strategy and positioning.
Daimler, as Mercedes was previously known, and BMW agreed in 2019 to pour more than €1 billion into their joint car-sharing and ride-hailing businesses to take on the likes of Uber Technologies Inc. and Lyft Inc. A year later, Uber considered a purchase of FreeNow, people with knowledge of the matter said at the time.
BMW and Mercedes then agreed in 2022 to sell part of the business called Share Now, their car-sharing operation, to Stellantis NV. FreeNow is available in more than 150 cities in Europe, brokering taxi and e-scooter rides as well as offering car-sharing and car-rental services, its website shows.
FreeNow would provide ride-hailing rivals an opportunity to enter or expand in key European cities including London, where customers can hail traditional black cabs with the app, as well as Frankfurt, Paris and Milan.
Big competitors in Europe include Uber as well as Estonian mobility firm Bolt Technology OU, which is exploring an initial public offering as it expands abroad. Lyft, on the other hand, is focused on the North American market. FreeNow also previously attracted interest from South Korean taxi app operator Kakao Mobility.
Carmakers are refocusing on core manufacturing and related technology amid the challenging transition to electric vehicles. As a result, they are retreating from non-core operations. Mercedes itself is exploring a potential sale of its Athlon car-leasing business, Bloomberg News reported in January. General Motors Co. is selling its stake in an EV battery plant in Michigan to its South Korean partner LG Energy Solution.