Stellantis exits car-sharing, sells Free2move brand

Stellantis, the multinational automotive group behind brands like Fiat, Peugeot, and Jeep, has concluded its four-year foray into car-sharing. The company announced the sale of its Free2move brand to German financial investor Mutares, marking an end to its adventure in the mobility service sector.

Free2move, which includes the operations of Share Now, a service Stellantis acquired in 2022 from BMW and Mercedes, will continue under Mutares' ownership. The business manages around 10,000 vehicles across 14 cities in Europe and the United States. However, the car-sharing market has proven challenging, with no clear winners emerging in terms of profitability. This lack of profit has led to previous major automotive players exiting the space.

BMW and Mercedes-Benz, who previously operated car-sharing services Drive Now and Car2Go respectively, merged their unprofitable ventures into Share Now in 2019. This merger was seen as a last attempt to salvage the business model. At the time, then-Daimler CEO Dieter Zetsche stated a commitment to urban mobility, aiming to compete with ride-sharing platforms like Uber and avoid being relegated to mere suppliers. Despite plans to invest heavily, the companies began scaling back operations, withdrawing from cities that did not offer sufficient support, particularly regarding parking fees.

The financial losses incurred by BMW and Mercedes in this venture remain undisclosed. Stellantis' sale of Free2move to Mutares, reportedly for €200-300 million, is likely a fraction of the initial investment. Mutares, known for revitalizing struggling companies, is expected to have acquired the business at a favorable price, with the exact terms kept confidential. The future strategic direction for Free2move under Mutares remains to be fully detailed. Volkswagen also considered entering the market but ultimately decided against it, observing the difficulties faced by pioneers like Daimler's Car2Go.

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As pioneers of automotive engineering, we will not leave the field to others when it comes to the urban mobility of the future.