BMW To Let Car Owns Rent Out Their Vehicles Like AirBnb

Even luxury bar brands like BMW are feeling the competition from Uber and Lyft. Ownership no longer means what it once did given the manufacturers' retention of vehicle software rights. So letting owners rent our their cars to others offers a way of slightly reducing the cost of owning an expensive machine and perhaps extending the market as prices rise while developed nation incomes stagnate.

BMW has already introduced this concept in Europe. It is testing the idea with its less expensive Mini brand in the US, but plans to expand to its full line. It certainly doesn't cost BMW much, if anything. JL

Elizabeth Behrmann reports in Bloomberg:

The rental feature is part of BMW’s push into so-called mobility services as ride-sharing operators like Uber Technologies Inc. provide consumers with alternatives to owning an auto. “There’ll be those who say, Never, ever will I lend my car to strangers.’ Then there’ll be others who’ll love the idea of halving their leasing rate.”

Rather than having a car sit for hours on the curb, BMW AG’s Mini brand plans to help its customers turn idle downtime into cash.
Mini plans soon to make its new cars available with devices that enable owners to rent out their vehicles, likeAirbnb Inc. does with spare rooms and empty apartments. The system includes features that accept payment and track the vehicle to make sure the renter doesn’t go for a one-way joyride.
“It’s going to be kind of like Airbnb on wheels,” Peter Schwarzenbauer, the BMW executive who oversees Mini, said in an interview at the Beijing motor show. “There’ll be those who say, Never, ever will I lend my car to strangers.’ Then there’ll be others who’ll love the idea of halving their leasing rate.”
If the test goes well, BMW plans to expand the service to its namesake luxury-car brand, Schwarzenbauer said, adding that the technology is easy to install and will be available at “no significant cost” to the owner.
The rental feature is part of BMW’s push into so-called mobility services as ride-sharing operators like Uber Technologies Inc. provide consumers with alternatives to owning an auto. BMW already runs car-sharing in cities in Europe, and it plans to add options like vehicle delivery and a taxi-like chauffeur service this year in a new shared fleet introduced this month in Seattle.
BMW plans training and certification for the chauffeur service to ensure the company offers a premium product, Schwarzenbauer said, adding that there’s been a promising response from people wanting to become drivers. The chauffeur operation will use fixed pricing rather than Uber’s dynamic method, where fares rise during times of high demand, he said. A rollout to about 10 U.S. cities is in the works.