Per Reuters, BMW AGBAMXF is expanding the presence of its car-sharing service DriveNow in five new boroughs of London. With the latest additions, the company will now offer services to nine boroughs along with a widened total fleet of 720 BMW and Mini cars. The newly added expansions are in Westminster, Barnet, Tower Hamlets, Southwark and Brent.
Further, this German automaker had to reach agreements with separate local authorities in order to add five boroughs under its operations. Per management, the expansion in new boroughs is in sync with DriveNow's vision. It also emphasizes the company's optimism regarding London's potential.
Formed through a joint venture in 2011, DriveNow is currently a wholly owned subsidiary of BMW. With over one million users, it offers car-sharing service through a fleet of 6,000 vehicles. In London, BMW's DriveNow service was launched in 2014. Apart from London, this car-sharing service is offered by the company in many European cities, consisting Vienna, Copenhagen, Brussels, Milan, Helsinki and Lisbon.
However, BMW is not the first company to offer such services in London. In 2012, Daimler AG DDAIF launched its car2go business in the city. Nonetheless, it became difficult to coordinate with separate authorities across different boroughs and encourage customers to opt for car sharing services within the city. This forced Daimler to withdraw its car-sharing service car2go from London in 2014.
Apart from BMW and Daimler, a few other stocks in the auto space are PACCAR Inc. PCAR and Fox Factory Holding Corporation FOXF . The long-term growth rate of PACCAR and Fox Factory are 10.4% and 16.8%, respectively.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportFox Factory Holding Corp. (FOXF): Free Stock Analysis ReportPACCAR Inc. (PCAR): Free Stock Analysis ReportDaimler AG (DDAIF): Free Stock Analysis ReportBayerische Motoren Werke AG (BAMXF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research