BMW Launches New Mobility Service in Seattle

BMW AG is launching a new program in Seattle that combines elements of car- and ride-sharing services with new features.

The carmaker, which announced the program on Friday in Washington, D.C., plans to expand to three more cities in the U.S. later this year. It eventually aims to operate the service in 10 North American markets.

Dubbed ReachNow, the new service replaces BMW’s previous DriveNow car-sharing program that was discontinued in the U.S. last year after an unsuccessful three-year run in San Francisco. BMW still operates the DriveNow program in select European cities.

Initial ReachNow users in Seattle will be able to access 370 cars—including a mix of 3 Series compact sedans, i3 electric city cars and Mini Cooper hatchbacks—which can be parked in any legal street parking space, including metered spaces and residential zones.

DriveNow’s failure in San Francisco is blamed partly on not being able to secure free parking arrangements with the city. On average, car-sharing vehicles occupied less than 5% of available parking spaces in Seattle’s business districts, and those vehicles often sat idle for less than an hour, according to city officials.

It will cost $39 to join ReachNow, although the fee is being waived for the first wave of people to sign up. Rental rates are 49 cents per minute while driving and 30 cents per minute when parked. For longer usage, customers pay a flat rate of $50 for three hours, $80 for 12 hours and $110 for a full day. Reservations can be made via iOS and Android smartphone apps.

By comparison, Daimler’s Car2Go car-sharing program costs $35 to join and charges a flat rate of 41 cents per minute to rent a vehicle. Car2Go’s Seattle fleet includes 750 vehicles, the maximum allowed by the city for any operator.

Later this year ReachNow also will offer ride-hailing services similar to Uber and Lyft. BMW says it will use a strict screening process to help alleviate safety concerns in the wake of a case in Michigan earlier this year in which a Uber driver was charged with murdering six people.

Additional services planned for ReachNow include:

• Vehicle deliveries to pre-set locations
• Availability at Seattle’s SeaTac airport
• Car sharing programs for residential and corporate groups

Mini owners also will be allowed to rent out their personal vehicles to ReachNow users.