Uber Technologies Inc UBER is reportedly considering strategic maneuvers to expand its market share in Europe.
The San Francisco-based company is in discussions to purchase German ride-sharing app Free Now, according to Bloomberg.
Formerly known as MyTaxi, Free Now is a product of Your Now, a joint venture between BMW Group BAMXF and Daimler AG DDAIF. The Your Now franchise comprises of urban mobility services like ride-hailing, car-sharing, car park facilities, charging infrastructure, and in-city traveling and route planning.
What Happened: Even though Uber has expressed interest in Free Now, there is no certainty that a transaction would follow, according to Bloomberg.
If the talks do proceed, Uber would be able to expand its outreach to other European markets as Free Now has integrated local ride-sharing apps in France, Greece, and Romania.
The valuation of Daimler’s equity stake in the Your Now venture was close to $720 million in June, Bloomberg noted.
Why Does It Matter: Uber has long shown interest in having at least minority stakes in ride-hailing competitors across the globe, including China, Southeast Asia, Russia, and the Middle East.
Uber held 15.4% in Chinese mobile transportation company – Didi Chuxing, as of last year — acquired after it scaled back its own operations.
In 2018, Uber negotiated a 27.5% stake in Southeast Asian ride-sharing startup Grab, after it similarly pulled back its operations in the region.
In March last year, it signed a purchase agreement with the Middle East rival Careem for $3.1 billion.
In June, Bloomberg reported that the Russian tech company Yandex could be planning to buy out Uber’s stake in their ride-sharing venture Yandex.Taxi.
Price Action: Uber stock closed 3.19% higher at $35.56.
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