All posts by ScottHuntington

Editorial

BMW vs. Uber: Who Will Be the Next Amazon of Transportation?

Uber has disrupted the transportation industry, but it may not dominate the roads of tomorrow thanks to BMW’s recent innovations.

Dara Khosrowshahi, Uber CEO, announced plans for Uber to become the “Amazon of transportation,” but BMW may interrupt these plans with their own services and vehicles. As Uber becomes more than a carpooling app, the German automakers are becoming more than a manufacturer.

BMW announced a slew of projects to compete with Uber in 2019, and since then, both companies have been significant signs of progress.

But who is in the lead, and why does it matter for BMW?

Doing It All

What does being the Amazon of transportation mean? It means being a service that does it all, from ferrying people around to delivering food to making the vehicles of the future. It’s a bid to get into every aspect of transportation.

Though it began as a ride-sharing app, Uber now offers a variety of services like Uber Eats, a food delivery system, and Uber Freight, an app that matches carriers and shippers.

BMW has announced competitive offerings with the help of auto company Daimler. The joint venture includes things like Reach Now, a mobility solution that provides ride shares, bike rentals and public transportation planning.

BMW and Daimler’s transportation services compete directly with Uber, who’s also been incorporating more than just cars into their offerings. While the details of their approaches may differ, both companies are looking to provide a variety of transportation solutions to customers.

The Race for Driverless Transportation

BMW and Uber are looking into more than just connecting drivers with passengers. Both are joining the race to put safe, efficient driverless cars on the road.

Uber’s shaky acquisition of self-driving vehicle company Otto shows they’re serious about pursuing driverless technology. But they’re not alone. BMW hopes to release its self-driving electric car, the iNext, in 2021. 

At the Consumer Electronics Show (CES) this year, BMW also showed off a concept for a driverless vehicle interior, focusing on maximizing passenger comfort. In line with this philosophy of relaxation, they also premiered the i3 Urban Suite, a modified BMW i3 that allows passengers to lounge in a hotel-like experience. The Urban Suite needs a human driver for now, but the cabin arrangement could easily apply to a driverless car as well.

Uber has begun testing driverless vehicles in Washington, D.C. earlier this year. For now, they will be in manual mode, driven by a person. But they hope the data collected by these tests will bring them closer to operational self-driving vehicles.

Who’s Ahead?

Both Uber and BMW are running towards big goals in the future of transportation. The companies are not just pursuing a more varied array of services, but more advanced technology as well. The determining factor in who emerges as the new king of the road may be whoever can make these technologies a practical reality first.

Uber is quite literally reaching for the skies, as it unveiled a concept for a flying taxi at CES 2020. Working prototypes won’t be ready until 2023, and after that, it’s unsure when they will be available to the general public.

BMW’s focus remains on the ground, with much of their CES concepts aiming to provide passengers with a more enjoyable ride, with or without a human driver.

Features like their smart windshield will require a 5G connection, but this isn’t a far-off reality. BMW’s iNext, set to release next year, will support 5G connectivity.

Both companies’ concepts are lofty, and both seem to be making strides in achieving them. But BMW looks closer to bringing their new technology to the road, with the iNext coming out soon while Uber has yet to announce a release date for its self-driving cars.

As for their current transportation solutions, BMW’s Reach Now already has more than 6 million users, so they may soon catch up with Uber in the ride-sharing field.

If Uber doesn’t show significant progress in the coming years, BMW might beat them to their goal of being the Amazon of transportation.

Information

Introducing the Vision DC Roadster

It feels like everyone and their brother is working toward the goal of creating a sustainable and affordable electric car, but thus far, they’ve all been limited to four-wheeled cars and trucks, until recently.

In 2019, BMW debuted its first electric motorcycle, the first of its kind. What set’s BMW’s Vision DC Roadster apart, and when can we expect to see more motorcycle companies following BMW’s lead?

The BMW Electric Bike

BMW’s first electric bike looks like the brand’s old school bikes with their boxer engines, but instead of a gasoline engine, there’s a vertically-installed battery where the engine would otherwise be. The battery pack is flanked by cooling ribs — a throwback to the boxer engine’s cooling fins that were developed way back in 1923.

The Vision DC Roadster looks amazing and we can’t wait to get our hands on one to take it for a road test. It looks like the perfect addition to the BMW lineup but you probably won’t be seeing it on the road for a while.

Image via BMW PressClub

Instead, Electric Scooters

If you can’t wait for a two-wheeled electric commuting tool that’s got the BMW brand name attached, you do still have some options. The brand currently offers the C Evolution, a fully electric scooter with a range of 99 miles per charge. If you don’t need to make long trips, this scooter can be a fantastic tool. 

It’s lightweight, with a diecast aluminum case that houses and protects the 12 li-ion battery cells that power the C Evolution. These are actually the same batteries used in the brand’s i3 electric car. It’s been an option for BMW fans overseas for quite a few years, but it didn’t make its way to the states until the 2018 model year.

Waiting Until 2025

Although BMW released its plans for Vision DC Roadster in 2019, we probably won’t see one at our local BMW dealership until 2025 at the earliest. BMW isn’t rushing to get this electric motorcycle out on the road.

This is partially because motorcyclists aren’t generally looking to switch to an electric model, as fuel costs for motorcycles aren’t really an issue. There’s also the problem of range. Even fully electric vehicles, with their large battery packs, have a limited range of less than 200 miles — and there’s no room for those massive batteries on a motorcycle. When you combine these two things, BMW knows that they have to improve their technology before they release the Vision or it will end up flopping.

Looking Forward

For BMW fans, the promise of an electric motorcycle in the near future might be an exciting one — or it might turn out to be a pointless waste of resources that no one really wants to buy. The brand is biding their time and being smart about this new foray into otherwise unknown territory. It will be interesting to see where this story goes between now and 2025.

Information

Should You Buy or Lease Your New BMW?

Whether you’re a veteran BMW owner or about to add your first one to your collection, there’s always one question that comes up when you head to the dealership — should you buy or lease your new BMW? Let’s take a look at the pros and cons of both purchasing options so you can make the best decision for you. 

Pros — Buying

If you’re a fan of modifying your daily driver, buying your car means that you can do just that without violating your lease agreement. You can also drive it as much as you like with no mileage restriction. Purchasing instead of leasing — especially with luxury brands like BMW — also gives you the option to acquire equity the longer you own it, which you may be able to borrow against. 

If you have the money or credit to purchase your BMW outright, buying can be a great choice. Plus, it can save you money on insurance, which offers benefits like roadside assistance and auto medical coverage. If you own your BMW for more than three years, your insurance costs tend to drop. 

Cons — Buying

Permanent ownership isn’t for everyone. If you don’t buy your car outright, you’re looking at an extended loan period. Most leases last for 36 months or three years, while purchasing loans often extend 60 months with varying interest rates. These factors mean you could end up paying quite a bit more than what the car is worth. 

It’s also more difficult to upgrade your vehicle to the newest model, so if you absolutely need to have the latest toys in your garage, buying isn’t the best decision. 

Pros — Leasing

Leasing is another option for getting your hands on a new BMW, and it has its own benefits. If you like to upgrade your car every couple of years, leasing gives you that opportunity — you can trade your current ride and switch to a new model at the end of your lease period. The BMW warranty will protect you if something goes wrong or needs maintenance. Most BMW warranties cover all necessary repairs for three years. 

If you’re not planning on keeping a BMW permanently, leasing gives you flexible possibilities for ownership. Without loan interest, you’ll pay less in the long run. 

Cons — Leasing

If you lease, you have limits on what you can do with your vehicle. You can’t make any modifications without violating your agreement, and you’re only allowed to drive a certain number of miles every year. You also need to have excellent credit to qualify. There are often a lot of fees associated with leasing, and if you run into financial hardship, it’s difficult to cancel without a negative strike on your credit. 

Making the Right Choice

Both buying and leasing have their positives and negatives. The right choice for you will depend on numerous variables, from how far you need to drive to what your income looks like. You’ll also need to consider whether you’re looking for a long-term investment or something shorter. Talk to your BMW dealer to see which selection is best for you.