Strategy Analytics Press Releases


BMW’s ReachNow Provides Compelling Ride-Hailing Service, finds Strategy Analytics

by Derek Viita | Aug 21, 2017


Ride-Hailing Services Better Positioned than Car Sharing to Cater to Wider Variety of Transport Use Cases

Boston, MA – August 21, 2017 – Many automakers’ first forays into the “new mobility” space have taken the form of short-term car-sharing services. But BMW is currently beta-testing a premium ride-hailing service, which provides an intriguing but not-yet-perfect way for automakers to expand into mobility services, as described in a new report from the In-vehicle UX (IVX) group at Strategy Analytics “User Experience Evaluation: ReachNow Ride from BMW”.

Click here for report: https://www.strategyanalytics.com/access-services/automotive/in-vehicle-ux/reports/report-detail/user-experience-evaluation-reachnow-ride-from-bmw#.WZV92D6GOM8

Key report findings include:

  • The ride-hailing process for ReachNow Ride from BMW is similar, if not identical, to more widely-used ride-hailing apps such as Uber and Lyft.
  • Time and price estimates are provided, but limited pick-up and drop-off zones lead to confusion and errors. In addition, cost estimates are not accurate although not too distant from the actual cost
  • The in-vehicle experience is standardized, though riders can customize their experience in key ways. For example, users can select a desired radio station, temperature, and driver engagement request, prior to pick-up.

Derek Viita, report author and senior analyst commented, “Providing a companion ride-hailing service with a car-sharing service opens up many new transport use cases for OEMs entering the new mobility space. But cost to the user will remain a crucial factor. Ultimately, the end-to-end user experience of any transport mode needs to be compelling, and the cost needs to be appropriate for the use case.”

Added Chris Schreiner, Director, Syndicated Research UXIP, “The transport modality needs to be available whenever it is needed, simple to use, and convenient for the use case. The time required to use it for an individual journey must be reasonable in addition to being comfortable and safe. But without a focus on UX, car-sharing services will always lag behind ride-hailing/sharing services, which are better positioned to cater to a wider variety of transport use cases.”
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