The “ultimate driving machine” wants to redefine premium performance—and not just for torque, but for processor speed.
When BMW recently announced the launch of its new electric sub-brand, the i-series, it also introduced another creation: a $100 million venture capital fund, iVentures, designed to invest in new mobile services for both on and off the road.
Its first—and so far only—move has been to take a stake in My City Way, an app launched
at the end of 2009 that provides users with information on parking availability, local dining and entertainment and public transit information in over 50 cities in the U.S., Canada, Europe and Asia.
Sonpreet Bhatia, one of the three founders of My City Way, says BMW is one of four backers—which include the New York City Economic Development Corp.—that have raised $5 million for the company’s app. (She declined to reveal how much BMW invested.) She said the automaker has not influenced the development of My City Way to date, but that going forward it “will give us as much support in expertise as we ask.”
For a company previously reluctant to distract drivers with even the addition of cup holders, BMW’s new pursuit of mobile partnerships underscores a fast-growing trend of cars as mobile communications platforms. Last week at the Geneva Auto Show, for instance, Rinspeed unveiled a concept car that reads e-mails, Facebook and Twitter updates to drivers who attach their smartphones or iPads to a charger in the electric-powered vehicle before they set off.
Munich-based BMW’s commitment to new mobile applications is significant. German automakers have long maintained a focus on the driving experience itself, no doubt reflecting the serious mind-set of those hurtling along the no speed-limit Autobahnen. The automaker’s change of heart recognizes the increasing ubiquity of mobile communication in the lives of consumers, particularly younger ones, and the new market opportunities inherent in that change.
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