Mercedes-Benz now offers long-term rentals

Guillaume Fritz, CEO at Mercedes-Benz Mobility Korea, speaks at a press event in southern Seoul on Tuesday to celebrate the launch of the car rental service. [MBMK]

Mercedes-Benz Mobility Korea (MBMK) launched a long-term rental service on Tuesday, offering a slightly different take on the car subscription services that have become increasingly popular among major automakers.

MBMK, established by Daimler Mobility AG in January, offers the rental service for Mercedes-Benz vehicles for one to five years with monthly prices ranging from several hundred thousand won to several million won depending on the model.

As an example, the monthly rental price for the C220d 4Matic Exclusive stands at 711,000 won ($638), while the price for the S350d 4Matic is 1.76 million won.

Unlike normal rental cars, users of MBMK’s new long-term rental service are not responsible for organizing their own car insurance. They are also not responsible for taxes, including acquisition tax and registration tax, because the car does not belong to them.

MBMK is the first branch of Mercedes-Benz Mobility in the world. Starting with the rental service, the company plans to offer a range of new mobility products and services.

The launch is part of Daimler Mobility AG’s effort to boost its presence in the mobility service market, an area of the automobile industry that is rapidly changing, according to Yvonne Rosslenbroich, a member of the board of management for the Africa and Asia Pacific region at Daimler Mobility AG.

As part of this push, in July Daimler Financial Services AG changed its name to Daimler Mobility AG.

“Daimler Mobility AG is positioned for the future with its three core activities of financial services, fleet management and digital mobility solutions,” said Rosslenbroich at a press event held in Sinsa-dong, southern Seoul, on Tuesday. “With Mercedes-Benz Mobility Korea, we will contribute to the overall strategy of Daimler Mobility.”

“For us, the definition of mobility is to move our customers simply and easily from one place to another, from years to minutes, in a Mercedes-Benz vehicle,” said Guillaume Fritz, CEO of MBMK. “Under our purpose ‘we move you,’ for mobility at your fingertips, we now offer premium long-term rental services designed to offer an easy, convenient and digital experience to access the full range of Mercedes-Benz vehicles for one to five years.”

The entire rental process has been digitized, according to the company.

Fritz explained that Korea is a “dynamic” market where customer demands change rapidly.

“There are many things we can do [in Korea]. That’s why we chose Korea as the first market dedicated to mobility,” Fritz said, adding that the company discovered the demand for long-term rental services in Korea through dealerships.

MBMK was set up with the long-term vision of seeing what Seoul could look like in 2039. By then, the mobility industry in Seoul will be “futuristic, but not far from unrealistic,” according to Fritz.

Daimler may also launch its mobility service NOW, jointly launched by Daimler and BMW in Germany in February, in Korea.

The service helps users find taxis or alternative transport solutions. For it to raise profitability, it needs to branch out overseas, and Korea could be a potential market if there is demand, according to Rosslenbroich.

BY JIN MIN-JI [jin.minji@joongang.co.kr]