Volkswagen Group is promoting its WeShare car-sharing enterprise to German startup Miles Mobility because the automaker retreats from what has largely been an unprofitable trade.

Miles will combine WeShare’s 2,000 VW-branded electrical autos into its principally combustion-engine fleet of 9,000 vehicles, the businesses stated Tuesday.

Miles additionally ordered 10,000 EVs from the producer, with deliveries as a consequence of start subsequent 12 months.

Automakers together with Mercedes-Benz and BMW have struggled to show their car-sharing ventures into viable profit-makers.

Whereas VW sees about 20 % of income coming from subscription companies and different short-term mobility choices by 2030, the WeShare enterprise that’s working in Germany has didn’t take off.

VW’s resolution to dump WeShare grew out of the belief that it will not have the ability to enhance profitability past 2022, VW Monetary Companies CEO Christian Dahlheim stated on a name with reporters.

Berlin-based Miles is without doubt one of the few exceptions within the trade. The startup, which is lively in eight German cities and earlier this 12 months expanded to Belgium, in 2021 broke even on gross sales of 47 million euros ($47 million).

VW’s partnership with Miles will not be unique and the automaker is in a position provide its autos to different car-sharing platforms, Dahlheim stated.

Each firms agreed to not disclose how a lot Miles paid for the enterprise.