Lead the coming global mobility business (..part 2)

Assets management and revenue streams

I addressed in my previous post some of the relevant key topics to lead future mobility business cases. I move forward now to analyse which are the assets and the revenue streams of this new business model

Managing fleet of autonomous vehicles offers the unique opportunity to use a series of assets to increase the value of the business and develop multiple collateral business cases linked with the operations.

Each asset can be owned/acquired/leased/ to run the business case and create more revenues streams

Real estate.

AREXPO_BIRD EYE VIEW DAY_3
Area Expo MasterPlan – Courtesy CRA 

Storage and parking. Having access to storage hubs and parking infrastructures will be a key factors when we’ll have thousands of vehicles running.

Garages for car services. Traditional car dealers and services will shift their core business from privates or direct customers to fleet and an efficient and fast organisation will optimise the operations

Charging hubs (Renewable powered, smart grid, vehicle2grid applications). Grid balance in cities will be an issue and those players with direct access to infrastructures will be facilitated. Energy will be the new “oil” and its availability can be improved thanks to renewable power.

Big data

autonoAmong world top ten brands as per capitalisation (Amazon, Apple, Google,) and  in mobility also (Uber) there are companies owning huge amount of data. Big data will be a mainstream revenue stream for those able to monetise and create value from that. Transport and mobility provide a relevant amount, coming from the following areas:

  • Mobility patterns (Matrix o/d)
  • Mapping data (for autonomous driving software applications)
  • Driving data (travel behaviour, drivers behaviour in different environment, incentives for drivers, privacy policies)
  • Fleet data/Insurance
  • Artificial intelligence for mobility and user experience

Fleet

MOIA_Vehicle_Exterieur_02
MOIA ridesharing bus

Cars are not only the main asset for running the operations as there are multiple  options to get value from the vehicle:

  • Financial asset. Financing the fleet allows to have interest gain
  • Second life Battery pack strategies (link to storage business model). The batteries of the vehicles can shift into a second life plan to re-market them at the end of the first lifecycle for storage and other utilisations.
  • Marketing. On purpose vehicles are a branding tool (as Moia just proved with their launch few days ago)
  • Commercial (promotion and re-marketing). Vehicles can generate more revenue once we move them into the re-marketing plan and second sales.

Entertainment

rinspeed-xchange-concept-passengers-and-rear-entertainment-system
Rinspeed Xchange concept

What shall we do during our trips in autonomous cars? Many operators are raising this questions and pay per use services (entertainment/business) to be developed for self driving cars seems to be a collateral area of interest. Whether we use our subscriptions (Netflix, Spotify and similar), I bet many services will be integrated directly in the cars.

If those are some of the assets to be leveraged in future mobility business, there is an complementary strategy to address which seems to be the big umbrella where including the whole stack of innovation: MAAS: mobility as a service. Once the volume of ridesharing trips will really shift our cities mobility patterns we have to expect that large corporations will aggregate vertical players to create the biggest

shared-mobility-simulations-auckland
ITF Forum ride sharing simulation study

platform to really go from A to B with one touch. Many are competing already around the world and capitalisations will drive the winning ones.

East regions (China, Malaysia, India) faces deregulated market where new mobility services (ride sharing/ride hailing) have established brands like  DIDI (China) Grab (Malaysia) Careem (Middle east) OLA (india). Many of them have international growth plans or even to extend operations (Didi just announced 151M$ investment to enter the car sharing market).

West regions (USA/Canada). is the cradle of new mobility and player are competing at the forefront of innovation thanks to most famous brands Uber/Lyft, Waymo/Apple.

Europe:  is an highly regulated market and new mobility struggles to become real in terms of volumes. Further than direct business development a potential strategy to fast the process in the early stage is to link with public transport operators or car manufacturers that are familiar with regulations and they are entering in the mobility arena. Business development is  subject to local/national Government approval even if EU policies are expected within few years time to create the legal framework.

So there’s a lot to do and we can be sure that mobility, public transport industry and automotive will converge in a whole new competitive arena that we don’t know the boundaries yet.

 

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“Italian cities to ban cars* by 2030”

This provocative statement opens Citytech, the event gathering this week in Milan more than 800 international experts, key players and top brands showcasing some of the most relevant innovations in mobility aiming to shape tomorrow’s cities. It’s time to act and take strong decisions to lead the transition towards a more sustainable mobility system and urban environment.

citytech_logoPublic policies made a strong acceleration in the last few weeks. UK and France declared to ban ICE (petrol and diesel) cars from new sales by 2040, Norway, counting 40% new registrations in August as electric cars, sets this goal in 2024 as Netherlands did. Most of all China has declared to be working on the same regulation, just defining the right timeframe. (we remind that China equals to 28 millions units market). That’s a long way if we consider that we have 695.000 EV globally in 2016 in 84 million cars market.

If Government sets regulations, industry’s role targets technologies and manufacturing accordingly. After Volvo recently announced to produce only electric or hybrid cars in 2019, JLR just followed with a target date of 2020 and media are full jaguar_ipaceof releases from IAA show in Frankfurt from BMW, Daimler and VW on huge investments to electrified the whole production in the near future.

We finally know that revolution today.. needs money more than arms, so what’s the opinion from financial community about E-mobility? JpMorgan just declared that electric technology will disrupt the market with many losers, all those ones that will not drive the change. (CNBC credit video) They forecast 35% market share for EV in 2025, scaling to 48% by 2030. More conservative position from MorganStanley’s comparing multiple scenarios expects 16% penetration for EV (fully electric) in 2030 that can reach up to 60% by 2040. morganstanleyMeantime Dutch bank ING identifies the battery costs reduction and public incentives as the main opportunities to drive production fully electric in 2035.

Market is full of researches we don’t want to get lost in, the fundamental is that globalBMWIvision political, economic and financial community has complete knowledge about this changing. Now it’s up to management class (from politics, to industries and consumers, nationally and locally) to decide whether they want to lead the changes or get disrupted. Italy is far behind this trend as proven by the insignificant market share of Ev (0,03%) or the absence of commitment and specific policies, any autonomous driving initiative elsewhere in the country even if there are existing competences and technologies not only linked to the “old” motor industry. We don’t need discussions but facts, projects, trials, and investments. That will bring the country industry back to a primary role in the future of automotive…(oh no sorry I’am wrong, …in the future  of mobility).

*..combustion cars

Carlo Iacovini                                                                                                                 Marketing Director, Local Motors,                                                                                   Board Member, Clickutility on Earth

Car2go Black, the new “app” intra cities car sharing by Daimler

source_kfz-gutachter-berlin.eu
source_kfz-gutachter-berlin.eu

After the great success of Car2go around the world and in particular the recent best ever launch in Italy, Daimler is not sitting down and is preparing a step further to innovate the mobility market. The company will soon be offering carsharing with relevant innovation. 1) It will use Class B vehicles, first time for official Daimler Brand into car sharing business. 2)One way trips and the possibility to end the rental in a different cities (but in Car2go black reserved parking spaces) 3) Smart phone based model without any card to increase flexibility. Continue reading “Car2go Black, the new “app” intra cities car sharing by Daimler”