Mircomobility can be a different story from sharing

Car sharing: pioneer business.

Nearly 20 years ago we were few dozens of people (entrepreneurs, managers, engineers and environmental advocates) around Europe keen to the idea of sharing cars. Early stage projects, often public funded, came live trying to demonstrate that sharing mobility was the right choice to fight congestions, pollution in the cities. Opponents (car industry-first) had an easy time to even make fun of car sharing because the car ownership culture was so strong that nobody would have bet on sharing mobility success. Furthermore, car sharing was not regulated and public authorities struggled to define a public or private service. Fortunately, not many lobbies could fight since the numbers were very low. But business rules sometimes are unexpected and when big players started heavily investing in the service since it was a captive market.. it magically became trendy and blew up with still ongoing growth. Europe drove this growth and expanded in the US and Asia (leading one now).

The ride-hailing revolution.

Ten years later we saw an opposite trend, based on ride-hailing services. Thanks to big cheques and VC willing to address the mobility market we saw the incredible growth of the on-demand ride-hailing business (from Uber on). US market was quite low regulated and after setting a general regulatory framework to recognize the TNC (Transport Network Company) the business boomed. Unfortunately, the reverse trip didn’t work in Europe. where opponents this time where much more seasoned and conservatives. taxi drivers lobby from one side and public transport operators on the other side. Both lobbies were very closed to national and local governments.. and they succeed in limiting (or banning) ride-hailing services in many cities or country.

Micromobility: the last missing point

Now the new trend is getting live.. micro-mobility, based on kick scooters or scooter sharing. Again we face similar situations to the past but regulators and operators are more ready to manage operations and services. We don’t have lobbies to fight against to.. (maybe the “pedestrians lobby could be the most interested one.. but they are not officially organized 😄) and the services boomed in the US first but nearly at the same time in Europe. However, cities opened their roads and sidewalks (and cycling lanes and pedestrian zones) to kickscooters we can say that the main factors that can destroy or heavily limit the business in Europe are safety and public order. kickscooter provides an unbeatable feeling of freedom to move everywhere (from home to metro to your car).. but freedom can get too much closer to anarchy in this case. So we see cities

credits: https://mtltimes.ca/

shutting down services, (Paris), banning operators until the local regulatory framework is all set (Milan), while studies declare numbers supporting how kick scooters are polluting and dangerous.

We don’t have fighters this time.. kickscooters sharing don’t steel job to any existing category but Governments (especially in Europe) are very keen to control and regulate mobility in every detail, therefore, a harmonized policy framework is highly recommended to gather operators and policymakers to a common standard and business case. We can learn from the past 20 years how to introduce and steer a mobility “revolution” in the right way, this time.

 

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.