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The automotive industry is changing before our eyes. Today, services based on the CASE model are coming soon. They are occupying an increasing market share and the total dollar value is increasing every year. What is the prospect of the automotive industry? How can automobile companies seize these opportunities?
New mobile services are emerging rapidly
By 2030, it is unlikely that more than 30% of the expected growth in automobile sales due to urbanization and macroeconomic growth will occur due to the expansion of shared mobility.
In China, EU and the United States, which support shared mobility solutions, the -year growth rate of the travel market may reach 28% from 2015 to 2030. Of course—this will be the most optimistic situation. FutureBridge experts predict that the shared mobility market will grow significantly at a CAGR of 16% in 2018, reaching $180 billion by by 2025. How to explain the growing demand for new mobile services?
On the one hand, the automotive industry responds to 's changing consumer preferences . A person travels by car shorter distances, but more frequently. And it doesn't have to drive at all, as new means of transportation become easier to get.
On the other hand, the soaring car price (although the car loses its value after a few months of purchase) prompted us to look for other cheaper alternatives that provide the best driving comfort anyway. How will enterprises that rely on traditional car ownership models deal with this trend? They will offer new services like alternative models, where you can own a new car with insurance, repairs, roadside assistance and more for just one monthly payment. Subscriptions will soon account for about 15% of new car sales, and by 2025, that should rise to 25%. In this case, new modes of travel in the form of rental and carpooling services have become important, which is also part of the road transformation.
The third thing is based on the CASE model (connection, autonomous driving, shared mobility, electrification) , which can develop new mobile services at an unprecedented scale. According to Microsoft experts, by 2030, almost all new cars will be connected to devices and act as data centers on the wheels.
6 Leading new mobile service
Car sharing
A short-term car rental model that allows users to choose vehicles and pick up and drop-off locations. Users can determine the vehicle and flexible rental time. Operators obtain high ROI with high utilization and minimal staffing.
Example: citybee, E-VAI, fetch
car call service
A form of taxi rental in which the driver is usually a contractor using a private vehicle rather than a direct employee. Users can use it immediately and process payments through the carrier. The advantage is also the ability to track and monitor the journey. Instead, for operators, traditional fleet costs must be borne by the driver. This is an easy-to-scaling service.
Example: Uber , Lyft, Bolt, marcel, OLA
P2P Sharing
This service allows car owners to rent their vehicles when they are not currently using. BMW-run ReachNow is piloting a version of this service that allows Mini owners to provide their currently unused vehicle rentals. The benefit to users is that it costs less than traditional car rentals. At the same time, operators do not need to manage fleets and have access to easily scalable business models.
Example: HoppyGo, SnappCar
Carpooling
allows users to join the scheduled itinerary. The operating company acts as an “intermediary” through which it can announce and join rides. Carpooling is suitable for those who travel alone and those who want to ride in order to reduce the total travel cost of a single passenger. This is a cheap and environmentally friendly service. More importantly, operators are more profitable each time they ride, and they do not need to manage fleets.
Example: BlaBlaCar, GoMore, liftshare
car rental
The evolution of traditional car rental allows users to rent cars at different times without the traditional hassle associated with such services. From the user's perspective, such a new service makes the vehicle rental process easier and faster. Additionally, the vehicle may be selected before finalizing the lease. In turn, operators have less staffing than traditional leasing and can take advantage of existing fleets.
Example: Audi Silvercar, Hertz, Sixt, PORSCHE DRIVE, UBEEQO
Multimodal transport
public transportation services and other modes of transportation (such as public transportation, railway networks and even taxis). The goal of such services is to get people to reach their destination from the starting point in the fastest, cheapest or most efficient way, depending on individual needs. In this model, operators can reach more potential users and have relatively low deployment costs due to the lack of physical assets .
Example: FREE2MOVE, whimsy, Google Maps
Which new mobile services are growing the fastest?
The most popular among the 55 new mobile service providers operating in European countries is (51%) in the car sharing field. The second most popular is car rental service (20%) , followed by P2P Share (13%) .
In terms of ownership, most of the new mobile services are OEM owned (over 36%), although many of them are independent (over 38%). OEM investment services are also included (31%).
Technology and Functions to Promote the Development of New Mobile Services
Mobile Services is based on advanced software, using at least the Internet of Things to transfer data from vehicles to the cloud. Personal information can then be obtained on the user's mobile application.
For services based on driverless car rental, modern safety features have been taken into account when opening and closing the car.
To minimize possible problems, developers of the digital new mobile service also introduced the fault reporting option.
Below is a detailed selection of the most common features and technologies for each new mobile service in Europe.
All these and other options provide guidance and specific behavior patterns for future development of OEM.
Key factors for developing new mobile services
CASE Trends provide new opportunities for future vehicles. However, the interrelationship between software, on-board sensors and electronic systems requires a lot of resources for , especially when we talk about reliable operations that translate into competitive advantages of new mobile services and popularity among potential users.
So if you want to develop in this area, you should at least consider these factors.
- Net Security . In addition to creating a lot of code, it is also important that your user data tracking process complies with standards and regulations that apply to your geographic area.
- listen carefully to user needs. To compete with technology startups, OEMs should focus on innovative digital solutions for real consumers expect from . When it comes to functional combinations, it is important to be flexible.
- Of course, Emotion is a factor that must be considered. Solution providers should care about providing a unique experience and feeling that makes users eager to reuse a specific service and spread it to their communities in the process.
- Flexibility and scalability . You need to be prepared not only to meet the ever-changing expectations of customers receiving feedback, but also to expand features to include features that competitors already have (or provide a completely innovative solution).
- is ready to expand the product range . For example, new vehicles: not only internal combustion engines, but also hybrid , electric; not only cars, but also city scooters, etc.
If you want to deal with the challenges posed by developing a new mobile service and consider the above and other growth factors, please contact Grape Up.We can help you expand your business to have the features and value that today’s conscious consumers appreciate.
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