2019 – a great year for the automotive and transport industries!

HighMobility price screenThe automotive and transportation industries are both significant contributors to our urban and planet challenges. I have been focusing on these two industries for some years since I believe both can change relatively quickly thus become major contributors to our ability to meet the sustainability goals and stop ruin our planet. And even better, they can drive rapid change themselves without being forced by legislators which opens a classic opportunity for innovative players to gain massive brand equity. And this time it’s for a good cause and not just by adding features, design and marketing dollars.

This is a technology opportunity that is fundamentally IoT and data driven. IoT is used to connect vehicles, their users and owners, infrastructure like road signs, roads and parking space to the internet. Relevant data are collected from these devices and combined with data from other sources like car registries, weather data and road data bases. The data are carefully and responsibly made available through different standardised APIs to ecosystems with service providers like insurance, car pools, public transportation, parking, scooter services and taxi. And different initiatives, typically a city or an enterprise, chose an ecosystem for their efforts driving the shift from very inefficient use of personal vehicles to shared services with many times better utilisation of the resources. This is true both for transportation of people and goods.

The often used term for the ultimate solution is Mobility-as-a-Service or MaaS, which have been talked about for many years. But up until now we have rather seen more vehicles on the streets and roads than better utilisation of the ones we already have. Car sharing services have been rolled out fighting for the same few parking lots and adding up to the jam already in place. And in many cases they already have been shut down like Autolib in Paris and in Stockholm car2go and DriveNow. Connected bicycles and scooters have been added and in some cases also already been shut down or stopped by city authorities. An average car in a city around the world is used around 3-4% of the time which obviously is massive waste of space, money and the planet.

I believe 2019 will be a great year for the transportation and automotive industries! This will be the year when the car makers start share the real-life car data they collect with third-party developers in real-time. There are probably many reasons for why this happen now but I chose to be believe it is because they have concluded that is a great way to drive change in their industry and that innovative car makers following this trend will gain a lot of Brand Equity and commercial success. In order to develop services across brands and models a “neutral server” is needed to add a standardised layer on top of the proprietary car data. Some companies have come quite far with that already and my personal favourite is High Mobility who work closely with some of the German car makers. They already have som data from Daimler, BMW and Mini available and I believe these first movers will make the other follow quickly and due to the transparency which data is made available and pricing, will become harmonised rapidly. At Tantalum (acquired Springworks recently) where I work, we have been waiting for this to happen and are already working on how to turn the data released into true value for service providers and cities as well as the users and owners of the vehicles.

The second major thing that will happen in the mobility market 2019 is that we finally will see the first mobility ecosystems being launched. This will lead to more data-driven innovation in the mobility market but more importantly the first limited Mobility-as-a-Service offerings being launched. I am involved in discussions with cities who are eager to see MaaS services in their cities as well as enterprises who want to offer their employees MaaS services instead of combinations of company cars, rental cars, public transportation and taxi. In both cases they are going after commercial benefits and to position themselves as doers when it comes to the sustainability challenges and corporate responsibility. The first ones will typically solve the easier parts of a MaaS service like integration of public transportation and parking services but the real challenges are to integrate cars, busses and trucks in the services which is why we at Tantalum started there. An event to recognise is the recent joint Daimler and BMW announcement about combining several vehicle related services including myTaxi, car2go and DriveNow under one umbrella. But there are many other activities in this field and I hope all cities in the world start working seriously on this now. Every single success here will make us all winners!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: