Mobility as a Service: A Threat or Greatest Opportunity?

Transcription

1 Mobility as a Service: A Threat or Greatest Opportunity? John F. Possumato) President & CEO Automotive Mobile Solutions LLC Haddonfield, NJ john@possumato.com

2 The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker s company, product, or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service. 2

3 Learning Objectives Upon completion of this workshop, you will be able to: 1. Define Mobility as a Service and review the new role of Car Sharing and Ride Sharing in the transportation mix for today s consumer. Define Car Sharing and Ride Sharing Outline the current business model of Car Sharing Stationary (ZipCar), Free Floating (ReachNow) and Peer to Peer (Turo) Outline the current business model of Ride Sharing/Ride Hailing Uber, Lyft, Maven 2. Understand MaaS projected growth in revenue, market capitalization and new vehicle sales. Review the growth charts of industry expert predictions for MaaS in revenue, market capitalization and new vehicle sales 3. Understand the potential threat, and, alternately, be aware of the potential opportunities, in the current MaaS marketplace; recognize the strengths and weaknesses of current MaaS players, and their current and anticipated vehicle sales, service and fleet management needs. Positioning and business of new MaaS entrants Strengths of the new MaaS providers Weaknesses in current third party Car Sharing models and Ride Sharing models Current vehicle sales, service and fleet needs of Ride Sharing fleets Future anticipated MaaS fleet needs 4. Identify what is required to launch a direct, dealer based MaaS offering, including software platforms, insurance, fleet management, etc., and formulate a plan to get in the game profitably today, to increase vehicle sales and fixed operation revenue. Direct and indirect participation Manufacturer Initiatives and 3 rd Party brokers Providers to get in the game directly Car Sharing or Ride Sharing o Software platforms o Hardware vendors o Insurance needs o Training & Marketing Low Risk/High Reward Strategy to Enter in Stages o Dealer based Car Sharing for Ride Sharing vendors o Dealer based Car Sharing for retail o Direct dealer Ride Sharing Opportunities 3

4 Mobility as a Service 1. Define Mobility as a Service and review the new role of Car Sharing and Ride Sharing in the transportation mix for today s consumer. Define Car Sharing and Ride Sharing Outline the current business model of Car Sharing Stationary (ZipCar), Free Floating (ReachNow) and Peer to Peer (Turo) Outline the current business model of Ride Sharing/Ride Hailing Uber, Lyft, Maven 4

5 Car Sharing Station Based Peer to Peer Free Floating Ride Sharing/Ride Hailing 5

6 MaaS 2. Understand MaaS projected growth in revenue, market capitalization and new vehicle sales. Review the growth charts of industry expert predictions for MaaS in revenue, market capitalization and new vehicle sales 6 Source: Deloitte University Press, The future of mobility: What s Next? 2017 Issue 20

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8 3. Understand the potential threat, and, alternately, be aware of the potential opportunities, in the current MaaS marketplace; recognize the strengths and weaknesses of current MaaS players, and their current and anticipated vehicle sales, service and fleet management needs. Positioning and business of new MaaS entrants Strengths of the new MaaS providers Weaknesses in current third party Car Sharing models and Ride Sharing models Current vehicle sales, service and fleet needs of Ride Sharing fleets Future anticipated MaaS fleet needs Current MaaS Players Did a Great Job of Establishing the Market, Changing Regulations (Taxi s were a closed industry) and Conditioning the Consumer. But No Structural Cost Competitive Advantage No Customer or Driver Loyalty (all price driven) No Service or Maintenance Infrastructure No Walk-In Customer Base No Fixed Facility Network All Ride Sharing Companies Lose Money Dependent on Investor Cash Ride Sharing Industry Future May Depend On A) Only one player survives so prices can be raised or (Problem is that there are very low barriers to entry once prices are raised) B) Autonomous vehicles take out all driver costs (Someone still has to service, maintain and manage fleet) 8

9 Clear Opportunity Now to Service Ride Sharing Fleets - Largest Fleets in the USA, Yet Do Not Manage their Fleet Each is Just a Software Platform that Now Has Become A Commodity Critical Need for New Drivers & A Large Number of New Applicants do not Have Vehicles 9

10 4. Identify what is required to launch a direct, dealer based MaaS offering, including software platforms, insurance, fleet management, etc., and formulate a plan to get in the game profitably today, to increase vehicle sales and fixed operation revenue. Direct and indirect participation Manufacturer Initiatives and 3 rd Party brokers Providers to get in the game directly Car Sharing or Ride Sharing o Software platforms o Hardware vendors o Insurance needs o Training & Marketing Low Risk/High Reward Strategy to Enter in Stages o Dealer based Car Sharing for Ride Sharing vendors o Dealer based Car Sharing for retail o Direct dealer Ride Sharing Opportunities Manufacturer Programs Book by Cadillac PassPort by Porsche 10

11 Third Party Vendors FlexDrive by Cox Automotive & Holman Enterprises Flow Powered by Clutch Brokers (Probably remember Scott Painter?) 11

12 Providers to Get in the Game Directly Software Platforms Hardware Vendors Insurance Needs This a new area for most all of the providers but most are interested in pursuing MaaS areas. Must disclose, traditional policies are usually not applicable 12

13 Turn-Key All in One Providers 13

14 Strategic Approach to Entering MaaS (low risk/high potential return) Stage 1 Wholesale Car Sharing Temporary Vehicles to new or existing Ride Sharing (Lyft/Uber) Drivers Additional income from high profit department Additional vehicle sales conversions Additional fixed operations revenues Set-up for Stage 2 Stage 2 Retail Car Sharing Temporary Vehicles to Current Prospects & Customers Builds on foundation and experience in wholesale Car Sharing Additional income from high profit department Prospect & Customer retention (no need for 3 rd party providers) Additional fixed operation revenues Enhances, but not dependent upon, OEM/Vendor initiated programs Set-up for Stage 3 Stage 3 What the Future holds for MaaS Car Sharing & Ride Sharing with Autonomous Vehicles, OEM Programs, Operator Partnerships???? 14

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