Future of Integrated Mega Trends & New Business Models Shaping Urban Demand; How Brands Are Competing To Supply Integrated Services Graeme Banister, Consulting Director, A&T UITP Combined Workshop, Hannover, 20/10/14
Converging Mega Trends and their Impact on Solutions New technology, coupled with changing demographics & social preferences are the foundations from which a more integrated approach to mobility is being created particularly in urban areas Urbanisation and Smart Cities New Business Models (Sharing Economy) Infrastructure Spending Integrated Transport Solutions Connectivity Generation Y 2
Landscape Many Players, New Partnerships, New Models In both B2C and B2B environments customers are demanding intuitive services; many actors investing significantly in order to deliver the killer seamless proposition & user experience. Taxi Services OEMs Bike Sharing Car Rental Companies Leasing Companies Micro-mobility Car Sharing Corporate Car-Sharing Integrated Solution Providers Integrators Travel Management Companies Car Rental Ridesharing Parking Public Transport Operators Fleet Management Providers Software Platform Providers E- Public Transport Integrated Ecosystem Partnership 3
Integrated Definition Technology enabled, any device delivery of real-time, door-to-door, multi-modal travel encompassing pre-trip, in-trip and post-trip services bringing Convenience, Time & Cost Savings to the User CAR SHARING & POOLING CAR RENTAL & LEASING DEMAND RESPONSIVE TRANSPORT (TAXI, BRT) DYNAMIC PARKING INTERCITY PUBLIC TRANSPORT INTRACITY PUBLIC TRANSPORT CAR RENTAL CONNECTED LIVING (including car) TRAIN/FLIGHT INTEGRATION PHYD INSURANCE ENERGY MANAGEMENT MICRO-MOBILITY SOLUTIONS APPS, JOURNEY PLANNING, BIG DATA CONCIERGE SERVICES Source: Urban Science 4
Connectivity + Gen Y = Integrated On-demand is part of Gen Y s DNA; real-time is essential and brands play key role in decision-making Source: Urban Science 5
Gen why buy Growth in New Services Over 17M registered users of ride sharing schemes across Europe which is set to double by 2020 25% of 18-25 year olds in France are members of BLA BLA CAR Public Transport Higher Price per KM Taxi Services Planned Long Distance Instant Short Distance Transportation Network Companies Fixed Carpooling Lower Price per KM On Demand Carpooling Source: Frost & Sullivan. 6
Services Investment Fuelling Further Disruption Products developed in the B2C space are sufficiently stable to migrate to the B2B space this advancement is bringing in new players, new brands and new investment (parent and / or VC funding) Public Transport Higher Price per KM Taxi Services Planned Long Distance Instant Short Distance Corporate Carpooling Transportation Network Companies Fixed Carpooling Lower Price per KM On Demand Carpooling Source: Frost & Sullivan. 7
Integrated Key Customers & Future Trends B2C adopting City As A Customer solutions and increasingly B2B the key customer groups for integrated mobility services Key Customers Integration of different transport types at a city and / or country level providing seamless mobility for residents and visitors City As A Customer Many mobility actors / brands have strong corporate ties and are seeking to harness these relationships to deliver new solutions Business 2 Business Increasingly flexible working practices & corresponding changes to company travel policy, company obligations, employee contracts / term & conditions Intense competition between Integrators / Aggregators to meet the needs of Users audits within businesses to become standard practice and appetite for mobility budget allowance for all employees to increase accordingly 8
Vehicle Manufacturers and Integrated OEMs are targeting new customers to future-proof their business via service-based solutions; varying strategies being deployed to create a comprehensive ecosystem OEM One way CS Two Way CS P2P CS Corp. CS Ridesharing Integrated Parking Mgmt. Taxi Hail EV Charging Solar Charging e consulting Bus Tran-sit Location based Urban interface Chauffeur service Courier service Daimler BMW VW PSA Tesla Through VC Subsidiary arm Strategic Partnership with investment Collaboration without investment Source: Frost & Sullivan 9
moovel A Brand First; OEM Owned Second Generating 80M revenue & targeting international expansion and revenues of 800M by 2020 Smart Parking Ride Sharing Taxi Hailing Integrated Car Sharing Urban Logistics further investments and partnerships to be expected Source: Frost & Sullivan analysis. 10
Frost & Sullivan Corporate Study (Ongoing Research) Q. Who in your opinion is best placed to deliver integrated mobility services? Hypothesis: The current market landscape comprises many actors; there will be mixed opinions on the businesses that will be best placed to provider integrated mobility Technology Provider Specialist i.e. PTO Car OEMs Best Player to Provide New Solution - Total Don t Know 4% 13% 14% 13% 15% 25% 16% Corporate Travel Agencies Car Leasing Companies Car Rental Companies Best Player to Provide New Solution - by country UK FR (n=106) (n=98) DE (n=97) NL (n=78) BE (n=86) Car leasing companies 23% 18% 23% 38% 23% Car rental companies 12% 21% 15% 15% 15% Corporate Travel agencies 21% 20% 15% 1% 14% Car OEMs 9% 12% 25% 12% 14% specialist provider 14% 14% 9% 13% 15% Technology provider 8% 3% 2% 3% 3% Q32 Best player to deliver integrated mobility solution service. Base : total n=465. Conclusion: Vehicle Leasing Companies are considered best placed to deliver B2B integrated mobility services however opinions vary across the markets under investigation proving that the future landscape is far from being a foregone conclusion. 11
Future of Integrated Summary A sophisticated partnership-based mobility ecosystem; ongoing technology investment and brand marketing will be key in determining the future leaders in integrated mobility service delivery Search Engines Telecom / Mobile Network Operators Payment Processors Consumer Electronic Companies Consolidated e-ticketing Payment (Split & Micro-Billing) Reconciliation & Expense Management Pre-Time Service Delivery Fully Customised Solutions Spend Management Allowance (not car allowance) 12