New business models such as Mobility-as-a-Service to gain traction with the integration of multiple mobility platforms
The overall carsharing vehicle pool is expected to expand from 983k in 2017 to 1237k in 2018, driven by motorists’ desire to use alternative modes of transport, the rise in employee mobility options and environmental concerns.
According to new research from Frost & Sullivan, existing providers of recent mobility solutions like carsharing, ride sharing, ride hailing, on-demand responsive shuttles, and integrated mobility are already scaling their operations through consolidations and partnerships.
This trend is illustrated by the latest example of BMW and Daimler merging their carsharing units to become the global market leader, commanding over 30 per cent of the overall carsharing market.
Smaller players are trying to retain their market share by either forging partnerships with bigger players or by expanding their business models.
New synergies in the market are fostering converged mobility solutions, creating a new space for mobility integrators and Mobility-as-a-Service (Maas) providers.
“The highly dynamic market for new mobility solutions is expected to follow an emergent growth paradigm that leverages novel business models, sectoral partnerships, and consolidations,” said Geraldine Priya, mobility team lead at Frost & Sullivan (F&S).
“As business models diversify, we will see substantial investments in electric vehicle (EV) and autonomous vehicle (AV) pilots. Indeed, the ranks of operators offering self-driving cars for ride hailing services are swelling, with Waymo following Uber and Lyft into this market.”
According to F&S, emerging growth opportunities within key segments of the mobility market include:
Carsharing: Increased adoption of EVs, improved regulatory support, and integration of carsharing operations with other mobility modes are all driving growth within this segment.
Ride sharing: Increased competition for market share, strategic partnerships, and investments will drive market growth. The corporate ridesharing market, specifically, will begin to pick up as companies are looking to move to more sustainable ways of transport.
Ride hailing: Greater support from governments, bundled services, and growing online population will allow for greater penetration of ride hailing services into the traditional taxi market.
DRT: Big data analytics and algorithms for real-time and flexible operations will disrupt the current market, while transit authorities and agencies will be key to restructuring the traditional bus transit model.
Integrated mobility: Greater synergies between private operators and OEMs will support expansion of operations. In addition, cities and local transport operators are opening up to the idea of offering MaaS to ease the congestion and pollution issue in cities.
As well as competition from the market giants, smaller operators also have to contend with tight regulatory frameworks that often affect growth of the current mobility business solutions.
Priya commented: “While challenges exist in the form of regulatory outlook, competition, and the advent of advanced technologies, the escalating demand for mobility solutions and new business and revenue streams offer ample opportunities to mobility operators.”