Many innovations and mobility services are blurring the lines between public transport and private car ownership, creating several opportunities for new mobility services finds Frost & Sullivan’s Future Mobility team
LONDON – 4 October 2017 – Over the past few years, urban municipalities’ need to combat congestion and pollution has driven transformational mobility solutions such as carsharing, e-hailing, ridesharing, and bike sharing. While challenges exist in the form of the regulatory outlook, competition, and advent of new technologies, the increasing demand for mobility solutions and new business and revenue avenues for growth offer ample opportunities. Original equipment manufacturers (OEMs) are exploring new opportunities across the shared mobility ecosystem. Partnering with and investing in e-hailing, ridesharing, smart parking, and technology providers will help OEMs realize their goal of becoming a one-stop shop for all mobility needs.
Frost & Sullivan’s research, Global Mobility Market, Strategic Insight 2017, finds that mobility solution providers are expected to focus on offering robust security systems to enable cashless payments and understand customer preferences. The study analyses the evolving business models, advanced technology trends, market consolidations and partnerships, and regulatory reforms currently occurring within the global mobility space. Six collaborative business models, i.e. carsharing, peer-to-peer carsharing, corporate carsharing, e-hailing, integrated mobility, and ridesharing are discussed in the report.
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“Traditional modes of travel included taxi services which was used for short distance travel but is costly, and then there is public transport that covers longer distances but is less expensive. The mobility landscape is now evolving with a host of mobility services like carsharing, carpooling, bikesharing that are combining the benefits of both. Thanks to smartphones, connected transportation services are becoming more efficient and convenient. People are able to commute in buses, cars, trains, bikes with the help of increased access to information and the awareness of different solutions pertaining to a personal mobility need. With a goal to offer more convenience in transportation in which people can chose the most logical means of transport, the idea of integrated mobility services is emerging. Integrated mobility business models will create a single proposition that is competitive to private car ownership and public” said Frost & Sullivan Future of Mobility Industry Analyst Albert Priya. “With OEMs shifting to the car-as-a-service business model, mobility-as-a-service is expected to take off.”
Technology is facilitating a rise in new mobility business models, particularly app-based, on-demand services that encourage access to mobility, rather than ownership. Strategic imperatives for success and growth in this dynamic market include:
“In the long term, user experience will shift from a product-based experience to a service-based one, and the focus will be on connectivity,” noted Priya. “Cities are launching Smart City initiatives across the world and shared mobility will be at the core, providing first- and last-mile connectivity.”
Global Mobility Market, Strategic Insight 2017 is part of Frost & Sullivan’s Future of Mobility Growth Partnership Service program.