In the previous post I described a new value chain that will connect companies providing on-demand personal mobility services and three emerging models for this value chain. This value chain is the result of the consumer shift from a car ownership-centric transportation model to a hybrid model that blends car ownership with vehicle access through a combination of on-demand mobility services and public transportation. It is also based on the stated intent by the providers of certain of these services to adopt Autonomous Connected Electrified (ACE) vehicles. Various acquisitions, partnerships, including the recently announced partnerships between Waymo and Avis, and Apple and Hertz, and investments by automotive industry incumbents and by companies offering, or intend to offer, on-demand mobility services point to new ecosystems that will be developed around this value chain. In this post I provide a deeper analysis of the emerging value chain and explore investment opportunities in startups that will participate in it.
This post first appeared on 4/27/17 in O’Reilly’s site. It has been revised since it first appeared.
In my book The Big Data Opportunity in Our Driverless Future I make two arguments. First, societal and urban challenges are accelerating the adoption of on-demand personal mobility services. Second, technology advances, including big data and AI, are making next-generation vehicles, and specifically Autonomous Connected and Electrified (ACE) vehicles a reality. I define Next-Generation Mobility as the movement of people and goods using a combination of ACE vehicles, and of transport services such as ride-hailing, car sharing, ridesharing, and others that are offered on a short-time, on-demand or as-needed basis. Next-Generation Mobility will cause three major shifts that can lead to the disruption of the automotive and transportation industries: a consumer shift, an automotive industry shift, and a mobility services shift.
In a series of posts, starting with this one, I examine what is causing these shifts, one of the value chains that is emerging as a result of these shifts, big data’s and AI’s key roles in the value chain, and the models being created around this value chain.
The Consumer Electronics Show (CES) is starting later this week and will be followed by the Detroit Auto Show (DAS). Both shows will serve as venues for the automotive industry to showcase Autonomous Connected Electrified (ACE) vehicles and new Mobility Services. ACE vehicles combined with Mobility Services such as ridesharing, car sharing and multimodal transportation options will give rise to a new personal mobility model that combines car ownership with car access. These innovations and the emerging model are creating two challenges for the automotive industry.