OEM Transformations: The Benefits of Subscription Models

The changes we have seen over the past 10 years in urban consumer transportation preferences with the ascend of on-demand mobility services should have convinced OEM executive teams that significant transformations of their business are necessary. For some OEMs transformations will imply producing vehicles that are based on sophisticated technologies, such as self-driving cars. For others it wil imply the adoption of new business models. OEMs will start offering vehicle subscriptions and mobility services directly to consumers as a result of their transformation.

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The three phases of next-generation mobility

In my forthcoming book Transportation Transformation I define next-generation mobility as the intelligent movement of people and goods using automated (or autonomous), connected and electrified vehicles. Next-generation mobility is still in its infancy, but I predict it will unfold in three phases.

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From 30 miles per day to 30 steps:

As a result of the movement restrictions imposed because of the pandemic, my 30-mile average daily travel around the Bay Area and the monthly airline trips have all become a 30-step walk to my home-office for video calls. While we’re all eagerly anticipating the lifesaving health outcomes from the measures taken towards the pandemic, the retail, travel, and hospitality industries are reeling.

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