Our reliance on owning a car has created one of the largest industries in the world. Today, however, our relationship with the automobile is changing as new business models aim to replace conventional car ownership with a combination of ride-hailing and vehicle-sharing accessed through mobile apps – a trend we call shared mobility.
The rise of shared mobility services like Uber and Lyft is threatening to disrupt the multitrillion-dollar automobile industry. Self-driving cars, zero-emission vehicles, connectivity, and innovative materials are defining mobility's future. In our new report, “Sharing is Scaring: New Business Models Disrupting Mobility," we took a deep dive into the business models and themes disrupting this age-old industry.
Recently, two key changes began emerging in this space. First, shared mobility companies are pursuing integration of many services and transportation modes, such as scooters and bikes, into one platform rather than developing one specific app or business model. Second, the industry’s growth is attracting a diverse array of competitors, including automakers, transportation network companies, and tech companies.The shift from pursuing a single business model, which characterizes Shared Mobility 1.0, to Shared Mobility 2.0, is providing opportunities for new competitors.
Transportation network companies like Lyft and Uber are no longer startups. The top four ride-hailing companies in the world – Didi, Uber, Lyft, and Grab – have a combined valuation of $166 billion. These companies are no longer focused on expanding into new markets with ride-hailing services; most markets are already saturated with such options. Instead, multimodality – providing access to different modes of transport, such as bikes and cars, on their platforms – is now a key focus.
We have found that different sectors are creating strategies to develop shared mobility platforms, and that no single industry is best-positioned to own this future. Autonomy and integration of public transport into shared mobility platforms are two key differentiators in the future of shared mobility, which will ultimately help drive these new business models to profitability.
Autonomous vehicles are the most important technical development shaping the future of shared mobility. Autonomous vehicles promise to drastically alter the financials of ride-hailing. Despite the disruptive promises of shared mobility, no companies have been able to maintain profitability. Navigating this change will be crucial for success, especially as shared mobility companies’ competitors have more experience in fleet management.
- Executive Summary: Sharing is Scaring: New Business Models Disrupting Mobility
- On-Demand Webinar: Avoiding Extinction in an Era of Shared Mobility
- Report: Key Players and Business Models in the Connected Car (Members Only)
- Analyst Insight: Durability is the Latest Trend in Dockless Scooter-Sharing (Members Only)