Disruptions to Vehicle Ownership
- Lee Colman
- 5 days ago
- 2 min read
Updated: 4 hours ago
While OEMs focus on scaling EV sales into new markets and customer groups, they must also plan, over the longer term, for risks to their conventional business models. Most already have ownership improvement strategies on their horizon, such as prioritisation of digital channels, personalisation, and direct to consumer delivery. Beyond these measures, a broader set of frictions from alternative travel modes will lead different customer segments to view vehicle ownership in different ways.
Alternatives to vehicle ownership have been available since early 2000s. There is now a broad range of alternative mobility types available such as eScooters and eBicycles, car sharing platforms and ride hailing services. But, despite usage of those mobility types growing over time, not all companies providing mobility services have been successful.
It is common for users (those seeking to make a journey) to have a choice of mobility types, and a choice of different companies offering the same mobility type. Therefore, competition between these mobility providers is strong.
Shared solutions and urban opportunities
"Shared mobility has the most potential for future growth, but while the mobility sector evolves, affecting private vehicle ownership, there is not yet a definitive direction the ecosystem has moved toward. Regional and regulatory differences play key roles in shaping the ecosystem.
How governments choose to approach policies related to vehicle ownership could lead to different outcomes. Our research suggests that shared solutions like car sharing and ride sharing, followed by other mobility services like ride hailing or e-scooters/e-bikes, with main focus in urban areas, stand to grow in popularity and convenience."
Case Study: New mobility does not necessarily mean automotive OEM disruption
A shift in how people access vehicles does not necessarily translate into complete disruption of the automotive OEM business model or into an overall loss of revenue. New opportunities are created.
Uber operates a usage-based payment model, like other mobility marketplaces such as Lyft, Bolt and BlaBlaCar. To grow, those companies have to increase the number of journeys made through the app.
The Uber ecosystem has grown to include multiple mobility modes and supporting also revenue-based financing which allows potential drivers to secure a vehicle loan based on potential future ride hailing earnings. For countries where vehicle ownership and incomes are low, but demand for mobility is increasing, revenue-based financing could be a route into professional drivers obtaining a vehicle and riders getting access to mobility.
SBD says: Though these models may in some way threaten an automaker’s ability sell vehicles, they may also present an opportunity to sell vehicles in regions which weren’t previously accessible.
SBD Automotive's Disruptions to Vehicle Ownership Deep Dive provides a detailed analysis of how shared mobility, eScooters, car sharing, ride hailing, and subscription models are changing demand and commercial models. To request the report and arrange a tailored briefing or a scenario workshop that maps specific mobility risks opportunities and next steps for your business, please contact your SBD Automotive representative or email us to book a session.
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