Updated: Dec 5, 2022
The advent of autonomous vehicles is not only shifting the way the automotive industry does business, but bringing rise to a whole new industry: the mobility service provider. At Movimento, an Aptiv company, we’ve developed the Inside-Out Smart Mobility model to illustrate the new relationships between consumers, automobiles, OEMs, and mobility service providers.
Smart Cars & Smart Cities It’s evident that fully automated vehicles will start taking over the roads soon. However, to enable these autonomous vehicles, roadways and city infrastructure must also be smart and connected. Initially, the vehicle will have to drive from point A to point B while sharing the roadway with both autonomous and manual driven vehicles, in a safe and efficient way. The consumer may need to influence the route taken. For example, you may need to tell a robo-taxi where exactly to stop in a busy city street so you can safely exit. Or you will need to move a disabled vehicle after an accident. The car may have to handle traffic and transportation infrastructure beyond street signs and crossing lights. It may have to pay for tolls, figure out that a lane is blocked because of a construction site or make way for an emergency vehicle. In some situations, the customer may need additional assistance from the mobility service provider since they may not be familiar with the vehicle and what to do. The operation of the vehicle will drastically change. While there will still be much interaction with the car, consumers will have to authenticate themselves. Consumers will have to communicate destination and route preferences, and in many future mobility service scenarios they will no longer drive themselves. Becoming passengers, time during trips will be used in different ways – productively or for leisure. Becoming passengers, time during trips will be used in different ways – productively or for leisure. Travel time may be used to relax. Alternatively, customers may take on a more active role while on the route, interacting with their surrounding environment, noticing details they were not able to observe and enjoy as a driver.
OEMs & Suppliers Vehicle manufacturers and suppliers are leveraging massive amounts of data generated by autonomous vehicles to create new products and services while improving existing ones. This allows for predictive maintenance of vehicles and early recall detection, while enabling the continuous enhancement of autonomous vehicles through over-the-air software updates. New on-board marketplaces are being developed that will host a variety of third party applications and enable digital billing and payment options. Consumers will be provided with a multitude of entertainment and utility options where they can make a reservation, order food or simply be productive on the go. OEMs and suppliers will continue striving to make the in-vehicle experience safer and more reliable for consumers. Considering the shift of the automotive industry from vehicle ownership to mobility-as-a-service, they are also exploring fleets and fleet management systems. In the mobility services world, consumers do not have to worry about vehicle maintenance and repair themselves. There will be a multitude of aftersales services provided by OEMs and suppliers to the mobility service provider such as fleet management, configuration, monitoring, diagnostics and software update services. Such services may not be end-consumer facing and only contribute indirectly to the consumer’s perception of quality and reliability.
Green Cars & Ride Sharing An increasing demand for electric vehicles (EVs) will drive vehicle manufacturers and suppliers to provide eco-friendly and sustainable options to customers. EVs are becoming popular due to the rising fuel costs and enticing tax rebates. Additionally, consumers value time now more than ever, and with convenient and cost-effective options, people are less concerned about things such as vehicle maintenance and parking. Mobility services will soon take over the automotive industry and include a wide range of transportation services from robo-taxis, ride-hailing and ride-sharing, to a variety of rental and lease services. Mobile stores and autonomous delivery options are going to bring everything that a consumer needs right to their doorstep by providing “on-the-go” e-commerce and dining experiences. From a consumer standpoint, specific vehicle brands of robo-taxis may be less relevant, as long as expectations for cleanliness, space, comfort and convenience are reasonably met. There may be several tiers and “specialty” offerings where the brand of the car may still matter. For rental and lease services, the type of vehicle and brand may still be very relevant. For a ski trip to the mountains, consumers may prefer a car and brand with a high safety reputation. For a family vacation, consumers may splurge for a vehicle that would normally be financially out of reach. In case of accidents or breakdowns, responsibility for cause and dealing with the aftermath may be shared between other parties involved, the mobility service providers and the OEMs. Today’s aviation industry may provide an indication on how the role of mobility service providers and vehicle manufacturers will be viewed. In the aviation industry, consumers pay close attention to the operational reputation of carriers, such as how old the fleet is, how well the fleet is maintained and which planes are in the fleet, as well as the reputation of airplane manufacturers. The automotive industry is likely to follow a similar business model.
Family & Friends Today, many existing automobiles are beyond their utilitarian purpose of transportation and are viewed as a status symbol and a source of self-esteem and recognition. The manufacturer brand may not matter as much as the characteristics of the vehicle itself. Design, convenience, safety, performance and quality of the product are relevant since consumers invest a significant amount of their wealth into the product and are responsible for its operation and upkeep. Since vehicles will not be owned anymore, the vehicle’s role as a source of self-esteem and recognition may be diminished. However, consumers may compensate gaining status and satisfaction by using mobility services. These services may be perceived in society as more modern, technologically advanced and environmentally friendly. Consumers may gain status by sharing rides, providing rides, sharing their cars, driving responsibly, efficiently and safely. Thus, usage monitoring and scoring, usage-based insurance and similar related services gain importance. With mobility services, the consumer’s relationship with automobiles will change significantly, based on the in-vehicle services offered to them. Consumers may further use the newly gained time to socially connect with family, friends and their community. After the home and office, the car will be the third space in which consumers are digitally connected. Next to all the social network and communications services that are already available on the mobile phone, there will be a wide range of new services that are linked to mobility services. For example, parents may want to monitor and ensure that the robo-van brings the kids safely to school and back home, or a student may want to do a background check on the driver who offers a ride-share to the university town three hours away. In each of these quadrants, there will be a multitude of service providers offering a wide range of mobility, safety and security, social and communication services that will be aggregated and personalized by new mobility service providers such as Movimento, an Aptiv company. Smart mobility is changing our relationship with vehicles, fundamentally changing the way we get from point A to point B. This blog is a part of the Smart Mobility series. Read more:
Rethinking the automotive industry
Millennials make a ‘CASE’ for smart mobility
CASE framework: Our customer-centric approach to smart mobility