The shared e-scooter war in Rotterdam

8

October

2020

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Rotterdam is the main Dutch battleground for shared e-scooter companies. In this blog I’ll explain how these companies try to gain a foothold and the characteristics of the local market. Last, you get some tips for testing them yourself.

But first, how did it start? In 2018, the start-up Felyx was the first to arrive in the city. The founders weren’t unfamiliar with Rotterdam as one of them is a former EUR student. The business concept was born when driving a car2go in Amsterdam. However, a car in the big city is far from the fastest way to move around. The scooter is. To get a municipality like Rotterdam on board there needed to be something in it for them, too. The e-scooter was the answer as it isn’t loud and locally polluting (Hollingsworth, J., Copeland, B. and Johnson, J.X., 2019). The sharing functions are enabled by IoT technology.

Soon there were hundreds of free-floating scooters to be found all around the city. At first, students were the main target group later expanding into young professionals and freelancers as well (Top of Minds. 2020). The new concept was mainly appealing as it was fun to drive the scooters, but customers soon identified improved convenience and freedom of this transport mode in comparison with their own bike. In that way it is surprising that this concept can be successful in a biking country like The Netherlands.
Fast forwarding to now, there are yet two companies that have joined Felyx in Rotterdam: Check and GoSharing. They all have different ways in which they try to lure you to their platform. Felyx has the advantage of being the incumbent with Felyx being an acronym for e-scooter. They leverage this by charging a relatively high per-minute fee and no staring fee. GoSharing uses volume deals to get you addicted to scooter sharing. Starting with an average per-minute fee when using the scooters without a deal but getting pretty cheap when you buy large minute packages. They limit the amount of free minutes when joining the platform. Check did exactly the opposite by rampaging into Rotterdam with a low per-minute fee, no starting fee and 15 euros of worth of riding for free.

The market-entry tactics have led to a strange dynamic in this market. Felyx is going reasonably steady as they haven’t performed stunts to gain market share at any time. At Check, this is a different story: their market-entry tactics have lead to giving out so many free minutes of riding that it took them months to boost revenues. The upside is a considerable gain in the number of users. The upcoming months will tell if they can retain them now that riding is not free and a starting fee is introduced. GoSharing is found to compete less on price. What they are doing is connecting edge cities and suburban areas of Rotterdam by creating service areas in villages. Commuters are able to pick scooters up close to home and drop them in the city centre. At the end of the day they can find an available scooter again to travel back.

Time will tell whether this is a winner takes all market, like many recently disrupted markets are. In the meantime all of the providers have found investors with deep pockets, currently favoring the consumer. I think there will be space for multiple providers. Furthermore, I believe that the most important aspect is the availability of scooters in the right places at the right time and second is the ease of combining trips with other transport modes such as the subway.

Are you interested in trying one of these services out? Get some free riding minutes with Check promocode MMN-GN4, Felyx code RSqGv8CW or GoSharing code XZ26IZ.

If you’re already using shared e-scooters in Rotterdam I’m looking forward to hearing from you in the comments. Which provider do you like and why? And do you think the market will eventually head towards a monopoly or will there be space for 3 or more providers in the future?

References:
Hollingsworth, J., Copeland, B. and Johnson, J.X., 2019. Are e-scooters polluters? The environmental impacts of shared dockless electric scooters. Environmental Research Letters, 14(8), p.084031.

Top of Minds. 2020. Carrière Advies Van Quinten Selhorst En Maarten Poot | Top Of Minds. [online] Available at: [Accessed 8 October 2020].

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The Impact of Data on Trends in the Automobile Industry

7

October

2020

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According to McKinsey, big data’s influence on the automobile industry has the potential to generate $750 billion in revenue by 2030. While only a few years ago the idea of integrating internet connections and web applications into our everyday vehicles seemed revolutionary, big data has become a norm in the automobile industry. These innovations have provided more customized and safe driving experiences for car owners. Additionally, big data has also enabled car manufacturers to produce more efficiently and understand the preferences of their customers more accurately.

One of the most significant advantages that big data offers to automakers is improving the manufacturing process. It is estimated that data from a car’s engine has led to significantly decreased maintenance needs, which on average allow companies to save 10 to 20% percent in maintenance costs. According to a report from McKinsey on the monetization of data generated from vehicles, 73% of consumers globally are willing to pray for predictive maintenance services.

On the other hand, the digitalization of the automobile industry has also led to new products and services which enhance the efficiency of transportation. Apps such as Waze leverage data provided in real-time by app users and report information on traffic, accident, and other alarming news. The app’s platform encourages users to share their personal data, including their live location, in order to increase value for other users. This crowdsourcing model is just one example of how a business opportunity was created from connecting vehicle data with a practical application.

Due to the rapidly changing demands of consumers, players in the mobility industry such as alternative transportation providers, insurance companies, and vehicle manufacturers must continue to adapt to the megatrends and will play critical roles in providing complementary services to vehicle owners using data. In order to get a closer idea at the drivers of innovation, the visual representation below illustrates the cyclic nature of four disruptive technological trends. These trends will require incumbents to strategically position themselves in order to derive value from data retrieved from vehicles.

Screenshot 2020-10-07 230821

Lastly, the following approaches are, according to McKinsey, fundamental for companies looking to capture value from vehicle data monetization. First off, developing a compelling value proposition is key for incentivizing customers to share their data. Second, it is crucial that industry players define use cases where data will be leveraged in their business model. Thirdly, in order for these strategies to be implemented, the right technical enablers must be present. Fourthly, and finally, developing the vital partnerships along the value chain will be key in gaining the right capabilities for data monetization.

Although this is a mere glance at big data’s impact on the automobile industry, it’s important to consider the different ways in which industry players are leveraging your data and how!

 

References

McKinsey Article: Monetizing Car Data

https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive%20and%20Assembly/Our%20Insights/Monetizing%20car%20data/Monetizing-car-data.ashx

On the Road Trends Article: Big Data and the Automotive Industry: The Future is Here

https://www.ontheroadtrends.com/big-data-automotive-industry-future/?lang=en

 

 

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Google Maps will now help you find a parking space

11

September

2017

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When you head away on your travels, it is always recommended to hire a car to find the best locations and get away from the tourists. But, hiring a car and driving around a new city can be time-consuming and stressful when you look for a location to park your car.

I am not sure about everyone else, but we have a tendency to over-rely on incredible Google Maps and/or Waze when travelling as both apps will direct you to your destination, usually offering the quickest method available, whilst you focus on your driving.

The latest Google Maps will now find parking spots along the way to your ultimate destination. It’s as simple as selecting “Find Parking” and, whilst you drive, Google will offer you various parking options and you can pick or choose, depending on how close you are to your final point.

Google is now becoming a major contender when it comes to location-based solutions. While having Waze, Google Maps, Urban Engines, and together with its autonomous driving technology (which will probably be available in the upcoming years) it seems like they have the ability to disrupt the Automotive industry. However, the Mobility-as-a-service market is still not profitable.

Uber and Google are still not making money by offering mobility services such as Waze, Maps, or ride-hailing services. Yet, they do disrupt a whole industry which used to be very strong for over four decades.

Uber is a like a “Mack Truck just rolling down the street gaining speed,” said Magid Advisors President Mike Vorhaus on CNBC’s “Fast Money” this week. “So I do think we’re eventually going to see this in the numbers of auto sales.”

These tech giants understood that when cars will become electric and autonomous (and probably cheaper as well), there will be a huge gap in the middle to provide mobility services packages. Same as the Smartphone revolution. The automotive manufactures know that there is a big “storm” coming ahead and are making the right changes to become competitor in this field. But there is a question which still stands – How can companies like Toyota, BMW, Mercedes-Benz and General Motors, who are experts when it comes to metal and oil, will compete in the unknown territory of IT against Google, Uber and others tech giants?
After disrupting the Internet,Mobile, Music, Video, Gaming, Navigation, Mapping, Operating systems and many other industries – Google is planning to do it again to the Automotive industry.

 

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Ford: From Building Cars, to Building an Ecosystem

4

October

2016

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Ford is changing its focus: from being a carmaker to being a mobility company. The first step into that direction came with their app: FordPass, and now two more recently done announcements makes this suspicion stronger:

  • Ford is buying a rideshare startup called Chariot.
  • They are partnering with Motivate (the company behind all those Citibikes in NYC) to expand the San Francisco’s bike share program.

With these two investments and the app Ford’s plan becomes clear: evolve from being only a (old-fashioned?) carmaker to both a car and mobility company.

 

So what is Chariot?

Chariot is a company that operates a shuttle service around San Francisco.

What makes it a good alternative to public transpiration is that the shuttle costs around the same price as a normal buss ($3) and is equally reliable.

Chariot operates on 26 routes right now, which they got in an interesting way: the crowdsourced it. This way they only serve the neighborhoods that really need the shuttle service.

With the acquisition Chariot’s team will now join Ford and expand in other markets to grow further.

 

The partnership with Motivate.

Ford will be partnering with Motivate. This will result in an increase from 700 to 7000 shareable bikes and hundreds of pick-up and drop-off locations in the San Francisco area by 2018. This partnership will go further under the name “Ford GoBikes”.

 

And it comes all together in an app.

The FordPass app is an app that is quietly becoming a one-stop shop for all transportation needs. Ford owners can schedule maintenance with it, but also non-Ford owners can use the app to find parking, plan the most efficient route home and soon now: locate the nearest bike pick-up or book a shuttle. As Ford’s CEO explains: “We’re thinking about this as an ecosystem. How do the bikes not only serve a need… but also feed data that will allow us to provide them even more services? For example, if it’s going to rain, we can send them a note that says ‘you should take the shuttle, and here’s an incentive to do that?

 

As Henry Ford said: “If I had asked people what they wanted, they would have said faster horses.” Now, apparently, Ford moved to the rest of the farm.

Sources:

http://www.recode.net/2016/9/9/12860834/ford-chariot-motivate-gobike-san-francisco-mobility

https://www.motivateco.com/

https://techcrunch.com/2015/01/26/chariot-new-route/

http://www.recode.net/2016/9/9/12860834/ford-chariot-motivate-gobike-san-francisco-mobility

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