{"id":36266,"date":"2022-08-11T14:12:40","date_gmt":"2022-08-11T12:12:40","guid":{"rendered":"https:\/\/www.berylls.com\/shared-mobility-in-a-post-pandemic-world-the-beginnings-of-a-mobility-revival\/"},"modified":"2025-08-13T11:02:19","modified_gmt":"2025-08-13T09:02:19","slug":"shared-mobility-in-a-post-pandemic-world-the-beginnings-of-a-mobility-revival","status":"publish","type":"post","link":"https:\/\/www.berylls.com\/en\/shared-mobility-in-a-post-pandemic-world-the-beginnings-of-a-mobility-revival\/","title":{"rendered":"Shared Mobility in a post pandemic world \u2013 the beginnings of a mobility revival?"},"content":{"rendered":"\t\t
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Shared Mobility in a post pandemic world \u2013 the beginnings of a mobility revival?<\/h1>\n\n Munich, August 2021<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Are we seeing a mobility revival?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Covid-19 has had a massive impact on mobility everywhere. A recent Berylls survey found that many London residents have reduced the number of times they commute each week even post Covid-19 and that many, in addition to supporting the introduction of low traffic zones and vehicle bans, would welcome the introduction of new modes into the city\u2019s mobility mix. No wonder then that curbing private vehicle ownership has become a key pillar in many European cities\u2019 efforts to reduce their carbon footprint. Yet so far few have put forward concrete ideas on how they plan to close the resulting mobility gap, and many look to the private sector for solutions.<\/p>

In this context it is worth noting, that when Volkswagen CEO Herbert Diess was asked to comment on his company\u2019s \u20ac2.5 bn acquisition of Europcar, he said that it was Volkswagen\u2019s intention to use Europcar\u2019s assets to build a mobility platform. Diess\u2019 remarks not only contrast sharply with the renewed focus on core automotive activities touted by many of his colleagues; they also come at a time when mobility platforms seem to be regaining lost momentum: barely a week after VW\u2019s Europcar deal was announced, Uber rival Bolt raised \u20ac 600 m in a funding round that valued the company at \u20ac4 bn or double its \u20ac2 bn March valuation. Are we at last witnessing the beginnings of a mobility revival?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Insight download and author information\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Authors<\/h2> <\/div>\n \n
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DR. JAN BURGARD<\/p>\n

Berylls Group CEO<\/p>\n

jan.burgard@berylls.com<\/p>\n <\/div>\n

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Jens Garrelfs<\/p>\n

Associate Partner<\/p>\n

jens.garrelfs@berylls.com<\/p>\n <\/div>\n

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Volkswagen is only the latest OEM that plans to build a vehicle-as-a-service platform, but many OEMs are reluctant to follow the company\u2019s example\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A look around shows that Volkswagen is only the latest OEM that plans to unite its leasing, rental, car sharing and vehicle connectivity services under the umbrella of a mobility platform. In fact, the outlines of what Volkswagen dubs its \u201cOne Digital Platform\u201d have already been visible for some time at Stellantis, Toyota Kinto as well as Sixt. All these platforms have in common that they are built around a vehicle-as-a-service (VaaS) stack that gives access to a car for a flexible period of time.<\/p>

On the surface, such one-stop mobility shops may seem to do little more than bow to changing customer preferences. As subscriptions models have closed the gap between rental and leasing, they have torn down the boundaries between what used to be \u2013 at least from an OEM\u2019s vantage point \u2013 disparate service offerings. The result: the difference between leasing, subscription, rental, or car sharing models is no longer one of kind, but one of duration.<\/p>

The automotive industry isn\u2019t by far the only area of transportation where added convenience drives customer preferences for one-stop solutions. Yet many OEMs are reluctant to follow the example set by VW and others. The reason is that a VaaS platform\u2019s underlying operating model doesn\u2019t square with how they traditionally approach leasing or leasing-related services. Many OEMs consider leasing \u2013 even car sharing \u2013sales-enablers first and foremost, and many captives measure their success by their ability to help their OEM parent grow unit sales.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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This is not another mobility hype; VaaS platforms are means of leveraging core OEM strengths\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Are VW and others pursuing a mobility vision that is fundamentally at odds with an automotive present in which private car ownership \u2013 not in spite but because of Covid-19 \u2013 continues to dominate? Does on-demand mobility no more than distract from the reality that for most automotive OEMs selling cars remains the single most important source of revenue?<\/p>

We believe that such thinking is rooted in a failure to understand the larger implications of operating vehicles on-demand as part of an integrated VaaS platform. We see such platforms as a means for leveraging the full weight and breadth of what OEMs can offer \u2013 including sales \u2013 in the face of, for example, smaller competitors with more narrowly positioned subscription or flex leasing models.<\/p>

By incorporating mobility services that cater to a broad range of mobility needs, budgets, and occasions, a VaaS platform creates a unified entry point with relatively low barriers to entry. Furthermore, where many OEMs conceived digital sales channels primarily as vehicles to ferry customers to dealer showrooms, a VaaS platform allows customers to move seamlessly from car sharing, rental, and ride hailing to other services \u2013 including in some cases the option to purchase a used car \u2013 as per their own needs, not an OEM\u2019s desire to sell cars.<\/p>

How much more customer-centric VaaS platform-based business models are compared with existing omnichannel retail offerings also shows in the kind of physical formats that complement them. Besides concessions at airports and railway stations, these include downtown pick-up and service locations. By cutting across digital and physical formats, VaaS platforms go where customers are and where their mobility needs arise.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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A VaaS platform spreads customer platform and fleet operating cost across multiple verticals and has the potential to increase per-vehicle earnings or vehicle lifetime value (VLV\u00ae)<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Uniting multiple verticals behind a single frontend allows the fixed cost associated with operating a digital customer platform and attendant physical network \u2013 cost, that is, which each vertical would otherwise have to carry on its own \u2013 to be spread across multiple verticals. The same applies to one-time customer acquisition costs and marketing expenses as well as costs incurred \u201cbehind-the-scenes\u201d for managing, servicing, and cleaning a large fleet of vehicles. The model also permits moving vehicles between verticals to pro-actively manage weekly and seasonal demand peaks.<\/p>

Best-in-class OEMs use VaaS platforms to optimize vehicle utilization over not one but multiple use cycles and a period of up to seven years, throughout which vehicles remain on balance and are serviced by OEM-owned or -affiliated outlets. The key to achieving this is an intelligent asset allocation engine that calculates the optimal next use for each vehicle that has reached the end of its current use cycle \u2013 say, a three-year lease contract \u2013 by using the vehicle\u2019s age, model, equipment level and service history to match it to the service vertical or sales channel that promises the highest monetization potential. In our experience, this kind of data-driven approach to maximizing vehicle lifetime value (VLV\u00ae) can increase OEMs\u2019 per-vehicle earnings by some 15-25%.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The end of the mobility hype in 2019 masked many OEMs\u2019 failure to transform the way they sell cars \u2013 and Covid-19 has only added to this situation\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Of course, even the added convenience of a VaaS platform won\u2019t make private ownership go away anytime soon \u2013 or ever. Yet when the mobility hype ended in 2019, the failure of many OEM-funded new mobility ventures masked the simultaneous \u2013 and potentially more severe \u2013 failure on the part of those same OEMs to deliver on initiatives designed to fundamentally alter the way they sell cars.<\/p>

Many OEMs toyed with idea of adopting direct sales models in hopes of reducing intra-brand competition and wooing customers with greater price transparency. In this model, dealers would act as agents while NSCs and importers would manage vehicle stocks centrally. In the event, few such initiatives advanced beyond the pilot stage. Many did little more than alienate dealers while barely moving the needle in terms of actual sales.<\/p>

Covid-19 has only added to this situation, as the automotive sector\u2019s surprisingly speedy recovery has made many OEMs dangerously complacent about such long-overdue overhauls of their operating model. To further complicate matters, OEMs no longer have the financial resources to invest in risky, cash-burning adventures; they need strategic initiatives that can show bottom-line returns fast.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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A mobility platform follows the same operating principles as a direct sales model and can furnish relevant data and operational expertise\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Among the key reasons why many direct-sales initiatives failed were lack of relevant customer insights and inexperience in managing large vehicle inventories. Both are areas where the operating models of a VaaS platform and an agent-based direct sales model overlap and even complement each other: With access to customer and vehicle usage data across a highly relevant set of day-to-day use cases, a VaaS platform can furnish intelligence on model and configuration preferences and deliver pricing insights on both new and used cars. Moreover, by giving operators the option of rerouting non-sellers to alternative uses, a VaaS platform can relieve price pressure on overstocked lots and thereby contribute to maintaining and managing residual values.<\/p>

This also opens new opportunities for dealers beyond the role of acting as agents, such as operating new physical formats or mobility services through franchise agreements. Giving dealers and their investors a clear, long-term perspective is critical at a time when OEMs must look to external partners to share the cost of future-proofing their operating model with. VaaS platforms are therefore an opportunity to set existing partnerships on a new footing.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Conclusion: a sustainable operating model\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In recent years, several automotive companies have launched vehicle-as-a-service-based mobility platforms. VaaS platforms follow an operating model that is at once customer-centric and cost-conscious. It is also compatible with \u2013 even complementary to \u2013 an agent-based sales model, which many OEMs have made the mistake of abandoning too soon. What we\u2019re seeing then is not a mobility revival so much as on-demand mobility moving to the center of the automotive agenda, as some OEMs move toward a VaaS operating model that is sustainable not because it is built on customer-centric innovation but because it enables profitable growth through higher vehicle lifetime value.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Dr. Jan Burgard<\/p>\n

Dr. Jan Burgard (1973) is CEO of Berylls Group, an international group of companies providing professional services to the automotive industry.<\/p>\n

His responsibilities include accelerating the transformation of luxury and premium OEMs, with a particular focus on digitalization, big data, connectivity and artificial intelligence. Dr. Jan Burgard is also responsible for the implementation of digital products at Berylls and is a proven expert for the Chinese market.<\/p>\n

Dr. Jan Burgard started his career at the investment bank MAN GROUP in New York. He developed a passion for the automotive industry during stopovers at an American consultancy and as manager at a German premium manufacturer. In October 2011, he became a founding partner of Berylls Strategy Advisors. The top management consultancy was the origin of today’s Group and continues to be the professional nucleus of the Group.<\/p>\n

After studying business administration and economics, he earned his doctorate with a thesis on virtual product development in the automotive industry.<\/p>\n<\/div>\n <\/div>\n

\n Contact us<\/a>\n More about Berylls<\/a>\n <\/div>\n <\/div>\n
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Shared Mobility in a post pandemic world \u2013 the beginnings of a mobility revival? Munich, August 2021 Are we seeing a mobility revival? Covid-19 has had a massive impact on mobility everywhere. A recent Berylls survey found that many London residents have reduced the number of times they commute each week even post Covid-19 and […]<\/p>\n","protected":false},"author":22,"featured_media":21211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85],"tags":[],"class_list":["post-36266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured-insights-en"],"acf":[],"yoast_head":"\nShared Mobility in a post pandemic world \u2013 the beginnings of a mobility revival? - Berylls - making automobility viable<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.berylls.com\/en\/shared-mobility-in-a-post-pandemic-world-the-beginnings-of-a-mobility-revival\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shared Mobility in a post pandemic world \u2013 the beginnings of a mobility revival? - Berylls - making automobility viable\" \/>\n<meta property=\"og:description\" content=\"Shared Mobility in a post pandemic world \u2013 the beginnings of a mobility revival? 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