Automobile Industry: The automobile industry has seen major changes in recent years on the global stage. Monching the traditional ownership models, vehicle-related services have become more flexible and consumer-centered. Technological innovation, urbanization, environmental concerns and change of consumer preferences have inspired the rise of new business models. These include subscription-based services, vehicle sharing, and Mobility-A-A-Service, Maas. These business models are providing new opportunities not only for automobile manufacturers, but also for transport companies, startups, and smart city projects. These facilities are now gradually succeeding in the market. Let’s know in detail about the effects, benefits, challenges and future prospects associated with these new business models –
1. Subscription-based services
Subscription-based services provide consumers access to a vehicle in exchange for monthly or annual fees, including maintenance, insurance and other services. It is an alternative to traditional ownership models and is especially useful for consumers who are looking for flexibility and low initial costs.
Major companies and services
Various automobile companies and startups are active in the field. In this list, Volvo company provides subscription service called Care By Volvo. The BMW company provides Access by BMW ‘Premium car subscription service. Luxury brand Porsche company porsche provides various models to customers under Porsche Drive. Ola and Zoomcar, included in electric vehicles, have launched subscription-based services in India.
Benefits of subscription model
The benefits from low advance costs, do not need to buy a vehicle in the benefits of the model. You can subscribe to the preferred vehicle at an early cost. The benefits from the alcoholicism, the benefits from the model facilitates changing the different models. Inspectable expenses contain transparency, maintenance in the model, etc. Transparency is taken care of in all the information related to this, apart from this, the customers do not worry about the collusion price of the vehicle falling.
These will be challenges in front of the subscription model
After the subscription model facility, many types of facilities will be easily available to customers, but some challenges are also associated with the trend of this model. Which are as follows –
Expensive monthly fee:
By using the subscription model for a long time, it can spoil your budget. This is only suitable for a limited time period or else this model can prove to be far more expensive.
Apart from this, the driver gets limited freedom compared to traditional ownership. Also, the availability of vehicles and the impact of logistics is also being seen as a challenge.
2. Vehicle sharing facility
Under the new scheme, Vehicle Sharing is also coming out as an alternative. Vehicle sharing implies to share more than one user to the same vehicle. This model is especially popular in cities, where there is a challenge of parking problem and congestion. This concept is prevalent in many types: Car sharing can use vehicles based on consumer membership.
Ride sharing mentor: Consumers can share travel with other people through app (eg Uber, Lyft, Ola). Pier-to-Pier (P2P) sharing: individual vehicle owners can rent their vehicles (eg Turo, Getaround).
Major companies and services
Uber and Ola are the major ride-sharing companies worldwide. Zoomcar and Revv: Self-driving car share services in India. Turo and Getaround: P2P have services based on models.
Benefits of vehicle sharing
Cost saving
Comes less than personal ownership. Apart from this, there is a decrease in traffic and the parking problem is also relieved.
environmental benefits: There is also a possibility of environmental benefits due to fuel saving and decrease in carbon emissions under the new scheme Vehicle Sharing.
These are challenges in front of vehicle sharing facility
In addition to the availability of vehicles under the Vehicle sharing facility, there may be limits of pick-up and drop location. Apart from this, changes in insurance and safety and driver using vehicles are also a problem.
3. Mobility-e-Service (MAAS)
MAAS is a broad concept that tries to integrate all transport means. The aim is that consumers can use public transport, private vehicle services, bike sharing, car sharing and other transport means on the same platform.
Major MAAS platforms and services
WHIM (Finland): A mobile app that integrates all types of transport means. Uber transit: combines public transport with traditional ride-sharing. Citymapper and Moovit make multi-model transport easier in various cities.
(MAAS) Benefits
Mobility-e-Sarawis integrates various transport means along with better passenger experience than facility. In addition, it is a convenient and affordable solution. Smart traffic management is also a great option for cities.
Challenges in front of Mobility-e-Survis facility
In front of Mobility-e-Service
Many challenges such as infrastructure and data integration, the need for cooperation between various service providers and cyber security and data privacy concerns are coming to this option.
4. Prospects of future
With technological development in the auto sector, the future AI and IOT -based smart mobility will be more automatic and intelligent transport means and integration of autonomous vehicles with Maas and subscription models. Apart from this, the inclusion of green mobility with electric vehicles,
New business models such as subscription-based services, vehicle sharing and MAAS are set to bring revolutionary changes in the automobile industry. Through these facilities, consumers are getting flexibility, convenience and affordable options, while environment and traffic management is also improving. However, successful adopting these models in the Indian auto market will require policy-making, technological development and changes in consumers’ habits. In the coming years, these business models will keep challenging traditional vehicle ownership and will play an important role in smart city development.
