the shift from ownership to usage: future implications · 2019. 12. 16. · ownership to usage:...

The Shift from

Ownership to Usage:

Future Implications

Motor Finance Europe, Frankfurt

7th April 2016

2

MOBILITY MOBILITY

Frost & Sullivan: Thought Leading In A Fast Changing Landscape

Sharing Economy

Vehicle

Financing

Connected Cars

Source: Frost & Sullivan

3

Virtualization

Congestion

Transport =

Door-to-door Mobility

• New Vehicles: BRT, EV,

High Speed Rail

• New Business Models:

Vehicle Sharing, Car Pooling

• Inter- Connectivity: Inter-

modality

• Urban Planning:

Reallocation of street space

• Integrated Mobility: New

technology enabled multi

modal integration

Paradigm Shift from Vehicle Ownership to Vehicle Usage Public and private transport are converging; Integrated Multi Modal Mobility Networks being created

Transport =

Private Vehicle

• Freedom

• Convenience

• Status

• Progress

• No Real Alternative

Gen Y

Connectivity

Population

Growth

Urbanization

Social

Responsibility

Natural

Resources

Pollution

Globalization

Mobility Integration: Paradigm Shift from

Vehicle Ownership to Vehicle Usage


4

Vehicle Financing: An Evolving Industry Threatened by Revolution As Usage takes hold the competitive landscape is shifting as people seek ‘better’ mobility

OPTIONAL

ESSENTIAL

CONFORMATIONAL

ASPIRATIONAL

I CAN

AFFORD IT

HELP ME

AFFORD IT

WHAT VEHICLE

DO I NEED?

MAKING SURE

AFFORDABLE


5

Carsharing

• Round Trip

• One-Way (A-B, A-X)

• Peer to Peer (P2P)

• Corporate

Ridesharing

• Fixed Carpooling

• Dynamic / On-Demand

• Corporate

Bikesharing

• Bicycles

• E-Bikes

• Peer to Peer

Micro Mobility

• Scooter Sharing

• Dedicated micro concepts (e.g. iRoad)

“Car on Demand”

• Taxi / e-Hailing

• Transportation Network Companies

• Ridesplitting / taxi sharing

• Microtransit / dynamic Shuttle

Car Rental

• B2C

• B2B

• B2B2C

Parking

• P2P Parking

• Parking Apps

• Plan/Book/Pay case studies

Mobility Financial Services

• Car Finance (Ownership)

• Leasing (incl. flexible leasing)

• P2P Lending (incl. fractional ownership)

• Payment Services (Fuel Cards)

• SMR, Insurance

Integrated Mobility

• Multi-Modal Journey Planning

• Aggregated Booking

• Payment Solutions

• Multi solution offerings / partnerships

Mobility Categories

Mobility Mapping The Mobility ecosystem is expanding rapidly which in turn is creating new financing opportunities


6

Carsharing

Round trip

P2P

One way

Corporate

Renter returns vehicle to same

parking lot / garage where rental

commenced (Station Based)

Asset light model;

connecting Lenders

with Renters

A company pool car,

managed by CSO,

made available to

all employees for

business (and

personal) use

Renter able to

leave vehicle at

any designated

parking space

(Free Floating)

Carsharing Market: Types of Carsharing Services, Global, 2015

Carsharing Definitions The market has been evolving since 2011 with tailored solutions being implemented as new use cases

created / new customer needs identified. Trip type and cost are the key variables


7

USA: 532,000 members

53,200 vehicles

France: 1.5 million members

99,573 vehicles

Germany: 162,000 members

18,000 vehicles

2014

P2P Carsharing Market: Members vs Vehicles, Europe and North America, 2014 – 2015

1

Netherlands: 165,000 members

21,500 vehicles

Spain: 85,710 members

7,321vehicles

Other Key Markets

2015

2

4

3

5

North America: Getaround, Turo

Europe: Tamyca, Drivy, Ouicar

Key Market Participants

Members

Vehicles

Top 5 P2P Carsharing Countries

0.32

1.00

0.03 0.08

0

0.2

0.4

0.6

0.8

1

1.2

NA EU

Mil

lio

ns

0.53

2.12

0.05 0.16

0

0.5

1

1.5

2

2.5

NA EU

Mil

lio

ns

P2P Carsharing Market Landscape P2P membership in EU and NA doubled in 2015 (2.65 Million) with vehicles being made available to

hire growing by 78% (214,367)


8

P2P Business Models – Making Money / Helping Others


9

Private Lease: Market Presence, Europe, 2015

Low High Unknown

IT: Strong growth

expected in 2016

FR: LeasePlan to

reintroduce

Private Lease

NO: 30,000

Portfolio

NL: Private Lease

doubled in 2015 to

30,000;

SE: Private Lease

accounted for 11.5%

of new car registrations

in 2014

NO: Santander’s

Private Lease Brand

NL: Business Lease

launch privatelease.com

Market Innovation: Sharing

Economy & Private Lease

In 2016 Peer to Peer (P2P)

Rental expected to further

support private lease as likes of

GoMore, DriveJoy, easyCar

Club extend partnerships with

OEMs and Leasing Companies

to deliver new usage solutions

UK: Indirect Broker

market growing rapidly

DK: Market Leader

(strong relationship

with PSA)

Private Lease – A Growth Opportunity The Nordics, Netherlands, and UK are recording extremely strong growth in private lease; in 2016, this is set

to be maintained with markets, notably Italy and Spain, growing fast through white label bank partnerships.


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1 Vehicle finance providers must stay relevant in order to meet the needs of the fast growing

base of Sharing Economy customers e.g. amend contracts to permit P2P renting, develop

new products to appeal to shared usage / ownership (Audi Unite)

2

FinTech is the catalyst driving forward P2P lending - it has the potential to become a hugely

disruptive force in the vehicle finance space. Incumbents cannot rely on regulation alone to

eliminate this competition since businesses built on innovation / best technology are well

positioned to adapt

3 Traditional car finance (ownership products) is being eroded as a result of usage; providers

will need to develop private lease offerings either through partnership or acquisition

4 Mobility, in Urban areas initially, is moving towards a pay-on-use, on-demand mix of

transport modes. A Mobility User won’t need long-term vehicle contracts but rather the

means to pay for Mobility Services

5 Don’t forget the used car market; huge potential for car finance providers to innovate and

bring the second hand car buyer into usage whilst also providing contingency against future

used car prices

Shift from Ownership to Usage: Key Takeaways


11

Thank You!

Graeme Banister Consulting Director

Automotive & Transportation

Direct: +44 (0) 207 915 7807

Mobile: +44 (0) 7889 029279

Email: [email protected]

the shift from ownership to usage: future implications · 2019. 12. 16. · ownership to usage:...

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