Commentary
Car Of The Future: Ridesharing And Advertising On-The-Go
- by Chuck Martin , Staff Writer, November 13, 2016
The car of the future may be here sooner than many people think and mobility of the future may look different than expected.
One of the most significant effects of the driverless car of the future will be the different ways that time will be spent in a car along with new revenue streams from in-car advertising, based on a major new study.
The lengthy global report on the car of the future by Citi GPS identified four major auto industry changes between now and 2030. They are:
- The era of on-demand mobility will reach an inflection point with driverless and connected vehicles entering the market over the next four to six years. This will yield business models providing autonomous on-demand ridesharing, first in geofenced zones and eventually beyond.
- Driverless cars will enable new shared-ownership business models, such as subscription services or timeshare approaches.
- The cost of electric vehicles will reach parity with internal combustion vehicles by 2025. The resulting rise in electric vehicle penetration, safer cars and driverless business models is likely to reduce the cost of personal car ownership.
- Connected cars and big data will enable new revenue and efficiency streams throughout the life of the car. The car becomes a central role in the Internet of Everything.
The transformation of vehicles will hardly happen overnight.
There are three stages to autonomous vehicles, according to Citi. It starts with geo-fenced ridesharing, followed by ridesharing everywhere and then automated vehicles being sold to individuals.
The most significant changes coming relate to personal mobility in major cities and surrounding areas.
Citi GPS says this is where on-demand driverless rideshare networks make the most economic sense from a congestion, parking and pollution perspective.
The anticipated changes will begin with driverless rideshare networks in geo-fenced zones.
The unlocking of time spent in the car also introduces new business models, such as specialized cars and revenue from advertising, according to the study.
Projections include new business models for consumers, such as subscription services for autonomous vehicle networks, reduced warranty costs because of over-the-air updates, usage-based insurance and location-based advertising and coupons.
The study also determined that the four states likely to be the most significant for autonomous vehicles are California, New York , Florida and Illinois and the top ranked businesses to be General Motors, Google, Ford and Uber.
The ultimate success of future mobility rests on three pillars, according to Citi. The pillars are:
- Fully autonomous capability and data. This means achieving state-of-the-art capability in sensing mapping, path panning, driver policy, cybersecurity, redundancy and quality. This is where regulatory approvals come in.
- Supply and demand matching. This involves ridesharing, with firms such as Uber and Lyft already having an advantage.
- Fleet service and hardware. For consumers to abandon personal cars and switch to networked mobility, the quality of the vehicles and the servicing of them is critical.
The report does acknowledge the reality of some consumers’ attachment to their cars.
“There is still something gratifying about owning an asset, and there is clear value in having the instant freedom of mobility that comes with having your own car,” the report states. “But who needs to own all of it, or any of it? Driverless cars could unlock car timeshare models where people with comparable schedules could partially own the vehicle — with a dealer in between to ensure proper care by the individual owners. Consumers owning such cars could also lend them to ridesharing networks in exchange for a fee, helping improve the affordability of personally-owned autonomous cars.”
The study notes that a fully autonomous car also unlocks value for consumers by freeing up time normally reserved for driving that can now be used for work or media consumption.
One of the major deciding factors for consumers may be cost.
Citi estimates that fully autonomous cars will be quite a bit more expensive, as in $5,000 to $8,000 more than a car that a person drives.
That may be a high price to pay not to drive.
Chuck Martin is Editor of the AI & IoT Daily at MediaPost and writes the daily Connected Thinking column. He is a NY Times Business bestselling author and his latest book is “Digital Transformation 3.0” (The New Business-to-Consumer Connections of The Internet of Things.) He is CEO of Net Future Institute and a frequent keynote speaker internationally. Follow him on Twitter @chuckmartin and contact him at Chuck@MediaPost.com.
As the person who originally coined the term "Rideshare Advertising" before launching Vugo's Mobility Media™ platform.
This article is exactly correct, it comes nearly 2 years after MediaPost covered Rideshare Advertising for the first time when it covered the launch of Vugo. Read that here: http://www.mediapost.com/publications/article/247732/viewswagen-puts-ads-in-uber-lyft-cars.html
if youre curious about what what the future of media looks like in the automotive industry, and how data-driven services like Vugo are going to add 1.5 Trillion dollars to tr automotive industry (according to McKinsey, reach out to me at James at Govugo.
Thanks James, looks like you are one of the early ones in the coming connected-car-advertising space.
I wonder who will develop an ad blocker for intrusive in-car advertising.....
Likely already in the works, Norman.
"Driverless cars could unlock car timeshare models where people with comparable schedules could partially own the vehicle — with a dealer in between to ensure proper care by the individual owners. Consumers owning such cars could also lend them to ridesharing networks in exchange for a fee, helping improve the affordability of personally-owned autonomous cars.”
Once again, the tech-lemmings can't see past the immediate (gratification) for the big picture.
What world do you live in where you think people are looking for a "community" car? Sharing your car with the family with 2 car seats, juice boxes spilled everywhere, starbuck cups , water bottles, dog hair, and lost socks?? Sure . So with 9-5ers, who gets the car?? kinda reminds me of being a teenager, you had full access to the family truckster, as long as no one else needs it. This is moronic on so many levels. How about insurance? If you want to have a car-for share, you got to have a $1-2,000,000 coverage. What about a Hit-and-run, they find the car at your house and one of your share partners wrecked without telling anyone. You want to share a car and it's not your "time", They are out too late, you needed that car at 10pm and it's now after midnight...............and your kid needs to go to Quick Care. And of course since we're not paying attention to the road anymore, let's bombard everyone with annoying adds for crap we're not interested in. My car is a sanctuary, I control it, to wherever and whenever I want. You want to "Share a ride" take a bus , a cab, or trolley, then you can time your day to make connections so that you can co-op a car. Where has intelligence and common sense retreated to these days? you just had an article where someone highjacked a whole apartment complex in Finland/Sweeden and shut off the heat, because they were "all Connected" Why? HACKERS. You just don't get it. You think it's FREEDOM, but it's electronic slavery. It will create a brand new style of custody and visitation wars.
The scenario of one person causing an issue with another person being blamed is one of the numerous issues mentioned in the report, Mark. As is the security issue, which is regularly identified as a significant issue to be addressed. The study was not necessarily recommending that all this happen, but rather documenting/projecting that it is happening.