SAutomotive Connected Mobility Overview

Fisita World Summit - November 2019

AGENDA

Copyright© Strategy Analytics, Inc. 2

OUR APPROACHES AT A GLANCE

• Car Sharing• Ride Hailing• Micromobility• Consumer Behavior

Mobility Services

Outlook

October 2019

AUTOMOTIVE CONNECTED MOBILITYCARSHARING – REGIONAL OVERVIEW

AsiaLargest market in the world, has over 208K vehiclesLargest operator is GoFun in ChinaChina is the largest market in the region

Eastern EuropeNearly 37K vehiclesMost growth is through Russia, Russia High growth potential, largest op is Delimobil in Russia

North AmericaApprox. 27K vehicles in the regionLargest operators are Zipcar & BMW/Daimler (Share Now)Still growth potential in markets without car sharing

Western EuropeLargest operator is BMW/Daimler JV with over 14K vehiclesFirst region to have car sharingSignificant growth in some countries is possible

AustraliaLeast current potential growth out of the five major regionsFirst free-floating service in region just launchedJust over 5,000 vehicles in region

South AmericaApprox. 1,800 cars in the regionRide hailing has dominated the region

AfricaCurrently only in

two countriesApprox. 60+

vehiclesNewest planned

entrant is VW with its Move

brand in RwandaLow growth

potentail

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•South America has the most growth potential, at a forecasted CAGR of 13% over the next 10 years, but the size of the current market is very small. Eastern Europe is the next fastest growing, at a 10-year CAGR of 12.6%, but is much larger, making up 11.07% of the global car sharing fleet compared with 0.53% of the global car sharing fleet for South America.

•Western Europe seeing slightly higher growth expectations due to higher OEM service launches, ex: VW in Berlin, PSA (Free2Move) & Renault (Moov’in) in Paris

Fleet Size Growth Expectations

•New service ideas have been launched recently, ex: Zipcar’s Commuter Package (monthly subscription for use of car-share vehicles), Communauto’s FLEX program (30-minute usage, no registration required)

•Free-floating services have seen higher membership growth rates, but in developed markets some F-F services have failed (e.g. car2go in U.S. market)

•Emerging markets like Brazil and Morocco struggle with license confirmation – hurts membership growth

Operators Searching for Membership Growth

•Some carsharing operators are profitable, unlike ride hailing and two-wheel sharing, ex: Cambio, Communauto, Park24 (corporate customer growth, membership growth, parking dominance in Japan), etc. – many Asian operators are on road to profit

•Carsharing is the oldest mobility service – operators have had time to perfect business models

Some Operators are Making a Profit

AUTOMOTIVE CONNECTED MOBILITYCARSHARING – FORECAST OVERVIEW

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0.01%

49.62%

2.52%8.36%

14.41%

0.02%

0.48%

24.58%

Percentage of Carsharing Market Revenue by Region

AFRICA ASIA AUSTRALASIA EASTERN EUROPE

NORTH AMERICA OTHER SOUTH AMERICA WESTERN EUROPE

Asia

Western Europe

North America

Eastern Europe Australasia

South America

Other

Regions Driving Global Growth

• Asia and Eastern Europe are expected to drive international growth over the next 5-10 years

• Asia has experienced some pullback, but the overall growth trend is still positive.

• Many major Asian and Eastern European countries are promoting the use of carsharing through regulations

• Launches in Eastern Europe have been the most frequent around the world, also some of the largest

CAR SHARING MARKETSREGIONAL OVERVIEW

Africa

OEM CAR SHARING EFFORTSMARKET CHANGES

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BMW shut down ReachNow in the U.S. as a result of the merger between BMW’s and Daimler’s mobility service groups.

Daimler shut down car2go operations entirely in China. The company has merged car2go with BMW’s DriveNow in the new Your Now joint venture.

GM has reduced its Maven operations, shut down its Book by Cadillac subscription service (a 2.0 version is in development), and has moved its Cruise Automation on-demand, autonomous ride-hailing launch timeline to an indefinite future date.

Share Now – Part of Your Now

Your Now’s new car sharing service is called Share Now. The company has partnered with Vulog for the back end, having ended its relationship with RideCell in the U.S. market. At this time Your Nowis transitioning its car2go brand under the Share Now brand in the U.S. market.

Maven – Challenging Road Ahead

GM’s Maven car sharing organization has reduced the number of cities it currently operates in, from 17 to 9. GM’s Maven Gig short-term rental service for ride-hail drivers continues to operate.

Volkswagen has launched its mobility services brand, Volkswagen “We.” Under this umbrella the company’s car sharing service is WeShare.

WeShare – Major Launch in Europe

Volkswagen’s We Share service launched with 1,500 e-Golf vehicles in Berlin. The OEM plans to add 500 e-Up! And ID.3 models to its fleet in 2020. Plans to expand to Hambug and then outside Germany to the Czech Republic (Prague) , via Skoda brand.

AUTOMOTIVE CONNECTED MOBILITYRIDE HAILING – MAJOR OPERATORS AND MARKET SIZE

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# of Markets (Countries)

# of Markets Dominated

Total Active Drivers, Est.

Gross Bookings (US$), Est.

Gross Revenue (US$), Est.

Revenue MKT. Share (World)

Didi Chuxing

Uber

Lyft

Ola

Bolt (Taxify)

Careem (Uber)Go-Jek

Yandex.Taxi GrabCabify & Easy Taxi

OTHER

Didi Chuxing Uber Lyft

Ola Bolt (Taxify) Careem (Uber)

Go-Jek Yandex.Taxi Grab

Cabify & Easy Taxi OTHER

Global Ride Hailing Forecast – Top-Line Stats

Gross bookings of $112B in 2018 $200B by 2023

24M + active drivers on the road, over half in China

Over one-billion active users worldwide

CONNECTED MOBILITYBIKE SHARING VS. SCOOTER SHARING

Dockless Bike Sharing• Sees an average of between 0.75 – 2 rides per day per bike – much higher costs than docked sharing• Electric bikes see higher usage, on average, between 1-2 trips per day

Docked Bike Sharing• Less usage than dockless sharing, seeing averages of between 0.4 – 1.5 trips per day per bike• Much less costly than dockless systems – no need for rebalancing, longer bike lifespans

Dockless Scooter Sharing• Has by-far the highest usage rate in micro-mobility, sees 5-9 trips per day per scooter on average• Also has the highest costs – charging, rebalancing, scooter replacement, etc.

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CONNECTED MOBILITYTWO-WHEEL FORECAST OVERVIEW

Markets Included• Over 150 cities in preliminary

forecast between North America, Australia and Western Europe

• Largest markets are on the West Coast of the US and in large Western European cities such as Paris

Market Size• Market includes a total fleet size

of over 130,000 scooters and bikes

• Estimating the market size at just under $400M (USD) on an annual basis

Regulatory Challenges• Issues with micro-mobility are

the most visible out of all mobility services – cluttered sidewalks, large amount of injuries

• Electric scooters already are banned in numerous markets

• Some operators have taken a guerilla marketing approach

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10Confidential and Proprietary

CONNECTED MOBILITY EXPERIENCES

• The Shared Experience

• Mobility Use Cases• Pain Points• Competitive

Options• Perceptions

Research on Consumer Connected Mobility Experiences

Use Cases

Large Objects

Shopping

Pets to the Vet

Selection Criteria

Perceived Safety

App Use

1st Mile/ Last Mile

Factors

Economics

Availability

Convenience

Simplicity

Comfortable

Clean

Billing

Seattle Milton Keynes ShenzhenRegular commute or daily trip Car / Public Transport Car Pub. Transp. / Ride-Hail / Car

Grocery store for 5 small items Walk Walk Walk

Meet friends at night Car / Ride-Hailing Car / Ride-Hailing Ride-Hailing

Transport large items Car / Car-sharing Car / Car-sharing Car

Transport Kids to activity Car Car Car / Ride-Hailing

Weekend trip Car Car Car / Public Transport

Go to/from airport Public Transport Pub. Transp. / Ride-Hailing Pub. Transp. / Ride-Hailing

Outdoor activity with gear Car Car Car

Muddy activity Car Car Ride-Hailing

Work day interruption Car Car Ride-Hailing

Local business trip (alone) Car / Public Transport Car / Public Transport Pub. Transp. / Ride-Hailing

Local business trip (colleagues) Car Car Car / Ride-HailingRelated Report: Millennials’ Choice of Car or Transit Mode is Driven by Cost and Usability

EXPLORING TRANSPORT MODALITIES IN MILLENNIAL URBANITES

• Extent to which the modality is available when and where the user needs it

• Simplicity of Inter-Connection –between different modalities and within the same modality

Availability

“I don’t use car-sharing services because I can pick it up outside my home but often where I want to drop the car off is outside of the coverage area”

“I could take a bus and a train then get an Uber, but it seems too much hassle, so I generally just drive”

• Public transport or ride-sharing service fees vs costs of ownership for personal vehicle

• Parking costs at destination and congestion charging impact choice on a per-trip basis

Cost

“Compared to the cost of gas, train tickets or an Uber are more expensive in most situations”

“If it costs $14 to park somewhere, taking an Uber is a no-brainer”

• Difference in journey duration• Total journey time factoring in

congestion and parking• Level of urgency

Time

“If the journey was going to be half an hour longer by public transport, I would take an Uber. If it was five minutes difference, I would take the train”

“You might get stuck in traffic if you’re taking a DiDi to the airport. The tube is most reliable; you know that you won’t miss your flight”

• First-mile and last-mile convenience

• Comfort factors: Vehicle condition, attention from branding, personal safety etc.

Experience

“If it’s raining or late at night, I’ll take an Uber or Lyft even though I could take a bus. If I’m tired I just want to be dropped at my door”

“I don’t use Car2Go. The cars are always filthy inside.”

“I don’t want to drive round the city with an advert for the company on the side of the car”

EXPLORING TRANSPORT MODALITIES IN MILLENNIAL URBANITES

LEVELS OF MOBILITY AS A SERVICE

• Level 0 = no integration. Separate services are provided for different means of transport.• Level 1 = integration of information. Travel information is provided through (multi-modal) travel planners, which may or may not include information on routes and costs. Level 1 facilitates the choice regarding the time of day, the route, or the mode of transport to be used.• Level 2 = integration of finding, booking, and payment. MaaS facilitates the finding, booking, and payment of individual trips. U sers can find, book, and pay for their trip at a single service point (e.g., through an app with a pre-registered credit card).• Level 3 = integration of transport services into passes and bundles. MaaS does not just cover individual travel movements; the service also meets the full daily mobility needs of individuals and families by offering different means of transport through bundles and/or passes. Offers users an alternative covering all their daily mobility requirements. Also constitutes an alternative for individual car ownership.• Level 4 = integration of societal goals. MaaS extends beyond liaising between the demand for and supply of mobility. Supply and demand are now combined with social goals such as reducing the use of cars or promoting liveability in the cities.

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MAAS EXAMPLES

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COMPETITIVE LANDSCAPE

Car Makers

Rental Car Cos.Startups

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AUTOMAKER VEHICLE SUBSCRIPTION PROGRAMS

Automakers are launchingsubscription programs, similar to leases without mileage limits that also bundle insurance.

• These programs typically offer a selection of vehicles for a monthly fee.

• Premium brands (e.g. Volvo, Porsche, BMW) have been more active in launching these programs.

• U.S. automaker Ford had been active, but sold its Canvas program to Fair in Sep. 2019.

Care by Volvo

Porsche Passport

Access by BMW

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AUTOMAKER SUBSCRIPTION CAR USAGE PROGRAMS

Automaker Program Name DetailsAudi Audi Select USD $995 per month for Core Collection tier, includes S3, S4, Q5 SUV and TT; USD $1,395 per month for Premiere

Collection tier, included more Audi models and 2 car swaps per month. Includes insurance, maintenance, and roadside assistance, with unlimited mileage. Fuel is the only out of pocket expense.

BMW Access USD $1,099 per month for the entry level service, including 5 vehicles; USD $1399 per month for the Legend service, including four vehicles; USD $2,699 per month for the BMW M service which includes five vehicles. All have unlimited car swaps.

Ford Canvas (Sold to Fair in Sept. 2019) Offered 1 – 12 month subscription terms. Pricing started at USD $379 per month (USD $50 subscription plus USD $329 for vehicle) to USD $660. Included insurance. Sold in September of 2019 to Fair.

GM Book by Cadillac U.S. operations closed in 2018 (still operates in Munich and Zurich). Before shutting down it required a USD $500 enrollment fee and USD $1,800 per month for the service, which included all fuel, maintenance, and insurance (USD $1,000 deductible). No terms or minimum subscription period and up to 18 swaps per year.

JLR Carpe USD $1,200 for E-Pace SUV or up to USD $2,200 per month for Range Rover Sport HSE. Insurance, tax, cleaning, and servicing all included. No deposit necessary and 2 swaps per year. Available in the UK.

Mercedes-Benz Mercedes-Benz Collection USD $495 application fee. USD $1,595 per month for Reserve Tier which includes four models; $2,995 per month for Premier Tier, which includes four models. Offers concierge service for last minute swap requests. Includes cleaning, fuel and insurance upon delivery.

Porsche Passport USD $2,000 per month provides access to 9 Porsche models. USD $3,000 per month provides access to 22 Porsche models. Vehicle taxes, insurance, registration, maintenance, and detailing are covered by this fee. Fuel is separate. Uses Clutch Technologies’ platform as back-end.

Volvo Care USD $700-800 per month to rent a Volvo (7 models available). Price includes maintenance, insurance, and cleaning. No terms or minimum subscription period. USD $500 deposit which is applied to first months fee. Only 1 swap every 12 months.

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THIRD-PARTY VEHICLE SUBSCRIPTION PROGRAMS

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Beyond automakers, startups in the U.S., Europe, India and elsewhere are launching in this emerging market segment.

These new business models are as-yet unproven. Prices are constantly changing with most services increasing their rates over the last year.

Third-party services face competition from automakers but have the advantage of being able to offer customers a range of makes and models.

Programs are tiered, offering mid-range and premium vehicles. Some focus on one tier specifically (e.g. Revolve).

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THIRD-PARTY VEHICLE SUBSCRIPTION PROGRAMS

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Company Details PricingFreshCar (formerly Carma)

Monthly vehicle subscription program. Currently working with Ford Mobility and Honda (part of TechStars). Includes insurance and maintenance. Does not include fuel. Currently offers Honda, Hyundai, Kia, Dodge, and Ford models. Mobile app for selecting available cars. Also has a B2B offerings and strategic consulting for dealerships, insurance companies, auto finance firms.

3 Pricing Tiers: 500 miles: USD $499/month (+40 cents per mile beyond the limit)800 miles: USD $549/month (+40 cents per mile beyond the limit)1,200 miles: USD $599month (+40 cents per mile beyond the limit)

Clutch Technologies Provides subscription platform for Porsche Passport, Mercedes-Benz Collection, and Access by BMW. Acquired by Cox Automotive.

Pricing determined by program partners. Ex: Tom Masano Auto Group was the first dealer to use Clutch Subscription for used vehicle platform, with the lowest price category set at USD $300 to access Honda Civics, Toyota Camrys and Ford F-150s. The highest category goes to USD $700+ for BMW 6 series and Porsche 911.

DreamShare High-end/luxury vehicle fractional ownership and rental model. Somewhat resembles a time share.

3 Pricing Tiers:Titanium: USD $18K to join, USD $20K in rental creditElite: USD $28K to join, USD $35K in rental creditDiamond: USD $49K to join, USD $70K in rental credit

Fair Provides monthly vehicle leasing service. Recently acquired Ford’s Canvasand Uber’s Xchange Leasing. Users can pick from 40 makes and models. Requires a “Start Payment” and has three-day/100 mile return policy.

Pricing varies widely depending on vehicle. Vary between USD $180 per month for the Nissan Versa Note S, all the way up to USD $1,210 for the Corvette Z06 3LZ.

Hertz My Car Pilot program in Austin, TX and Atlanta, GA. Offers unlimited mileage but there is no concierge service.

Starting at USD $999 for full sedans and extends up to USD $1,399 for larger SUVs, full-size trucks, and luxury sedans.

Revolve High-end/luxury car subscription with concierge service (pickup and delivery).

USD $1,500 to $2,600 per month.

Switch by Revv Car subscription service in select services in India. USD $250-750 per month

Wagonex Monthly vehicle subscription program based in the UK. USD $460– 900 per month (includes VAT), depending on vehicle.

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B2C/B2B CAR CARE SERVICES

An ecosystem of app-enabled, on-demand vehicle service providers is emerging in response to changing consumer and business needs.• Most offer services to consumers

and fleet customers.• The majority are regional startups

with limited geographic coverage.• This will be a fragmented,

competitive market for many years.• Opportunity is mainly in the fleet

space rather than the B2C market.

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Source: Washos Source: Yoshi

B2C/B2B CAR CARE SERVICES

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Car Care Companies Overview Link

Booster App-enabled on-demand refueling for consumers and fleets. https://www.trybooster.com/

Filld App-enabled on-demand refueling for consumers. https://www.filld.com/

Mobile Fuel Subscription-based, mobile fuel delivery. Also performs basic safety inspection. For consumers or fleets.

https://www.mobilefuel.me/

Neighborhood Fuel App-enabled on-demand refueling for consumers and fleets. https://neighborhoodfuel.com/

RideKleen Mobile car wash company that provides cleaning, detailing, logistics and light maintenance for fleets.

http://www.ridekleen.com/

Spiffy App-enabled on-demand car wash and maintenance service providing services like oil changes, detailing, air filter replacement, and pet hair removal.

https://www.getspiffy.com/

Washos App-enabled, on-demand mobile car wash and detaling service. Located in southern California.

https://www.washos.com/

Yoshi App-enabled on-demand fuel, car washes, oil changes, and related maintenance services for fleets and consumers.

http://www.startyoshi.com/

AUTOMAKER MOBILITY SERVICE OFFERINGS

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Gradually, car makers across the globe have begun focusing on mobility programs. These programs are a response to changing customer demands. This has forced many brands to rethink their business lines and partnerships. Mobility has become—and will remain– a huge focus for automakers going forward, with some automakers starting robust corporate strategies directly aimed at capturing a piece of this burgeoning market.

Source: General Motors Media Source: Sunfleet Media

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AUTOMAKER MOBILITY SERVICES SUMMARY

• Automakers provide the cars for the fleet, but they need two other things: the AV technology and a service provider.• These two components are both available through partnerships, acquisitions or in-house R&D.

The Race to AV Ride Hailing is On

• Only Ford’s Canvas service provided non-luxury vehicle subscriptions.• Other automakers should be getting in on the service soon (FCA’s Jeep programs).

Where are the Non-Luxury Car Subscriptions?

• While most automakers have partnered with one ride hailing service, others like Daimler, Toyota & General Motors have been backing two or more.• These partnerships will have a huge impact on who supplies the fleet for autonomous vehicles.

Automakers Choosing Sides in the Ride Hailing Market

• Fleet management will become a huge need once driver’s are removed from cars.• Understanding this starts with running your own fleet, so many OEMs are investing in companies for data collection on fleet management.

Everyone is Getting in on Car Sharing or Bus-Based Car Pooling, Why?

• Automakers are investing and acquiring more companies than ever before.• The auto market is changing and the mobility service space is emerging; car makers need to find new ways to make money.• Expect further increases in the amount of partnerships, pooled investments, and mega-deals by OEMs looking to build economies of scale and save on in-

house R&D.

The New Automotive Silicon Valley

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