1. What is CaaS all about?
It’s an on-demand subscription model that would make buying/leasing obsolete. The industry has begun to explore the concept of the Car as a Service (CaaS) model as an alternative to the existing buying/leasing model, accessing transportation on-demand, without the responsibilities and costs associated with ownership. Subscription to a car does also require a long-term financial commitment like paying rent.
The advantages could include a service component, concierge services and no ownership responsibilities. The Car as a Service (CaaS) model allows for a greater number of consumers to have certain luxuries of mobility with the flexibility of a monthly subscription. However, there may be some disadvantages as convenience and flexibility could come with a large price tag.
Also given how quickly technology is evolving, obsolescence risks for the car companies would be a facture. As newer versions and model designs change and become available to consumers, there may not be a market for the older versions to keep running.
2. The rise of micro-mobility.
The talk here is about electric scooters (e-scooters), and electric bicycles (e-bikes) and how that fits with the CaaS model above. Micro-mobility has an advantage in that it offers a relatively low-cost and convenient form of transportation in high density urban centres.
Automakers are looking closely to include these modes of transport in alleviating urban congestion and pollution to create an integrated mobility solution that merge cars, public transit, and micro-mobility. Automotive companies must find innovative ways to keep pace with the challenges of micro-mobility and develop future-proof, integrated mobility solutions alongside the products they offer.
3. More in-car technology.
Vehicles are now more than ever tied to technology. The rapid evolution of in-car technology and connectivity now means automakers will also be subject to stricter digital regulations and privacy concerns. Navigating all that red tape while maintaining profit margins will be a huge challenge.
Digital regulations require increased investment in cybersecurity and data protection-compliant technologies. Companies that do not take this path will face regulatory difficulties and could lose out on a sustainable, electrified future in the mobility industry. However, consumer demand is nowhere near the regulators goals, everyone is waiting to see who catches on first.
For the city motorist the regulators are increasingly using local rules, regulations, restrictions and financial incentives to police, so called, greener mobility. They do this with things like zoning laws, traffic restrictions, and low-emission zones. These are just some of the regulatory tools being employed to hammer down on the public for using older and non-compliant vehicles.
August 2024
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