THE AUTOMAKER TRANSFORMATION REPORT: Inside automakers' scramble to keep Uber and Lyft from snatching billions from their pockets
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Auto sales are on a decline while newly established mobility companies such as Uber, Lyft, and Didi Chuxing have added millions of users and become a core part of the transportation ecosystem. Their disruptive nature is sending tremors through the traditional auto industry: 43% of global auto industry execs showed a level of confidence that half of today's car owners ultimately won't want to own a personal car in 2025, according to a 2018 KPMG study.As such, many automakers are turning to mobility services, with a focus on finding ways to tap the massive ride-hailing market. By 2030, Goldman Sachs projects that the global ride-hailing market will be worth a whopping $285 billion, up eightfold from 2017. However, entering the ride-hailing market with their own services to compete directly with established players wouldn't come without challenges for automakers.
We also analyze the ways automakers can establish a stronger position against ride-hailing companies in the long term as the space evolves toward self-driving tech. Finally, we discuss how automakers can approach building out their technical capabilities and ecosystems as they transition toward operating fleets of autonomous vehicles (AVs) for ride-hailing.The companies mentioned in this report include: BMW, Daimler, Didi Chuxing, Ford, General Motors, Lyft, Tesla, Toyota, Uber, Volkswagen, and Waymo.
Here are some of the key takeaways from the report:
- Global auto demand is falling, putting the product-centric models of legacy automakers at risk.
- Potentially lucrative opportunities in ride-hailing for legacy automakers lie in custom leasing, EV sales, maintenance services, data sharing, and telematics software. These initiatives require less capital relative to launching full ride-hailing services, and they can be achieved in the near term.
- Self-driving ride-hailing services pose an even bigger threat to consumer car ownership, but AVs also represent an opportunity for automakers in the longer term.
- Automakers will see a number of revenue-driving channels open up to them in the AV mobility space, each requiring a different degree of time, resource intensity, and innovation.
- In order for automakers to overcome impediments as they transform their businesses, they need to create significant networks in the new auto space through partnerships and tech investments.
In full, the report:
- Discusses the rise of the ride-hailing market and the specific players in the space.
- Details the different avenues for automakers to monetize the growth of the ride-hailing industry, including specific examples of what companies are doing.
- Outlines the self-driving ride-hailing market and the different tech companies occupying the industry.
- Pinpoints different ways automakers generate revenue from autonomous ride-hailing.
- Provides an overview of the various challenges that automakers will encounter in the self-driving car space and how they can overcome them.
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