Every day, shared mobility companies experience growing pains. Even with market potential and new prospects emerging, making it work requires finance and political support. We explored how operators are handling with cost challenges at our MOVE Asia discussion, especially today in these difficult times.
The panel was conducted by Ramu Nair, Head of Business Operations at INVERS, and we were glad to have the following participants share their experience and knowledge:
Beam's CEO, Alan Jiang
Sudhindra Reddy, Zoomcar's COO
GoFun Mobility's CEO, Andrew Tan
Here are three best practises that anyone may apply into their shared mobility operations as a summary and takeaway from the in-depth conversations.
1. Be local, even when expanding globally.
Many shared mobility companies, unsurprisingly, want to expand. While success in one place does not ensure success in another, many operators are ready to take the risk, particularly as the market for innovative mobility services continues to grow. Even yet, there are always difficulties when entering a new market.
Beam, a micromobility company located in Singapore with four locations throughout Asia, is guided by three essential principles: regulatory, economic, and environmental sustainability. These concepts are equally important and serve as the foundation for a successful launch in any place where they operate. Beam hires a local team that is given liberty to run the business in the city in order to carry out these sustainability standards.
“It's like we have four different start-ups,” says Alan Jiang, CEO of Beam. “Mobility is a very local business.” We are laser-focused on what each Asian city need. Every city we visit, we ensure that we have a fully local crew that is familiar with the local culture and rules. More significantly, learning from each team allows us to grow as a business.”
2. Provide customers with more options
Consumers' mobility needs are changing, and shared mobility operators must respond by offering a simple, convenient, and economical mode of transportation. If an automobile is required, typical possibilities include owning a car, renting a car, or leasing a car. These options, however, can be costly and result in the automobile sitting inactive for 95% of the day.
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In India, Zoomcar introduces the SaaS business model to car rentals. Zoomcar's COO, Sudhindra Reddy, has noticed an increase in demand in their car subscription services. “The beauty of car subscriptions is that we remove all of the bells and whistles of a car lease programme and offer a single price point for the use of a car,” he explains. This is a one-of-a-kind service that allows customers to rent an automobile for a short period of time. They are able to save a significant amount of money. OEMs, too, see this market opportunity, and we're currently collaborating with them to develop their own sharing subscription platform.”
A same situation unfolds at GoFun, a Chinese carsharing firm. Andrew Tan, the CEO of GoFun, agrees that more shared automobiles are needed. “We recently created GoFun Connect, a SaaS platform that allows additional automobiles to be shared,” he continues. GoFun connects manufacturers with consumers. It permits young people who want to drive but can't afford to do so to do so for a few months at a time.”
3. Prepare yourself for the electrifying.
CASE is an acronym that stands for connected, autonomous, shared, and electric mobility. While charging infrastructure, battery capacity, and range are all factors in full electric vehicle adoption, savvy mobility operators are moving to EVs sooner rather than later.
Beam already has a 100% electric micromobility fleet, all of which have swappable batteries for easy maintenance. “Right now, the industry is working out how to best switch batteries and function in general,” says Alan Beam, CEO of Beam. Even if users have the option of going to a kiosk to swap batteries, you'll need money to purchase the batteries. It's still something that needs to be worked out.”
The government provides incentives to Zoomcar in order to encourage greater usage of electric automobiles. This is beneficial to Zoomcar and their platform's growth. “Electric vehicles are easier to link to our platform than ICE vehicles, because they typically require aftermarket telematics,” Sudhindra says. EVs also provide us a better understanding of client behaviour.”
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Andrew from GoFun has a good reason to use electric vehicles. “Charging charges are less expensive than refuelling with gasoline,” he explains. Even if you spend a little more for an electric car with a longer range, you are not paying twice as much for twice as much range. In the future, electric vehicles will be the primary mode of transportation for carsharing.”
Thank you again to our panellists for sharing their expertise and experience in the industry with us. We'd also like to express our gratitude to Highways Today for covering this event.
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