Which business model for new mobility solutions?

A free service for users but not at a loss? Public transport experts will answer: impossible! Yet some people try it. When the content finances the container, there is a new way of looking at the future of new mobility solutions.

Can we finance the container with content? This is a real question that arises when we look at the economy of new mobility solutions.

New mobility is probably the most exciting aspect of the automotive and transport industry which is in transformation. On the other hand, if these two traditional sectors have economic models that seem to be set in stone, this is far from being the case for new mobilities.

The new mobility sector offers this particularity of presenting a very dynamic face: new uses, start-ups, surge of new solutions in urban centers, fundraising. Unfortunately, this dynamism also comes with numerous failures: actors who do not go beyond the first year, consolidation phenomena etc …

RIP for COUP, CITYSCOOT’s rival who left Paris market… just before the transport strikes…

Let’s remember the number of free floating bicycle operators, who have almost all deserted the markets of major European cities in the face of the astronomical cost of maintaining fleets of bicycles.

We can also mention Poolus, this Korean carpool application which is still on the verge of bankruptcy, after raising $ 18 million in funds and making 3.7 million trips. (source Koreantime.CO.KR)

The question of the business model has become fundamental if the sector wants to impose itself and really disrupt the game of traditional players.

We offer here 3 examples of business models that are of interest:

The first is very special, but it is still a curiosity. UBER makes its race free by promoting the PNL rap group. It was in April 2019 for the launch of the group’s latest Opus. Thus, a PNL option, available on the UBER booking application, made it possible to book a free race on the condition that you have listened to the latest PNL album, which was just released in stores … actually on the online platforms. An event, captive and hyper-targeted consumers, data collection: this is enough to balance the economic equation.

Our second example is precisely the anti Uber! At least, this is what Circuit claims, a new transport solution founded by two consultants and accelerated by BMW Mini in the United States. This solution, implemented in concert with American cities (San Diego), is composed as follows: a free service for users, 100% electric transport, an on-demand transport, on board salaried drivers, all funded initially by advertising revenue from on-board advertising panels. Focused on micro transit, it is relevant in a segment on which the other modes of transport are not positioned or are less efficient: the short distances of about 3 kilometers.

The last actor Wonka is Korean and it also uses on board advertising to finance the trips of individuals. Wonka does not have its own fleet but relies on the fleets of other rental companies, therefore they have no fixed costs. They propose an optimization tool for other rental companies and a free individual mobility tool for individuals.