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CASE in point: Shared mobility

Corporate News -

By Jack van Reisen, Executive Director Mobility Sector at NIBC

To live is to move. The concept of mobility has evolved enormously over the years and continues to change rapidly. Mobility is increasing across the world, both in developed and emerging countries, as people live longer and data plays an ever more integral part in our lives.

This is the third blog in our series about four key trends in mobility: Connected, Autonomous, Shared and Electric (CASE). In this blog:

 

Mobility as a Service

The sharing economy is booming in multiple sectors, with an increasing shift from ownership to use. From cloud software and streaming services to machinery, bicycles and cars, countless products that we used to buy to own are now seen as a service.

This is definitely true for mobility. In fact, there’s already a term and an acronym for it: Mobility as a Service or MaaS. And this often comes with a sharing aspect: think of car-pooling services such as Greenwheels, Snappcar or Car2Go, or bike concepts like Swapfiets.

What does this mean for businesses? Will they face tough times as consumption declines? Or do they need to invest in new ways for customers to use services? Powered by new technologies, data and a cultural shift, this trend might present a sizeable opportunity for mobility companies.

 

Convenience, flexibility, sustainability

For users, key benefits of shared mobility services are the convenience, ease and flexibility. Take Swapfiets, which has proved a smash hit among Dutch students. For a small monthly fee, they get use of a bike, and - crucially – access to a repair service.  

When it comes to four-wheeled transport, sharing also has a strong sustainability element. After all, it’s far more sustainable to share a car than clutter the roads with multiple private cars, most of them standing idle over 90% of the time.

Client relationships

The shift to mobility as a service has significant implications for companies’ relationships with their customers. Traditionally, car companies have produced and sold the vehicle, and that was it. The relationship pretty much ended when the new car was driven away. But a company that rents out a fleet of assets gains an ongoing, long-term client relationship that has much more value.

At NIBC we stimulate our clients to think in this long-term way. For example, we have developed structuring products for companies to build a fleet of cars, bikes and e-bikes to share.

 

Diversified funding

The shared mobility sector is developing at different speeds in different locations. In urban areas, things are going fast – helped by factors such as the infrastructure and the high price of parking for private cars in cities like Amsterdam. In rural areas, things are moving more slowly.

Amassing fleets of vehicles is a capital-intensive business, so diversified financing is a key requirement for growth. That can range from bank funding to institutional investment and securitisation. We’re also seeing rapid consolidation in the sector, with plenty of M&A activity.

The shared mobility market is moving fast. NIBC has in-depth knowledge of the mobility industry and experience in funding businesses with tailor-made solutions to accommodate their future growth. Want to finance your company to get ahead? Get in touch.

 


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