Mubarak Moosa, Director, CEE at Frost & Sullivan had an opportunity to present on future of mobility and its influence on fleet & leasing sector at the Leasing Forum 2018, Warsaw,Poland. We see the new mobility business models & digitalization are set to innovate and disrupt the B2B World.
Top 6 key points:
- Integrated mobility: In both B2C and B2B environments customers are demanding intuitive services; many actors investing significantly to deliver the ‘killer’ proposition & seamless user experience; a new ecosystem of integrated mobility is emerging. Company car leasing is only one of multiple mobility solutions available in the market. Quite a few innovative and flexible mobility solutions are posing fierce competition to fleet leasing industry which should be treated as an opportunity by the industry participants. E.g.: Mobility Mixx from LeasePlan, Moovel by Daimler and Moovit from BMW
- Digitization is changing the way vehicles are financed by making the process faster, safer and user friendly. All financing arms of OEMs working on Fintech, Blockchain and P2P solutions leveraging digital platforms. E.g.: DocuSign, AutoFi
- EV leasing gaining traction in Europe in the recent years, where it is not only about offering lease of an electric car but an integrated solution comprising of battery and charging infrastructure as a part of the package. EV leasing is expected to grow 15.4% in 2018 hitting a sales volume of 142K units in Europe. OEMs will shine as they focus on selling EV lease contracts directly to customers rather than selling outright – an opportunity cost for lease companies. E.g.: Tesla Leasing, BMW (i3), Mercedes Benz (B Class)
- Shared mobility: Our recent corporate mobility survey showed that although company car is still “king” in the short term, the highest levels of future interest amongst businesses were for corporate car sharing and carpooling. E.g.: AlphaCity from Alphabet
- Private leasing: Evolution of private leasing started with OEMs putting their surplus stock to market without disturbing the retail market. Started as a financial lease, it is now offered as a full-service operating lease product. Private lease cars are increasing in demand especially in Europe influenced by factors such as mobility budget, customers opting for cash in lieu for company car etc.
- Data monetization: With access to over 200 data points from a car; leasing companies and car manufacturers now have the ability to create new revenue streams by monetizing the data. Bartering, brokering and business intelligence are the key business models widely used across the industries. Business and pricing models can be customized according to the use case and data type. E.g: Renault Nissan alliance partnered with technology firm The Floow to deliver vehicle generated data to Insurance companies, enabling User Based Insurance premiums