The Future of Cars – Beyond Mobility

Not a day goes by that we don’t hear about predictions about what cars will look like in the future. Recently, Bob Lutz’s Kiss the good times goodbye has intensified the discussions about the future of cars. Many have rallied behind his vision based on the 20th century conversion of the horse-carriage to the car analogy. Others like the Carlos Ghosn, opposed this vision by saying that ride-sharing and car-sharing will add to the existing market, and not kill it. In case you haven’t caught up these two opposing views, I summarize them below.

  • Bob Lutz – The end of car ownership – In his apocalyptic vision, Lutz states that “everyone will have 5 years to get their car off the road or sell it for scrap”. Accordingly to him, over the next 20 years, companies like Uber, Lyft, FedEx, UPS and others will manage large fleets of cars that we will use to move from point A to point B. Since these cars will be autonomous they will all be moving at the same speed, Lutz believes that this will lead to the demise of the german car manufacturers, as performance will no longer be valued. Cars will come in similar sizes and with different trim levels. They will all look the same as air resistance optimization will condition design. In the end, only OEMs that can evolve to fleet managers will survive, and no one will own cars.
  • Carlos Ghosn – Car ownership is here to say – soon after Lutz’s article was published, Carlos Ghosn during an interview at Bloomberg’s The Year Ahead conference in New York made a completely different prediction. Accordingly to Ghosn, “The traditional business of building cars and selling cars and owning cars is going to continue” because “the first thing people aspire to is an autonomous way of transportation.” Per Ghosn “demand in developed markets like the U.S., Europe and Japan is stabilizing, but rates of ownership still have room to rise in markets including China and India.” Ghosn perspective is that cars will evolve and adapt to new realities but the desire of people for individual freedom is still there.

Good sense states that the truth lies somewhere in the middle. In this case we believe the truth lies elsewhere. The reason for that is simple. Once a car becomes connected it evolves from a mobility asset towards a mobile service delivery platform. Not sure what we mean? Check the examples below:

  • why should Google Maps have a dedicated fleets to update their street views?
  • why should we only charge EVs on charging points?
  • why should we be mere spectators of car driving racing, expeditions, and adventures?

At RevdApp we believe that connected cars open a brand new market. A market that goes well beyond mobility. The value of this market is yet to soon to calculate. However, we risk to say that will dwarf the value of mobility (on the way to be commoditized). As such, we believe that current car manufacturers will continue to exist. However they must offer new ways for their customers to monetize their cars.

It was to offer a way to create, manage and monetize connected car services that we created RevdApp; a Car-as-a-Service platform. RevdApp brings together those who own cars, with those who need services from cars, or have services to sell, in a secure, private, transparent and fun way. Our tagline is: Motoring World Connected®.

In the next few months we will initiate trials of our first service. You can read more about it here. If you would like to know more about RevdApp, please feel free to connect with here. It will be my pleasure to personally invite you onboard.