Mobility as a Service (MaaS), also known as car sharing or ride sharing, is having a major impact on consumer transportation today and is predicted to grow exponentially over the next decade. Companies like Uber, Lyft and ZipCar, as well as electric vehicles and autonomous vehicles, are widely forecast to change the landscape of mobility as we now know it. Predictions include a compound annual growth rate of 23 percent over the next 12 years (figure 1), and aggregate market capitalization outstripping the current OEM’s market capitalization by almost four to one in less than four years (figure 2).
Figure 1 - Projected Revenue Growth MaaS
What is less talked about, however, is the automotive retailer’s role in the new MaaS environment, and how car dealers can actually capitalize on this trend—both now and in the future. As the software used to facilitate MaaS becomes more of a commodity than an innovation, and current MaaS providers move past the investor finance stage of development, the timing is right for the innovative automotive retailer to utilize MaaS as a new profit center for the dealership.
Figure 2 - MaaS Market Capitalization
What This Means for Dealers
Who better than today’s car dealer to participate—either directly or indirectly—in the car sharing/ride sharing environment, with the lowest cost of acquisition and servicing of the asset (the vehicle), and convenient locations across the entire country (with overhead already paid for, so all incremental net revenue falls directly to the bottom line).
Indeed, insightful store owners can get their feet wet now, and get themselves in the know about processes and relationships in order to take advantage of these new opportunities. Even if autonomous vehicles do one day take over the roads, service and maintenance will still be a vital need, since, while many folks forecast the emergence of self-driving vehicles, I have yet to hear talk of a “self-maintaining” or “self-cleaning” vehicle.
To learn more about MaaS and how auto dealers can profit from this growing area, be sure to attend John Possumato's workshop, Mobility as a Service: A Threat or Greatest Opportunity?, at NADA Show 2018. View more information, plus the full workshop schedule on the NADA Show website.
Still need to register? Visit the NADA Show website and reserve your spot today! NADA Show 2018 takes place March 22-25 in Las Vegas.
