The World's Top 4 Ride-Hailing Companies Are Worth More Than $166 Billion
Shared Mobility Poised to Disrupt Multitrillion-Dollar Auto Industry
BOSTON, Aug. 8, 2019 /PRNewswire/ -- The rise of shared mobility services like Uber and Lyft is threatening to disrupt a multitrillion-dollar industry. Self-driving cars, zero-emission vehicles, connectivity, and innovative materials are defining the future of mobility. To guide innovation and investment in the mobility space, the team at Lux Research, a leading provider of tech-enabled research and advisory services for technology innovation, took a deep dive into the business models and themes disrupting this age-old industry in the new report, "Sharing is Scaring: New Business Models Disrupting Mobility."
"Our reliance on owning a car has created one of the largest industries in the world. Today, however, our relationship with the automobile is changing as new business models aim to replace conventional car ownership with a combination of ride-hailing and vehicle-sharing accessed through mobile apps – a trend we call shared mobility," said Chris Robinson, Senior Analyst and lead author of the report.
"Recently, two key changes are emerging in this space. First, shared mobility companies are pursuing integration of many services and transportation modes, such as bikes and scooters, into one platform rather than developing one specific app or business model. Second, the industry's growth is attracting a diverse array of competitors, including automakers, transportation network companies, and tech companies." Robinson noted that the shift from pursuing a single business model, which characterizes Shared Mobility 1.0, to Shared Mobility 2.0 is providing opportunities for new competitors.
Transportation network companies like Lyft and Uber are no longer startups. The top four ride-hailing companies in the world – Didi, Uber, Lyft, and Grab – have a combined valuation of $166 billion. "These companies," Robinson continued, "are no longer focused on expanding into new markets with ride-hailing services; most markets are already saturated with such options. Instead, multimodality – providing access to different modes of transport, such as bikes and cars, on their platforms – is now a key focus."
The new Lux report presents several case studies to highlight how different sectors are creating strategies to develop shared mobility platforms, finding that no single industry is best-positioned to own this future. It also finds that autonomy and integration of public transport into shared mobility platforms are two key differentiators in the future of shared mobility, which will ultimately help drive these new business models to profitability.
The report deems autonomous vehicles the most important technical development shaping the future of shared mobility. "Despite the disruptive promises of shared mobility, no companies have been able to maintain profitability," notes Robinson. "Autonomous vehicles promise to drastically alter the financials of ride-hailing." Navigating this change will be crucial for success, especially as shared mobility companies' competitors have more experience in fleet management.
Lux's "Sharing is Scaring: New Business Models Disrupting Mobility" report delves deeper into these strategies and case studies, providing advantages companies can leverage and challenges they must overcome.
For more information about how your organization needs to adapt to the disruption of the mobility industry, download the executive summary.
About Lux Research
Lux Research is a leading provider of tech-enabled research and advisory services, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux empowers clients to make more informed decisions today to ensure future success.
For more information, visit www.luxresearchinc.com, read our blog, connect on LinkedIn, or follow @LuxResearch.
Contact Information:
Jess Bonner
[email protected]
(617) 502-5300
SOURCE Lux Research
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