NEW MOBILITY TRENDS

An overview – January 2016

JYOT CHADHA, ZAINAB KAKAL, ROSELIN DEY

A product of WRI Ross Center for Sustainable Cities WHATWHAT ARE ARE THE THE TRENDS TRENDS IN IN NEW NEW MOBILITY MOBILITY VENTURES VENTURES IN ? IN INDIA?

Shared Mobility Ride-sourcing Commuter Product Connected is creating new Platforms Experience Innovation Mobility markets are disrupting is driving new is changing is optimizing • Ride Share / Car Pool informal markets human behavior systems and • Vehicle Share • Car • Driver Training • Vehicle Design processes • Park Share • • Apps • E-Mobility • Fleet Management • Van/Bus • Easy Payments and Vehicle Tracking • Connected Cars / IOT

market potential | stakeholder analysis | model | barriers| enablers| impact analysis TREND 1 – SHARED MOBILITY Shared Mobility is creating new markets.

Ride Share Car Share Park Share

P2P P2P B2C P2P B2C

The global B2C space is growing with entry Park Sharing is in early stages in India. Ride Sharing is evolving but continues by Hertz, Enterprise Rent-A-Car, Avis, While there are some B2C models to have low ridership. Global Daimler, BMW and U-Haul. This market is aggregating parking spaces and offering on companies BlaBlaCar and Tripda have still nascent in India. However, the self drive demand valet, there are currently no P2P entered India. car rental place is an upcoming one. models. Indian company TREND 2 - RIDESOURCING Ride-sourcing Platforms are disrupting informal markets. Car / Taxi Auto Rickshaw Bus

P2P B2C Auto rickshaw Booking (P2P) B2C Taxi Booking Taxi Rental Car Rental

Though mired in regulatory issues, P2P models are Auto Rickshaw aggregation is still Bus aggregation is an upcoming well developed in India. bought in early stages in India but is space which has attracted the TaxiForSure for $200 million in a cash and stock gaining scale via growing startups attention of entrepreneurs and deal— the second-biggest ever in India’s fledgling and inclusion of rickshaws on the investors alike. startup world in 2014. Ola and platforms. Indian company TREND 3 – COMMUTER EXPERIENCE Commuter Experience is driving new businesses.

Driver Training Transit Apps Easy Payments

IPT providers like Ola Driving Schools Driving Programmes Trip Planning & Aggregator of Traffic Cabs, Uber are at the Schedules Aggregators forefront with offering commuters to pay through mobile wallets. Banks are also joining hands with PPP projects to provide payment cards, which can also function as debit cards. However, no startups have Automotive companies like Maruti, Toyota etc. Transit Apps are growing at an phenomenal pace emerged in this area to have their own driving schools. In PPP models globally and in India. With open data, smartphone really facilitate with the government, these offer most of the penetration, and technological advancement, this seamless payments. driver training in the country. area will see a lot of activity. Indian company TREND 4 – PRODUCT INNOVATION Production Innovation is changing human behaviour.

Vehicle Design E-Mobility

With new design and materials being used in bicycles, helmets, cars and new Conversion Kits 2-wheelers 2/3/4 wheelers technology like autonomous cars, self parking etc. being integrated in cars, this space will grow slowly but surely.

Though there are no Indian startups working in vehicle and accessory design in India yet, with the Government’s focus on smart cities and road safety, one should see growth in this space. It is estimated that if India's electric vehicle market takes off, INR 40,000 crore worth of fuel will be saved. The Government’s Mission Plan 2020 envisages demand incentive scheme for faster adoption of Electric Vehicles which makes this space worth looking out for. Indian company TREND 5 – CONNECTED MOBILITY Connected Mobility is optimising systems and processes.

Fleet Management & Connected Cars / IOT Vehicle Tracking B2B B2C

Fleet Management is one of biggest The government’s focus on smart cities opportunities thanks to policy and private sector engagement like initiatives by central and local Mahindra collaborating Vodafone, to government and demands for create M2M-enabled e2o electric car is changing the landscape of IOT. There improved security in public . Indian company This space is, however, still evolving. are very few startups in this space. HOW ARE THESE TRENDS EVOLVING IN INDIA?

Easy Park Driver Fleet Management Auto rickshaw Payments Share Training & Vehicle Tracking aggregators Idea Growth stage stage Vehicle Connected Cars/ Car Ride Transit Bus Car / Taxi Design IOT Share Share Apps aggregators aggregators

Indian mobility businesses raised $365 million in 2014. 60% Challenges and barriers include was raised by taxi aggregators. Regulation and policy issues Lack of open data Only a miniscule number of mobility businesses in other segments have been able to raise funding. High cost of technology and research Access to seed funding