How are startups shaping the future of road mobility? ROAD MOBILITY STARTUPS ANALYSIS 2018

1 1 FOREWORD

Startups can further enhance the mobility offer

Tesla, , Blablacar. Most in doing for passenger , Europeans would acknowledge to the point of being now a leading that these 3 startups have alternative to buses, trains and revolutionized the world of road short-haul aircraft. passenger transport over the last 10 years. Tesla, Uber and Blabacar - and their counterparts in other parts of By launching a company with the world - are no longer startups. global ambitions in this industry, Are there new startups that will the likes of which had not been herald market re-alignments of the seen since the creation of Honda in magnitude of these 3 companies? 1948, Tesla shook well-established If so, in which domains? How are car manufacturers. It opened the they going to do it? door to a new generation of cars: To answer these questions, we electric, connected, autonomous. studied 421* startups associated with on-road mobility. The world of taxis was halted, even blocked. By relying on This study of 421 startups allowed smartphones, Uber dynamised us to highlight 3 major groups: the situation and somewhat satisfied - not without criticism - // Startups that contribute to the the shortage of affordable private emergence of a new generation of driver services in some cities. cars; // Those which conceive mobility not The is simple through means, but as a service; (...on paper): exploit the over- // Those that mix the future of the capacity that one person has in vehicle and new types of services to order to make it available to all. anticipate future market needs and What has done for hotel technological advances. business, Blablacar has succeeded

*Source: These 421 startups are mainly extracted from the Dealroom database, which focuses on high-growth companies in and beyond.

2018 I © WAVESTONE 2 3 Seeking one The game is EXECUTIVE SUMMARY step further wide open

The previous two categories Startups are no longer an explore movements that have epiphenomenon. That is especially already started. Even more true in transportation. Through questions arise when it comes to partnerships, investments or looking further and thinking about acquisitions, traditional players Designing the Thinking in mixing autonomy and services. of this sector are now getting even closer to those from which future of the terms of services Only few startups are disruptions might occur. New vehicle rather than experimenting shuttles in powers, connected services, partnership with transport autonomous capacities and means operators. A few others already sources of change are numerous. Electric, connected and autonomous. imagine an even farther future, The future of mobility will come Tesla is no longer the only manufacturer One evolution is eminent and seems to coming out of the only question of from the combination of these - coming from nowhere - to aim accelerate: at least in Europe, cars are transportation. elements. for the emergence of a completely less and less a matter of property and renewed car. Future Faraday, Byton, owning a car is no longer an objective For this point of view, the way Lucid... attempts are multiplying, often in itself, given that drivers’ first concern infrastructure will interact with supported by Chinese funding. is the lower cost of ownership. Given cars is still a partially explored this crucial change, some startups are issue. These interactions could The startups that this analysis studied looking to accelerate the development contribute to a profound change SMART do not belong to this new-builder of Car as a Service. in our approach to personal INFRASTRUCTURES category. Nevertheless, they contribute transportation. NEW AUTONOMOUS 32 to the development of the components Uber and Blablacar have respectively MOBILITY SERVICES of this new vision of automotive. solved the problem of ride-sharing (I 28 Whether in embedded autonomous drive you where you want to go) and technologies, future car powers or carpooling (I share with you the ride I the valorisation of car and driver data, have planned to do). Accordingly, new Multimodality 55 they cover practically all fields of startups are niche-specific in these and autonomy development. areas. Conversely, car sharing (I rent my own car and you can drive it where should be a These components are in addition to you want) is still an ongoing issue; CAR AS A SERVICE 94 perfect match cybersecurity, which is a major variable the service is far from being widely that the connected vehicle will have to available and many startups are still Upcoming contend with. looking for the jackpot. mobility Some startups go further and do not CYBERSECURITY 42 services limit their service approach to cars only. will be seamless It is therefore a question of thinking each trip as a multimodal journey that FUTURE CARS POWER 24 and multimodal must be optimized. Cars, bikes, trains, buses... no matter how. But long is the road, and this simple idea might be at the end of the day much more complex CAR & DRIVER DATA 61 The future than initially imagined. vehicle is much

more than just numbers of startups EMBEDDED connected AUTONOMOUS 85 Source: Dealroom Worldwide startups repartition by category TECHNOLOGY 4 5 The future vehicle is much more than just connected

EMBEDDED AUTONOMOUS TECHNOLOGY CAR & DRIVER DATA FUTURE CARS POWER CYBERSECURITY

6 7 EMBEDDED AUTONOMOUS TECHNOLGY

The startup ecosystem for embedded self- On all these innovations, startups had driving technology has numerous facets. the upper hand and are at the center of It does not just cover the Autonomous big players’ attention as shown by recent Startups are at Systems & Artificial Intelligence aspects acquisition and new funding records. that operate the vehicle, but also the array Through them, traditional actors have the of onboard sensors and vision technologies, real opportunity to boost their technology as well as the more sophisticated mapping push and speed-up their autonomous the very heart of technologies. vehicle programs. the autonomous ONBOARD SENSORS & VISION TECHNOLOGIES 33% technology 16% AUTONOMOUS SYSTEMS & evolution ARTIFICIAL INTELLIGENCE MAPPING TECHNOLOGIES 51%

Source: Dealroom Worldwide distribution of startups by type of embedded autonomous technology

ONBOARD SENSORS & VISION TECH.- LIDAR

Innoviz Technologies, flagship of Israeli technological innovation

Headquartered in Israel, Innoviz is one of the most funded self-driving technologies startup of 2017, mostly from leading auto industry suppliers Delphi Automotive and Magna International. In January 2018, the startup announced the release of InnovizPro, a solution that will enable their LiDAR sensor to come with significantly lower costs and smaller sizes than those already existing in the market. Founders: Amit Steinberg, Omer David Keilaf, Oren Buskila, Oren Rosenzweig, Zohar ZIsapel

Innoviz Technologies Series B – Funds raised: $82M Country: Israel

8 9 Investors are betting on startups developing improved onboard sensors and vision technologies The development of autonomous vehicles is one of « the main applications of machine-learning systems, One of the hottest technologies among the In addition to Radar and LiDAR-based biomimetics or interactions based on multi-agent Embedded Autonomous Technology field solutions, autonomous vehicles require systems which are already attracting significant is onboard sensors and vision technologies very good camera vision systems to reach with nearly $1.7bn of total investments full autonomy in natural unconstrained investment from existing players. during 2017. environments. Last year’s acquisition It is often considered as a major commercial of by Intel for $15.3bn or the LiDAR “Light Detection And Ranging” latest $600m record for venture capital application of AI on a large scale. A 2017 study by the startups represent strategical targets for funding in the AI sector set by the Chinese Brookings Institute estimated that more than $80 investors and particularly carmarkers with SenseTime, specialized in camera-based more than $719m global funding. In 2017, image processing and valuated at $4.5bn, billion has already been invested in the autonomous

GM and Ford-backed Argo AI acquired show how crucial those innovations are. vehicle.

promising US LiDAR startups (Strobe and Princeton Lightwave) to accelerate their Key investors are recognizing the value These figures reveal the technological race engaged autonomous vehicle developments, reduce of the startups that innovate on hardware in that purpose, between the big carmakers, but « costs of production and also take control of components, and are moving their pawns their supply chain. forwards to lock down this technology for also featuring traditional and new actors from the their own autonomous vehicle programs. advanced technologies industry.

FOR A MEANINGFUL ARTIFICIAL INTELLIGENCE, BY CÉDRIC VILLANI, The new value chain requires MATHEMATICIAN AND MEMBER OF FRENCH PARLIAMENT - 2018 AI expertise

28 startups, representing around $2.3bn of The effervescence around those startups total funding, are creating AI software for is due to the shift from equipment-first autonomous vehicles using deep learning sector to software-first sector. Carmakers technology. who truly take that shift into account and enter the new value chain will win The fierce competition to map 4 well known startups - Argo AI, Nauto, Pony the race and stay competitive… but AI and Preferred Networks - have received transforming themselves into technology- the world more than $1.4bn from carmakers since first companies will not be easy. 2014. GM has acquired Cruise automotion in The best AI software in the world will of currently embedded GPS’s and have 2016 for $1bn and startups like Aurora Tech. Establishing partnerships with exciting and not be enough for a vehicle to be become the sinews of the war. Carmakers or Nutonomy have already announced key promising startups seem to be the royal fully autonomous. It will need highly are at work to ensure that they will not partnerships with Volkswagen / Hyundai road to achieve this transformation. sophisticated, ultra precise maps updated become dependent to the omnipresent and PSA respectively. in real time and augmenting the sensors to actor Google and its well known Google circulate on roads. Maps service.

For this reason, carmakers have been Some startups like Civil Maps, DeepMap, investing for several years in cartography- Carmera, Momenta AI or Ushr still try to GM’s attitude towards tech. startups can be compared to Apple strategy. Both of specialized startups and firms. BMW, make a place in this highly competitive them have decided to combine software and manufacturing to allow to capture Daimler and Audi, for instance, acquired for market, dominated by TomTom and Here. the full added value of their product. This integrated approach is reflected by €2.8bn the Here company in 2015. ’ GM’s following moves on the market : But the game will prove very difficult, • Strobe – LiDar (Acquisition) These so called high definition or 3D maps despite the fundraisings. fully integrated go far beyond basic turn-by-turn directions • Cruise Automation – IA system (Acquisition) approach • Ushr – HD & 3D Map (Investment)

Baidu or are betting the opposite by focusing on the operating system and integrating10 into hardware provided by OEMs. 11 In 2018, the penetration rate CAR AND DRIVER DATA of connected vehicles in the

The exploitation of data from vehicles is one of the world market is leading field of investigation for the startups of our The data panel. 28.8% Currently, the majority of the car fleet still consists of unconnected vehicles, and many (87%) startups Source: Statista, 2018 of this category only exist to overcome the lack of generated by connectivity of current vehicles.

These startups embed hardware plugins or use connected cars sensors from passenger smartphones to collect data and offer all types of services based on the will become more analysis of vehicle data. significant with the arrival of autonomy CONNECTED SERVICES: 53 STARTUPS WITH $980M OF TOTAL FUNDING

INSURANCE 3

DATA ANALYTICS 12

DIAGNOSTICS 15

FLEET MANAGER 16

IN-CAR SERVICES 7

Source: Dealroom Number of startups by type of connected services provided

12 13 Connectivity and Mastering the openness are no autonomous

longer options car’s data-driven $16M BESTMILE $34M VULOG (Suisse, partnership Navya) (, backed by BpiFrance) Nowadays, carmakers tend to systematically ecosystem produce connected vehicle by default, and regulators enforce manufacturers and According to Intel CEO, Brian Krzanich, in mobility operators to expose their collected 2020 the average autonomous car may data through APIs in order to allow service process 4,000 gigabytes of data per day. RIDECELL AUTONOMIC providers to access data at various level Indeed, on-board AI systems, as well as $26M N/A of processing (raw data, pre-processed, other embedded technology like sensors (USA, partnership Auro and backed (USA, acquired by Ford) enriched…). and mapping which power self-driving, by BMW i Ventures) must be constantly producing data. Some carmakers have already started this transformation by opening part of their That’s why carmakers are now searching connected vehicle APIs and encouraging for platforms which are capable of handling Source: Dealroom the huge amount of data generated by self- developers to innovate and build services Flagships startups offering autonomous mobility platform around mobility. driving cars.

This openness policy has to go hand in hand Applications for effective data storage and processing are numerous and we can divide with a reflection on protection and use of To build their autonomous vehicle // Rely on interoperability standards to them into two categories: the personal data of drivers and travelers. management platform and manipulate this add technology or service layers by // RUNNING AND IMPROVING THE growing flow of data, manufacturers adopt startup buyout/partnership (e.g GM, On this specific point, the General Data different strategies. They either: Ford, Zenuity) Protection Reglementation (GDPR) AUTONOMOUS DRIVING SYSTEM // Leverage cloud platforms developed by is a structuring element: from the car // PROVIDING CRUCIAL SERVICES // Develop their own system from scratch tech giants (Baidu, AWS) and benefit manufacturers’ and mobility operators’ APPLICATIONS LIKE DIAGNOSTICS AND to remain the sole owner and user (e.g from their partnerships point of view who will have to demonstrate FLEET MANAGEMENT Waymo) that the data subject consented to the processing of his or her personal data, but In this race, very few startups position also from the service providers’ point of themselves on this market segment as BLOCKCHAIN view who will have to ensure that personal it requires an access to new generation data is processed in a lawful, fair and vehicles to test the future technologies and transparent way with regard to the data services. These startups are, for the most subject, collected for specified, explicit and part, already linked to major players in the DOVU is an English startup shaping legitimate purposes, and not be further market. the blockchain model for the mobility processed in an incompatible way with these purposes. ecosystem. Backed by InMotion Ventures, the Jaguar Land Rover subsidiary investment fund, DOVU wants to become “the global marketplace for transport data”. It means that owners of cars will also be owners of the data and that consumers of data will pay to get access to the data that the vehicle generates. Then, data owners can use the ExVe Standard received tokens to buy other mobility services. Founders: Arwen Smit, Irfon Watkins To ensure secure access to vehicle data, off-loaded facilities Seed stage – Funds raised: $6.2M are set up, from which service providers can access data, rather Dovu Country: than having direct access to the vehicle in an uncontrolled way. The ISO 20077 standard (ExVe: Extended Vehicle) wants to define the rules for interoperability and protection of this data, thus facilitating access to vehicle data.

14 15 FUTURE CARS POWER

It is the moment for ecology and major Everything suggests that futures vehicles markets are already aiming to significantly will be neither gasoline nor diesel, and reduce their pollution rate. One big research is therefore massively focused on challenge for tomorrow’s vehicles is alternative greener energies. For the time Cars tend to be therefore for automakers and their suppliers being, hybrids vehicle market is growing to find innovative solutions to reduce the but appears to be more like a transition emissions and consumption of their ever phase towards eco-friendly vehicles than a electric smarter and energy-hungry cars. real sustainable alternative. Alternative fuel vehicles have particularly seen their sales increase by 39.7%* in 2017 in Europe, which shows the will of consumers to favor other The phasing out of energies over fuel. In addition, a significant number of countries shows their willingness fuel engine to stop sales of gasoline and diesel vehicles.

* from The Electric Vehicle World Sales Database (evvolumes. com)

COUNTRIES HAVE FIXED TARGETS TO STOP SALES OF GASOLINE AND DIESEL VEHICLES

2025 2030 2035 2040

The chinese government has not yet given a precise date to stop the sales of gasoline and diesel vehicles but is preparing a plan to follow the above countries.

16 17 Global carmakers the Hydrogen Council, that will invest $10 Electric under the will invest $90 Hydrogen can still billion over the next 10 years in developing spotlight billion at least* come into play hydrogen technology and infrastructure. Even though there are a lot of investments, Although it seems less popular than electric, almost no startups exist in the field of The hype surrounding electric vehicles is hydrogen has not yet said its last word. hydrogen, and investments mainly concern building and is setting new records with *Source: Reuters, 2018 Indeed, while automotive giants like GM and heavy infrastructures for hydrogen storage its worldwide sales rising by 58%* in 2017 Tesla are all about electric cars and seem and distribution. Moreover, as the current (pure-electric & plug-in hybrid vehicles). to have completely abandoned the latter demand of hydrogen vehicles remains Mandated to be a clean and eco-friendly option, other automakers do not hesitate to so low, similarly to the number of cars energy, electric market managed to enticed invest huge sums on it. already on the roads, these are long-term as well consumers as automakers, who do investments that do not allow profits before not hesitate to invest massively in it. Toyota, Daimler and BMW are leading a a real democratization of such cars. group of 13 companies across the world: This field has seen many startups flourish, representing nearly one billion dollars of investments in the last three years for our panel of around twenty startups specialized FUTURE POWERTRAIN in batteries and next-gen components. Their purpose is to ensure the level of power and Investments in operating life required for electric vehicles electrified vehicles SolidEnergy Systems is an American startup of tomorrow, which happens to be one of « which manufactures a new kind of battery. their weaknesses right now. announced to date

The most skeptical ones are however include at least $19 The promise of this startup is to offer a battery based on lithium-metal

wondering about the real impact of billion by automakers in technology that has an autonomy twice as large as the market references. electric engines on ecology and exhibit its It means that a battery could be half the size of a standard lithium-metal controversial production in nuclear power the United States, $21 « plants or coal plants. This is one of the main billion in China and $52 battery and hold the same amount of energy. The company is focusing for arguments, with the charging time of its SolidEnergy the moment on drones but will certainly extend its scope to other types batteries, of those who advocate another billion in .* source of energy that claims also to be eco- of mobility. friendly: hydrogen. *Source: Reuters, 2018 Founders: Qichao Hu Series C – Funds raised: $54.5M Country: USA * from The Electric Vehicle World Sales Database (evvolumes.com)

Carmakers are investing in startups

• GM invested in Sakti3, SolidEnergy, Tula Technology, Proterra, SiNode Systems • Volkswagen invested in QuantumScape • PSA invested in Nidec (Joint Venture - €220M) • Daimler invested in StoreDot ($60M), VantagePower

18 19 The automotive industry must now consider Due to the current specificities and CYBERSECURITY cybersecurity as an integral part of how constraints related to the automotive cars are built, just as physical safety became industry and in particular, a critical part of how cars were built in the startups are having to adapt existing late 20th century. cybersecurity concepts and solutions while innovating including: Many people in this field caught on leading to the creation of many startups on the // Manufacturing costs; topic. Today, no less than 20 startups try to // Proprietary and specific technologies When provide solutions to face automotive cyber for embedded materials, with little risks. security originally integrated (e.g. CAN – Controller Area Network); cybersecurity // Systems with a long lifetime and Cybersecurity, yes, complicated upgrade capacity; comes into play but with a different // Limited processing capacity; // Architecture complexity. approach

Those startups show that the challenges to be handled are almost the same as those usually encountered in other sectors but need to be addressed differently.

Cybersecurity is seen by automotive and technology executives as the biggest obstacle to the growth of connected cars

WHAT DO YOU SEE AS THE BIGGEST OBSTACLE TO THE GROWTH OF CONNECTED CARS?

COST 6% SAFETY CONCERNS 18% 31% CYBERSECURITY / PRIVACY CONCERNS CAPABILITIES OF THE TECHNOLOGY 19% CONSUMER READINESS TO ADAPT 10% LACK OF REGULATORY FRAMEWORK 13%

Source: Foley, 2017 Connected Cars & Autonomous Vehicles Survey (2017) Responses from 83 automotive and technology executives

20 21 4 MAIN CYBERSECURITY OBJECTIVES are cybersecurity in the current constraints of of working and new teams? The answer is the market dynamism on the topic. For addressed by startups in the field, through in-vehicle architecture and components. certainly a combination of these 3 factors instance, Thales and Vector recently formed the products and services they propose: as the connected and autonomous car a joint-venture to work on addressing One another key point is that vehicles represents a major shift in their organization cybersecurity challenges related to the 1. PROTECTION OF HARDWARE, have a lot in commons and share, for some and strategy. connected and autonomous car. FIRMWARE AND SOFTWARE, as well aspects, the same characteristics with as related processed-data which is a the . That’s why it is not This fast movement is clearly visible when true challenge especially when having surprising to see startups like Prove&Run looking at the list of the latest startups A new area of risk to implement cryptography mechanisms or IoT.BZH coming from this world and acquisitions below: requiring significant computational offering embedded software and hardware is rising power oriented security services and solutions to // Founded in 2013, ADVANCED the automotive market. TELEMATIC SYSTEMS was acquired by The arrival of autonomous cars is a new 2. ENSURING ONLY LEGITIMATE HERE in 2018; challenge for cybersecurity. Many new risk COMMUNICATIONS are allowed scenarios will have to be taken into account, to ensuring no-one is able to take // Founded in 2013, ARGUS CYBER mainly in the field of attacks on artificial unauthorized control of a car, while Major actors invest SECURITY was acquired by Continental intelligence, advanced sensors security and protecting data in transit which is in 2017; even automated response to cyber events. essential for privacy in startups at an // Founded in 2012, TRUSTPOINT To face this new challenge, solutions are only 3. DETECTING OF ABNORMAL EVENTS unprecedented INNOVATION TECHNOLOGIES was at a development phase and not particularly AND REACTING accordingly in order to acquired by ETAS (Bosch) in 2017, which dedicated to the automotive sector. Many prevent any intrusion or cyber attacks on pace had already acquired the cybersecurity researchers like Nicolas Papernot or Ian a car or a whole fleet company Escrypt in 2012; Goodfellow are currently working on how The ongoing creation of cybersecurity to prevent Adversarial Attacks which aim at 4. MANAGEMENT OF SYSTEMS startups in the automotive industry over // Founded in 2012, TOWERSEC was deceiving AI and which could lead, if applied LIFECYCLE, particularly related- the past years highlights the fact that acquired by Harman in 2016, which was to an autonomous car, to safety issues. vulnerabilities is becoming a major cybersecurity has become a top concern in in turn acquired by Samsung in 2017; concern all the more so when a car has a the sector. Breakthrough solutions are probably being 15-to-20-year life year life. // Founded in 2010, ARILOU developed by startups from the Zeroth. Established automotive companies, like car TECHNOLOGIES was acquired by NNG AI accelerator, an Artificial Intelligence and equipment manufacturers, know this in 2016. and Machine Learning focused startup It clearly appears that intrusion detection well. accelerator. and threats prevention are two of the most IIn addition to these acquisitions, many covered topics as 70% of the automotive Some focus on hiring new talents and/or actors also invest in startups and build Although they will undoubtedly provide cybersecurity startups are offering related developing technologies in-house but most partnerships with them, like Denso for bleeding edge solutions to these complex solutions. One can say that the market of them are very aggressive in investing or example, which recently invested over $2 problems, no one has declared working on and car manufacturers kept in mind what buying startups at an unprecedented pace. Million in Dellfer, a startup that was founded the automotive field yet. happened to the Jeep Cherokee. However Are they afraid of the potential competition? in 2016. this figure may originates from the fact that Are they unable to provide these innovations Certainly, cybersecurity and safety will have is probably easier to provide security at with their own R&D teams? Do they want to Besides, startups are not the only ones to to be addressed jointly to make autonomous the car boundary rather than to integrate accelerate with the integration of new ways be concerned. Some established companies vehicles a reality. in the field are also concerned, highlighting

Cybersecurity startups anticipate future connected car architectures

Even if startups mainly offer solutions and services to secure existing systems and architectures within modern vehicles, Another example is Arilou Technologies*, which recently there is a trend today showing that some of them are anticipating and building cybersecurity solutions for the forthcoming designed a new cybersecurity tool called the “Ethernet systems and architectures. Security Hub” focused on for protecting future connected and autonomous vehicles equipped with Ethernet networks The startup Argus Cyber Security* is a good example. One of its first products was the “CAN firewall”, to protect the historical rather than CAN networks. CAN network which is still the reference protocol in current vehicles. The startup has since developed new solutions like the “In-Vehicle Network Protection Suite” to support a wide array of network protocols – CAN and CAN-FD, FlexRay, Ethernet (*) This startup has since been acquired. See the text above. (with SOME/IP, DoIP etc.),... – and thus defend current and22 future vehicle architectures. 23 Upcoming mobility services will be seamless and multimodal

CAR AS A SERVICE MOBILITY AS A SERVICE

24 25 CAR AS A SERVICE

The rise of connectivity and sharing can also take two major forms: economy has opened a wide range of // Long distance and occasional travel services around cars that are transforming such as Blablacar. the way we use and live them. Startups have Transforming cars // Short distance and daily commuting disrupted and are, to this day, still boosting the car services market. There are 3 major such as Klaxit, Flinc or Luxi. types of services facing an increasing into a platform demand:

// RIDE-SHARING: ride hailing and peer-to- Beyond unicorn of shared services peer platforms connecting on-demand drivers with travelers for a personalized companies, what itinerary such as Uber, Didi or . // CAR SHARING: new generation of short can be learned term car renting solutions that can take two major forms: from the startups // Professional fleets owned by competing in this companies such as Zipcar, DriveNow or Car2Go that can be accessible field? through free-floating or dedicated spaces in the streets. Among these 3 categories, the ride-sharing // On-demand platforms connecting services have been predominant in terms private owners with travelers such as, of fund raising and number of users over Drivy, Getaround or . The idea is the last decade. Launched with Uber for people to rent their cars to others in 2009 and quickly followed by other when they are not being used. companies (like DiDi, Grab or Ola), these // CARPOOLING: car owner sharing his ride former startups are nowadays big mature with people, on the same journey. This companies (7 years-old on average) and have raised alone about 50 billion dollars.

27 26 40 RIDE-SHARING A distribution existing within 35 CAR SHARING geographic regions 30 CARPOOLING Moreover, the distribution among different region, with a prevalence of the car sharing 25 car services is also accurate by geographic category in both Europe and America. 20 20 15

10 12 10 10 5

0 6 NUMBER OF STARTUPS (cumulated) NUMBER OF STARTUPS 5 BEFORE 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2 2 2007

Source: Dealroom RIDE-SHARING CAR SHARING Car sharing startups never stopped sparking new businesses

15 Once the major actors of ride-sharing are The car sharing category concentrates excluded from the scope, other trends the greatest number of startups. Those emerge. providing peer-to-peer rental account NORTH AMERICA EUROPE for around 25%, while the remaining 75% Carpooling is becoming more urban, with of startups deal with car rentals from 4 the multiplication of commuting startups dedicated vehicle fleets. Though it may MIDDLE EAST ASIA encouraging people to share their ride appear that there is no famous unicorn 0 1 while going to work, for short distances. startup offering such services, users are This expands the original long distance numerous. In fact, 10.5 million people used service of older actors like Blablacar and them in 2017 (8 million for traditional car CARPOOLING boosts the ecosystem with investments sharing & 2.5 million for peer-to-peer and partnerships. renting) according to Statista. Source: Dealroom “Car As a Service” startups geographical distribution

Carmakers are also betting on Car as a Service

Ride-sharing, Carpooling and Car Sharing services could be seen as a threat to the traditional business model of RCI Bank and Services, subsidiary of Renault Group, acquired 2 startups in carmakers: those services could reduce individual car ownership. 2017: Yuso, a global dispatch software solution for taxis, private hire and Major automakers have already understood that they have to be fully involved in this new ecosystem of mobility delivery services; Marcel, a VTC booking platform services. For this reason, most of them have already massively invested or acquired startups in that field. The BMW Group and Daimler AG announced in March 2018 that they plan Through those moves, carmakers gain valuable knowledge and technologies, like fleet management, diverging to combine and strategically expand their existing on-demand mobility from their current core business. It’s essential to prepare for the arrival of autonomous vehicles. offering in the area of Car as a Service (Car2Go and DriveNow for car General Motors acquired select assets and employees from the startup Sidecar and launched in 2016 its own sharing; mytaxi, Chauffeur Privé, Clever Taxi and for ride-sharing) . car-sharing service called “Maven”

28 29 MOBILITY AS A SERVICE

People expect new adaptive and journeys that meet all customers’ criteria: personalized ways of transportation. travel time, cost, gas emission, calories Mobility as a Service is about efficiently burned, accessibility for disabled persons Connecting connecting car services, mass transit and for example. Besides, big companies smooth mobility to provide high quality such as car manufacturers, public journeys. transport operators or tech giants are aiming to broaden their scope by key players The need is obvious, but transforming it into providing seamless multimodal door-to- reality is a real challenge regarding several door experiences through acquisitions, issues: investments and partnerships. The and services to key challenge is to provide a complete // THE FIRST STEP IS ABOUT TECHNOLOGY. and seamless multimodal solution that Data need to be accessed and processed combines different modes in function of to be able to propose reliable transport the exact customer’s need. provide seamless solutions. Considering that the availability of some modes varies (bikes for example), that traffic impacts schedules (buses for // MOBILITY AS A SERVICE IS ALSO journeys instance) and that incidents can occur for STRONGLY TIED TO TERRITORIAL all modes, real time access to information POLICIES. A new balance is yet to be and quick analysis is key to offer efficient found among open data, regulated journeys. markets, traffic management and sidewalk occupation. Thereby, Mobility as a Service relies on the perfect match / / OFFERS NEED TO BE VARIOUS in the of regulators, traditional actors and new aim to combine them into different players.

In wider metropolitan areas, new types of shared « services such as Shared Taxis or Taxi-Buses can serve as feeders to existing high-capacity

networks such as metro or rail lines. This facilitates the

introduction of shared services and increases the use of those high-capacity services and the overall positive « impacts in terms of congestion reduction, more equitable access and gains in public space.

INTERNATIONAL TRANSPORT FORUM PAPER (OECD) “TRANSITION TO SHARED MOBILITY” – 2017

30 31 Startups are making a contribution Some initiatives reveal that towards multimodality multimodality and integrated solutions

Numerous journey planning applications experience through adaptive itinerary and are an underlying trend are aiming to provide smart route solutions, smart connections in personalized contexts, gathering different mobility services for a thanks to open and contextualized data. Though multimodal and seamless services Each player fulfills its own strategy by real-time specific journey. face major challenges and require sustained acting on its mobility suite and improving The farthest step is combining all modes, political commitment, some initiatives are its customer relationship. Some are matching public transport and including public transport, booking worth analyzing since they are opening the car services to provide adaptive routes like payment and mobile ticketing in a single road of dreamed mobility services. For example, Transport Operators Citymapper or . Other platforms can app. Personal transportation (ones own bike can consolidate their offer by adding also localize multiple car and two-wheels for example) can potentially be considered. This multi-player field is connecting complementary mobility, OEMs can exploit services on a single map like Free2move, Such a service helps anticipating the journey traditional actors as well as unicorns with their own products or tech giants can extend which operates in big European cities. while avoiding time-consuming physical startups that provide new mobility services. the scope of their digital applications. payment and registration. Such services already improve the traveler 4 EXAMPLES OF STRATEGIC INVESTMENTS & ACQUISITIONS RATP FORD DIDI ALIBABA In 2016, MaaS Global launched an application called TRANSPORT OPERATOR OEM TECH GIANT TECH GIANT Whim to carry out this advanced integration in and beyond. Whim can combine mass transit, bike, taxi and rental services through different subscription plans. Companies like Transdev, Toyota and Denso have already invested. Founders: Kaj Pyyhtia, Sampo Hietanen CITYSCOOT CHARIOT BLUE GOGO OFO Early VC – Funds raised: $20.5M Country: Finland SCOOTER SHARING SHUTTLE BIKE SHARING BIKE SHARING

MaaS Global INTEGRATED MOBILITY

Two-wheels services and parking solutions 2 European projects complement transportation offers 1. EIT Digital is launching Easy2go, a Pay-as-you-go solution that combines Two-wheels sharing services (bikes & scooters) have been rising since 2015 and are booming in large public transport and carpooling in one application while providing a single cities. Startups in this field have raised more than 400 million dollars, some of which, such as Mobike and ticket. Customers will only pay their effective use of the service. It will Ofo (free floating bikes), have already become unicorns (not included in our study). They notably help be integrated with multimodal applications in several countries by 2019. dealing with the first or last mile of a journey. Furthermore, these services support the evolution of cities towards green and non-polluted areas. 100% of scooter sharing startups studied are electric. 2. European Union’s Horizon 2020’s IMOVE is about providing a better Parking solutions are also addressing specific urban needs and drastically connectivity among MaaS solutions over Europe and creating a sort of dimishing the time to find a place. Some startups are leading the way, such as Parkbee and GottaPark. “roaming” as in telecommunications to facilitate transnational services.

32 33 Multimodality and autonomy should be a perfect match But several issues still need to be explored

NEW AUTONOMOUS MOBILITY SERVICES SMART INFRASTRUCTURES

34 35 NEW AUTONOMOUS MOBILITY SERVICES

Current // Since 2016, the city of Lyon in France has integrated a Navya shuttle transportation into a tramway line to face the first/ modes are last mile challenge. // Easymile is working on integrated already becoming transport solutions with the University of Melbourne by providing Some startups are autonomous autonomous shuttles in the university campus already shaping next // In the mean time, very few startups are American and European startups have developing a FULLY AUTONOMOUS adopted two different ways of mixing ROBO-TAXI TECHNOLOGY. Zoox and generations’ mobility autonomy and mobility by making Voyage are two of them. This is a field driverless shuttles and taxis: that is mainly explored by tech giants and services carmakers. Waymo is testing its robo-taxi // A couple of European startups offer in Arizona and Ford announced that are focusing on pendular urban they plan to operate a robo-taxi fleet of transportation with the new kind of their own in 2021. AUTONOMOUS SHUTTLES. Hundreds of cities around the world have already been A few startups concentrate investments attracted by this new technology and and research on the specific field of shuttle are currently testing these autonomous mobility. They are leading and endorsing vehicles. As of now, uses are in limited the deployment of this new type of vehicles area. Here are some examples of current worldwide. This is notably the case of the experimentations 2 following French startups that have been leading the development of shuttles since 2014.

DRIVERLESS SHUTTLES

Created in 2014, these two French companies have raised together more than 60 million dollars. Benefiting from a multiplicity of tests realised in various conditions, these companies provide a preview of tomorrow’s urban mobility and accustom as of now users to new autonomous mobility. These startups also capitalize on their learnings and experiences to think and design new services beyond simple autonomous shuttles. NAVYA EASYMILE Founder: Christophe Sapet Founders: Gilbert Gagnaire, Series B – Funds raised: $42.6M Philippe Ligier

Navya& Easysmile Country: France Series A – Funds raised: $18.6M Country: France

36 37 This aspect is currently not addressed by Autonomy will startups. As of now, only few startups work Very few startups are imagining on rethinking HMI and in-car experience. This imply rethinking is likely due to to the very strong adhesion completely different transportation to the vehicle’s physical structure. However, cars from the companies that are working on shuttles and modes robo-taxis are already integrating tablets inside to offer or touch screens that help passengers get While autonomous shuttles and robo-taxis are designed for a foreseeable future, some touristic information or order drinks for startups have decided to completely rethink mobility from scratch with disruptive and news services example. futuristic prototypes such as flying cars (e.g Cora by Kitty Hawk) and modular vehicles (e.g Next Future Transportation). Vehicles will no longer be machines that Furthermore, no startup has been simply move people from point A to point specifically identified in on-board services, B. Once the car doesn’t need a driver, the though different new activities could passenger will have time available for be imagined, like concierge or wellness leisurely activities/entertainment. services.

Furthermore, as the level 5 of autonomy will In short, everyone’s priority seems to be MODULAR PODS erase the steering wheel and pedals, the focused on making autonomous vehicles inside of the vehicle could be redesigned in run safely, on-board services will follow a completely different way. step-by-step. Next Future Transportation is an American startup developing a modular transportation system. Autonomous Pods can be coupled with one another to guarantee as much flexibility as a personal car, while being more traffic efficient than a bus. A pilot project of this futuristic concept is being implemented in Dubai since February 2018.

Founders: Emmanuele Spera, Tommaso Gecchelin Seed Phase - Funds raised: $375,000 Country: USA Next Future Transportation

38 39 SMART INFRASTRUCTURES

According to a study carried out by First uses don’t Stanford University in 2014, autonomous cars could account for between 70% and necessarily 90% of taxis on the roads by 2060. At that A leverage to time, and even before, autonomous vehicle- require connected based mobility services and traditional cars will certainly coexist and, in that case, wider autonomous infrastructures smart infrastructure could help in managing the cohabitation with other cars and with but wider ones pedestrians who will be unfamiliar with mobility? such technologies. For example, connected may need more traffic lights could help manage precedence communication between all road users. Wider use of autonomy in transportation may require infrastructures that are able As the race towards core self-driving to communicate with the vehicles and technology becomes fierce, only few analyze the data. It indeed could appear as startups are developing V2X technology. a considerable leverage to develop more secure mobility services, improved traffic The reality is that, for the moment, V2X does management and congestion reduction, not seem to be set as a prerequisite for the and improve the sharing of roads between first AV deployment on roads, considering all vehicles and pedestrians, although very that driverless cars are running in limited or few use cases are being exposed for the dedicated areas. moment.

Communication between vehicles,

« infrastructure and with other road users is crucial also to increase the safety of automated« vehicles and their full integration into the overall transport system.

EUROPEAN COMMISSION COMMUNICATION “A EUROPEAN STRATEGY ON COOPERATIVE INTELLIGENT TRANSPORT SYSTEMS, A MILESTONE TOWARDS COOPERATIVE, CONNECTED AND AUTOMATED MOBILITY” - 2016

40 41 // For authorizations to enter the street towns” (K-City in South Korea, Transpolis Very few startups before you can deploy a service or Experimentations in France, or Mcity in the USA for instance) technology planned to test new autonomous mobility seem to be able // For communication standards, generally and labs are key to services, integrating them in a connected infrastructure. to deal with road deployed by major players explore the whole infrastructures These large projects are often carried field Talking with traffic lights by communities and supported by more Some startups are beginning to make traditional actors. demonstrations with the use of V2X: for Very few startups seem able to penetrate example, NAVYA has just launched an the smart infrastructure market. It may be However, some startups are betting on the “Ghost towns” experimentation in an airport by taking because it is closely related to a need: smart infrastructure. They are positioning Understanding the future challenges of the into account the traffic light. The vehicle themselves on particular and close use to develop optimized mobility, communicates through the API of the // To own heavy equipment (parking, roads, cases, or to handle interoperability between public authorities and communities are infrastructure. antennas...) all infrastructures. investing in the construction of “ghost

9 9 8 6 WORLD MAP SHOWING SOME GHOST TOWNS AND CLOSED CIRCUITS USED TO TEST AUTONOMOUS CARS

CHARGING SMART SMART TRAFFIC ANALYSIS TERMINAL SIGNALISATION PARKING & PREDICTION

Source: Dealroom Number of startups by smart infrastructure market segment

GOMENTUM STATION SMART SIGNALISATION Concord (USA) M-CITY CEVA Ann Arbor (USA) Linas-Montlhéry (France) K-CITY Connected Signals, Inc. is an innovative startup ALMONO Hwaseong (South Korea) Pittsburg (USA) TRANSPOLIS in the connected car space that delivers real- Béligneux (France) time, predictive traffic signal data. NATIONAL INTELLIGENT This startup has developed sophisticated techniques to predict upcoming signal states. CONNECTED VEHICLE PILOT ZONE Knowing the current state of traffic lights and how they will change creates opportunities Shanghai (China) to increase driving safety, increase fuel efficiency, and improve the driving experience. They partner with municipalities, handling the complexities of gathering real-time signal data and making it available in consistent formats for a variety of uses. Founders: David Etherington, Matt Ginsberg Series A – Funds raised: $2.8M

Connected Signals Country: USA

42 43 A last word Green mobility Safe mobility Smooth mobility

Startups are numerous in the road mobility sector, Low-emission Increasing automation Congestion in investors are multiple. transportation is one holds great promises: metropolises deeply of the biggest issues speeding, drink-driving affects mobility In particular, tech giants, carmakers, and equipment we have to face in the or red light running effectiveness in terms of manufacturers seem determined to gamble on mobility. 21st century. Indeed would no longer be an the time it consumes, “Urban transport is issue. gas emission and These private companies contribute greatly to reshaping responsible for 23% of citizens ‘comfort. EU’s greenhouse gas Very few startups the future of mobility. emissions” according to focus directly on safety Working on next cars How does this dynamic contribute to public mobility a European Commission features, but their role is generation or future challenges? Are startups contributing to make the right communication. Startups key in integrating safety mobility services means path possible? seem to be completely by design. being able to offer a in line with these seamless journey to All the road mobility actors should now focus on expectations: they As a matter of fact, travelers. are contributing artificial intelligence greatly to accelerate will have to learn about Indeed, enhancing One aim: making mobility this transformation safety features : offers helps mixing greener, safer, smoother by providing electric travelling modes, vehicles for example. • Image analysis and while accelerating processing will cars’ connectivity and On-board intelligence need to become autonomy will help traffic can also help cars to run increasingly management. The next eco-driving, whatever the accurate, step is to start thinking power is. about on-board services • Abuse scenarios, to completely reshape Furthermore, shared whether in the form user experience. services help raise cars’ of cyberattacks or occupancy rate. Thus, road infrastructure vehicles on the road are vandalism, will used more responsibly, have to be better ecologically speaking. anticipated.

44 45 authors

LAURENT STOUPY, Partner [email protected]

AMAL BOUTAYEB, Manager [email protected] Our

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