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Mobility-as-a-Service: Unlocking the Value to OEMs

If you had 30 – 60 minutes per day to do whatever you needed to, whether for personal or professional needs, would you find value in that time? How about if you could help decrease the emissions generated by the number of vehicles on the road each day? Or, what if you could improve your brand purchase consideration by offering personalized content? Would you participate?

These are some of the questions that Mobility-as-a-Service (MaaS) helps to address, and justifies the need for such a service.

Emerging technologies, the Internet of Things, rapid growth of urbanization, and consumer demand for personalization and mobility preference has altered the traditional transportation model. Alternative mobility is expected to continue to grow. According to McKinsey, one out of ten cars produced in 2030 will potentially be a shared vehicle (ride share or car share), amounting to nearly 1.7 million vehicles.

The emergence of Uber and Lyft have stirred up automakers to jump into the game of MaaS to capitalize on this new form of vehicle engagement. In fact, just about every OEM is dabbling in some form of alternative transportation to adapt their business model to consumer demand. Why? Simply put, the monetization opportunity during ride/drive time.

The McKinsey report notes a potential 30% revenue growth of nearly $100 billion from data connectivity services, including apps, navigation, entertainment, remote services, and software upgrades by 2030.

However, that first impression of riding in a vehicle, whether passenger or driver, can influence future purchase consideration. A poor connected experience could cost an OEM a customer for life – and, according to the report, 41% of US consumers are willing to change car brand preference for connectivity.

But this rapid MaaS growth must be approached with a strategic intent to avoid fragmented user experience and costly back end system integrations. The expectations will be exceptional connectivity, personalization and security for all MaaS users. The key will be to take a wider view and understanding how transportation and mobility fit within consumers different lifestyles; whether commuting to work or taking the kids to their activities.

Addressing the different user scenarios causes complexity in delivering a personalized experience, as well as challenges in bringing different partners and infrastructures together. The in-vehicle experience becomes more than just pure product offering, but rather an exercise of complete ecosystem management.

The Covisint IoT Platform can help enable the Connected Vehicle and MaaS by securely connecting and managing digital ecosystems while allowing for rapid implementation and development. Learn how we can help provide a quality user experience so OEMs can capitalize on monetizing the user transportation time.

See our new Mobility-as-a-Service Solution Brief here.


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