CAAS - "Car-as-a-service"?

[widebody911]

Looks like more manufactures want to move to the Tesla model, under which the automaker has ultimate control over which features you can and cannot access on your car. The end game would appear to be a subscription service for various features, and subsequent owners of the car would probably have to pay for said features as well: exhibit "A" https://jalopnik.com/tesla-remotely-removes-autopilot-features-from-customer-1841472617

https://www.theverge.com/2020/7/2/21311332/bmw-in-car-purchase-heated-seats-software-over-the-air-updates

[onewhippedpuppy]

My newest model is a 2010, not so much a concern for me.

[Jeff Higgins]

I remember many years ago there was an article in Road and Track about the woman who founded the first urban car sharing program in the U.S. (I forget its name - they had a fleet of SMART cars in Seattle). She had by then sold the company and moved on. Anyway, one of her "visions" was the elimination of private vehicle ownership, with all cars, trucks, etc. being merely a "service" for which we would "pay as we go".

One of her justifications was the very observable fact that most cars, most of the time, are just sitting there taking up space. We build huge parking garages, parking lots, driveways and garages, and all of that for them - so they have a place to just sit. That was her vision that drove her original vehicle sharing company - less sitting, more driving, vastly reducing the infrastructure needed for them.

Very pragmatic, really, especially from the point of view of someone who sees cars merely as appliances. And let's face it - most people have that point of view. Relieve them of the maintenance, depreciation, and responsibility of owning a car, but still allow them pretty much unfettered access to one when they want it. A lot of people would go for that. Soulless bastards that they are...

[Mahler9th]

This train has been on the tracks for a while.

For example, one of the players in the space has been Fair. Here is a link to a related article:

https://www.latimes.com/business/story/2020-03-11/fair-car-buying-app

The tech is advancing rapidly-- kind of exponentially actually, and social change is also happening very fast. Along with other factors, this confluence is likely to result in a quite different-looking auto industry pretty quickly as we head toward the end of this quarter century. And not just the auto industry per-se, but for example adjacent areas like auto insurance. Many of the existing companies are already planning for a very different future... quite a few of them have active advanced business/technology, innovation, and/or venture capital people here in Silicon Valley.

I am a bit plugged in to this massive set of changes on the biz side... opportunities abound.

The current Pandemic and after-effects that are likely to result may be considered by some as accelerating some of these changes.

Again opportunities is some existing, emerging and new areas, and threats (sometimes existential) in others.

[epbrown]

Originally Posted by Jeff Higgins

One of her justifications was the very observable fact that most cars, most of the time, are just sitting there taking up space. We build huge parking garages, parking lots, driveways and garages, and all of that for them - so they have a place to just sit. That was her vision that drove her original vehicle sharing company - less sitting, more driving, vastly reducing the infrastructure needed for them.

At my building in Chicago, the parking lot had 3 spots for ZipCars, which was supposed to do this. In an urban area, you really do see the need. I went for 15 years without a car, and most people only drove on the weekends, and often not even then, since getting a good spot could be a hassle.

Here in KY, the service is lurking near most college campuses.

[JavaBrewer]

Originally Posted by Jeff Higgins

I remember many years ago there was an article in Road and Track about the woman who founded the first urban car sharing program in the U.S. (I forget its name - they had a fleet of SMART cars in Seattle). She had by then sold the company and moved on. Anyway, one of her "visions" was the elimination of private vehicle ownership, with all cars, trucks, etc. being merely a "service" for which we would "pay as we go".

One of her justifications was the very observable fact that most cars, most of the time, are just sitting there taking up space. We build huge parking garages, parking lots, driveways and garages, and all of that for them - so they have a place to just sit. That was her vision that drove her original vehicle sharing company - less sitting, more driving, vastly reducing the infrastructure needed for them.

Very pragmatic, really, especially from the point of view of someone who sees cars merely as appliances. And let's face it - most people have that point of view. Relieve them of the maintenance, depreciation, and responsibility of owning a car, but still allow them pretty much unfettered access to one when they want it. A lot of people would go for that. Soulless bastards that they are...

Agree on every point Jeff. Imagine the infrastructure gained if urban centers adopted this model, staging areas for autonomous vehicles to whisk you from shopping to home, or to an event downtown involving alcohol. No more parking lots/garages or even street parking. No maintenance worries, just pay a subscription fee for the service and you are in. Game changer for most folks, sad days for the rest of us. To a point...where we are no longer trusted to drive our own car, then it is a real game changer even for us!

[stealthn]

Features as a service is one thing, but I think Car2Go had the best model but surprisingly they backed out of several markets. Here in Calgary it was super popular, cars everywhere, need to go somewhere just find the nearest one and go, park it anywhere (no parking fees) and your done. Not sure of a longer term use though.

[Mahler9th]

"Imagine the infrastructure gained if urban centers adopted this model, staging areas for autonomous vehicles to whisk you from shopping to home, or to an event downtown involving alcohol. No more parking lots/garages or even street parking. No maintenance worries, just pay a subscription fee for the service and you are in. "

The "future of urban mobility" area is a sweet spot for my new business partners and I. Several of them have already been heavily involved in this area, and we are connected to all of of the major players.

For example, Toyota has made great commitments:

https://www.cnn.com/style/article/ces-toyota-big-smart-city/index.html

And there are of plenty of what are for some, non-obvious adjacencies. For example companies in the advertising arena are already thinking about how to access "passengers" is some types of these future urban conveyances-- kind or like what we already have as advertising mechanisms in public transportation. Just the mid-21st century version.

And lest we not forget, the flying urban conveyances are coming along quickly... and there again, the opportunities are vast and deep.

Here is a manifestation of bets being placed:

https://aerospace.honeywell.com/en/learn/supported-platforms/urban-air-mobility

[Alan A]

I thought this was going to be about being a parent and a taxi.

[Arizona_928]

The only software I paid extra for was to my 18' cummins. A more fuel efficient dirty diesel.

[asphaltgambler]

Interesting, gotta say that the conventional revenue stream from new car sales, COD service and parts sales I believe has declined not only in percentage overall but also per car over the years.

When you think about it - it's already happened with our cell phones. You might own the hardware- but whomever owns the service that YOU pay for, they are the ones that have control.

[GH85Carrera]

I am hoping to keep driving for another 20+ years, but someday I know I will be too old to do so safely. I can embrace an app like a automated Uber. Just use my phone to summon a ride in a driver-less vehicle, and it will know where I want to go already from the app. It takes me there, and drives away. When I am ready to go back, another car shows up to take me home.

I can bet there will be the economy low end services, a mid range nicer and cleaner car, and the premium service. For the cost of my own cars, insurance, tags, title and taxes the IRS figures it costs 57.5 per mile to drive a car. No more garage space, no more cars costs except for when you want to be transported.

Maybe in 20 years for me. Until then, I will keep driving.

[flatbutt]

For urban, even suburban to an extent that would be an excellent remedy for congestion and land use. Where I live though, ex-urban / rural there might not be a good fit for that business model. At least not initially.

[1990C4S]

PPOT. Not exactly anyone's target market for the future of transportation.

Just the opposite.

[onewhippedpuppy]

I definitely see the value of car sharing services for heavily urban areas. When I travel I use Uber extensively, even when I have a rental car. Obviously as autonomous vehicles become more of a reality that only sweetens the proposition. But as someone who makes his money in aerospace, flying urban transportation is a long way off both from the standpoint of technology and financial viability. By the time any of these aircraft are FAA certified and then staffed by a pilot, the cost has moved well beyond what the average person can afford.

[Por_sha911]

I can see it happening. Look at Microsoft. Some of their programs are annual rentals and their operating systems are made obsolete so they can sell you more software.

[GH85Carrera]

Originally Posted by Por_sha911

I can see it happening. Look at Microsoft. Some of their programs are annual rentals and their operating systems are made obsolete so they can sell you more software.

Apple is far worse about that than Microsoft. I have a 10 year old PC running Win 10 just fine. Apple love to force updates, and make a brick of old hardware.

Of course all manufacturers do it.

[RWebb]

Apple is set to strong-ARM you

[wdfifteen]

Originally Posted by Jeff Higgins

I remember many years ago there was an article in Road and Track about the woman who founded the first urban car sharing program in the U.S. (I forget its name - they had a fleet of SMART cars in Seattle).
(snip)


One of her justifications was the very observable fact that most cars, most of the time, are just sitting there taking up space.

(Snip)

Very pragmatic, really, especially from the point of view of someone who sees cars merely as appliances.

You hit it on the nose every time. Plus, you italicized the name of the magazine. An educated man.

[widebody911]

Originally Posted by RWebb

Apple is set to strong-ARM you

Quite the inteligent pun