What will mobility mean for the traditional company car?

Fleet Live 2018 will examine alternatives to the traditional company car, with an in-depth look at the future of mobility.

Christoph Domke, a director in KPMG’s Global Strategy Group, considers mobility to be a new industry, with the power and momentum to shake-up personal, fleet and freight transport in the same way that mobile phones transformed personal communication, and Netflix and Spotify changed popular consumption of entertainment.

“Mobility is not the transportation and automotive industry that we have known for years,” said Domke, who will be speaking at Fleet Live 2018.

“It’s a new industry with a lot of new players – established OEMS, automotive companies, suppliers, transportation businesses, fleet management, plus TNC (Transportation Network Company) players, connectivity, energy companies, charging infrastructure, alternative powertrains, financial services and insurance. Everyone sees new revenue streams and a way of disrupting established companies.”

Identifying which disruptors have long-term futures and which are flashes in the pan is far more difficult to forecast, even if the direction of travel seems clear.

Urban areas are increasingly desperate for solutions to congestion and pollution, while broader indicators reveal a declining interest in private cars as the default option for travel.

There has been a sharp drop, for example, in the number of men in the UK aged 17 to 20 with a driving licence, down to 33% from 50% in 1990, and research by KPMG suggests nearly 60% of 18-to-24-year-olds believe drivers will no longer want to own a car by the middle of the next decade.

This trend has seen major vehicle manufacturers invest in a host of start-up incubators and new service providers to ensure they have all bases covered, said Domke. None wants to see a new player gain a significant early mover advantage in any new sector, in the way that Tesla managed to forge ahead in electric vehicles.

The result is a series of investments in the straightforward and understandable, such as car sharing and electric battery storage solutions, as well as the more outlandish. Last year, for example, Daimler invested more than €25 million in the flying taxi firm, Volocopter.

Domke forecasts that two or three major manufacturers will no longer be in business in a decade’s time, having lagged behind the mobility curve, although which ideas and concepts prove fruitful and successful is still far from evident.

On the demand side, this future may sound like science fiction to fleet decision-makers, but strategic decisions already demand consideration.

“Infrastructure is important,” said Domke. “Where are you going to put warehouses? You are going to need charging infrastructure outside. And probably a big forecourt because you will have a lot of autonomous trucks moving around.”

Meanwhile, established inner city facilities will need upgrading with charging facilities and connectivity technology, he added.

Fleet Live 2018, which takes place at Birmingham NEC from October 9-10, will cover all aspects of fleet management from the future direction of company cars and emerging vehicle technology through to practical, hands-on advice relevant to today’s needs.

It provides an exciting industry business forum consisting of interactive exhibitions, best practice workshops, breakfast seminars, daily debates and networking opportunities. Fleet Live 2018 is also perfect for non-fleet managers such as HR, finance, procurement and facilities management professionals, who will be able to receive expert guidance thorough one-to-one advice clinics.

In terms of mobility and technology, here’s a snapshot of some of the alternative mobility solutions that will be shown at Fleet Live.

Alphabet The leasing company’s AlphaElectric assists fleets to switch to electric vehicles, while AlphaCity is a corporate car-sharing solution.
Arval A suite of new products, including Arval Car Sharing and Arval Electric Vehicle Offer, are due for launch, offering EV solutions as well as alternatives to pool fleets and company cars.
LeasePlan The international leasing company’s Subscribe and Drive is an all-inclusive subscription service for periods as short as three months. The monthly rental includes car, service, maintenance and tyres, as well as insurance.

For more information on Fleet Live 2018 and to reserve your complimentary place, click here.