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Published by:
Stanford Business School (2017)
30 June 2017
34 pages
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This paper compares different types of shared mobility solutions, in particular carsharing and ride hailing, the two most prevalent forms today. It describes the major trends prompting OEMs to engage in the mobility industry, such as urbanization, shifting consumer preference from 'owning' to 'sharing', and various technological advances. With that understanding in mind, the authors examine the current state of the shared mobility industry in more detail, taking a closer look at growth, profitability, and strategies for the different solutions. The study also considers the impact that highly automated vehicles might have on these mobility businesses, and suggests that carsharing will ultimately fold into ride hailing. Based on those analyses, the paper discusses forward directions for automakers, such as investments vs partnerships, criteria for market selection, and synergies with other industry trends.
Learning objectives:
1. The purpose of this case is to provide an overview of the changing dynamics in the personal transportation industry. 2. To develop an understanding for the different strategic directions automakers can choose to claim their position in the evolving field of shard mobility.
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