OEMs, meanwhile, are partnering with mobility startups in anticipation of a future of reduced car ownership. For instance, Toyota Motor Corp has invested $1 billion in the ride-hailing app, Grab, while General Motors Co. has invested in ride services firm Lyft.
Overall, we observe concerted public-private participation in mature markets to enable seamless mobility. This gives the enormous potential for all ecosystem players to work progressively on combining autonomous driving and connectivity-based revenues through the delivery of mobility services.
As mobility matures, a vehicle becomes an office, a meeting room, and a device—all rolled into one and talking to each other, introducing a plethora of opportunities. The emergence of ride-hailing and ride-pooling initiatives have already changed the contours of shared mobility. As government regulations catch up and per-unit travel cost comes down through optimal utilization of resources, this sector will flourish. From a business standpoint, mobile-app based services will face a serious challenge scaling up to cover a broader scope of interactions from sectors and suppliers currently non-existent.
Gaurav Suman, General Manager - IT Wholesale, Daimler South-East Asia.
2. The insurance conundrum
To support AV and connected future, insurers are constantly re-evaluating their business models. For instance, insurers in the US have come up with a usage-based or pay-as-you-drive (PAYD) model whereby costs are dependent upon vehicle type measured against time, distance and place. Coupled with the advancement in telematics, drivers can have flexible premium fees, with optional value-added services such as tracking of stolen vehicles.
The advent of autonomous vehicles does not signal the death knell for the traditional automobiles. There is still going to remain a hybrid market from traditional cars to semi-autonomous to fully vehicles.
Raghavendra Vaidya, Senior Vice President- IT, Mercedes-Benz R&D, India
Overall, there is a host of challenges for incumbents and startups to collaboratively resolve.
3. Automotive Cybersecurity – Mounting threat surfaces
With connected vehicles, evolve a software-centric ecosystem. Historically isolated in-vehicle components are now becoming part of a network. Furthermore, as V2V communication gains traction, a susceptible system in a car can put every vehicle in proximity at risk.
From ECUs to the federally mandated OBD-II port to infotainment systems, potentially vulnerable threat surfaces continue to expand.