Mapping People Mobility 🧩
With 90% of Parisians (who went to the polls) voting against free floating eScooters in the streets of Paris, the city has seen in under 5 years the rise and fall of what was then a revolution in micro-mobility. Regardless of your take on the decision, this development is a clear indication of the significant shifts occurring in the mobility market đź›´
Let’s face it, the traditional mobility industry has been a bit of a gas-guzzling, carbon-spewing behemoth for far too long. As the world wakes up to the urgent need for greener transportation options, we’re seeing a seismic shift in the way we move goods and people.
In fact, the green mobility sector has been gaining serious traction in recent years, with VC investments skyrocketing and accounting for over 60% of all Climate Tech investments globally in 2020/2021 (PWC) 🌱 And with the overall transport industry responsible for almost a quarter of the EU’s greenhouse gas emissions, with no sign of decline from 2013 to 2019 (EEA) it’s clear that change is not just desirable, it’s essential 🚦
The movement of people has always been a subject of innovation and lively debate. After all, getting from point A to point B is an integral part of our daily lives, whether it’s commuting to work or exploring new corners of the world. Throughout history, we’ve seen countless advances in the field of transportation, from the invention of steam engines to the development of air travel. And with new work models like remote work becoming increasingly common, mobility is more important than ever.
🔴🟠🟡 At 360 Capital, we’ve identified 5 key areas of the mobility value chain that are critical to understanding this dynamic and fast-evolving industry. From urban planning to fleet operations, from local transport to international travel, they represent the building blocks of the mobility ecosystem.
Buckle up, because we’re about to take you on a ride 👇🏼
- Planning & Design: Laying the ground work from eScooter to flying vehicles
- Performance Improvement: Tackling the electrification challenges at scale
- Emerging Consumption Models: Changing use
andownership through shared models - Circular Economics: Ending programmed obsolescence, transforming sales.
- User experience: Onboard experience of riding & driving, redefined.
#1 — PLANNING & DESIGN
Data-driven planning
As mobility solutions multiply, so does the available data. But fear not, for those who seek to make informed decisions and collect insight into the industry — from private companies to operators, municipalities and urban transportation providers- a multitude of tools and data visualisation SaaS are at your disposal. Planning the next move (for B2G and B2B) is crucial to assessing feasibility and rentability, while ROI and social inclusivity remain the guiding stars.
Designing greener products
Bikes, scooters, mopeds, and cars have long been part of the urban fabric, but startups are taking up the challenge to revolutionise them with electrification, cutting-edge design, and increased capacities. With players launching hardware and IoT ventures, augmented cars are quickly becoming the new norm, thanks to an integrated tech stack of Lidars and Radars(🔴🟠🟡 Innoviz Technologies & Arbe), Computer vision, Smart Data Management, car/bike OSs. We believe the IoT and software layers are the key to creating greener, liveable cities.
Shooting for the moon and soaring to new heights
Looking beyond the hustle and bustle of city traffic, there’s a whole new frontier waiting to be conquered in the realm of medium to long-haul mobility. One commonplace is to promote using trains instead of planes for medium length trips. The little disrupted rail industry is starting to be served by enablers to make railways more appealing to the general public by cracking down on technical issues — and hence delays. Though this is a necessary step to assist the oligopolistic rail industry, some are betting on new planes. Enter eVTOL and eSTOL aircrafts, deemed to be champions to the fight against fuel-intensive transportation. However, with a long time-to-market and a need for deep pocket investors to follow the projects, it’s not something we can expect in the immediate future.
#2 — PERFORMANCE IMPROVEMENT
Matching performances — key to adoption
Beyond electrification — which is the main challenge of existing and upcoming fleets of vehicles- lies the Holy Grail of mobility: power, speed, and reliability. The race is on to develop cutting-edge technology that can deliver these much-coveted attributes at similar level to thermic/standard vehicles. All parts of vehicles are being developed, from spare parts to electric drivetrain technologies (Newtwen).
Changing the status quo on batteries
While commercial vehicles might be feeling a bit left out of the battery innovation party. Riding the wave of states grants for vehicle conversion, startups are sprouting around bike and cars electric retrofit. However, this can only by a transition market as all vehicles sold are bound to be electric by 2035 in the EU. The market is now mature with companies developing new technologies that change capacities and charging abilities, while reducing costs and rare materials. And as for battery end-of-life? No worries, there are players emerging to make sure that we can assess old batteries performances.
Charging: the lifeblood of tomorrow’s cities
Competition in the EV market is getting as intense as a power surge. However, EVs and charging stations are yet to spread their wings in all parts of Europe. Thus, the race for market share, direct customer access, and premium locations is as fierce as a lightning bolt. Infrastructure is set to become one of the most coveted industries, with players investing huge amounts of capex. Startups like Electra were first juiced up by VCs and later charged by conventional players. While charging stations may remain a non-startup business, providers of data analytics have sparked up around charging operations, disrupting access to solutions.
#3 — EMERGING CONSUMPTION MODELS
Electric vehicles evangelisation: the end of Free Floating?
In 2018, the demise of Autolib didn’t stop the little differentiated free floating market to blossom — bypassing rising risks of safety, economic viability and most of all regulatory crack down. These companies sure did evangelise the market for new products and new uses, for example in suburban areas underserved by public transportation, or to replace cars rotting in a way too expensive parking garage in Paris. Consolidation waves are coming.
Classic models, new vehicles
Company cars, long term leasing (LOA) and short term holiday rent are nothing new to the tech scene —but the integration of electrified vehicles sure is. We’re talking subscriptions for employee and personal eBikes /eMopeds, as well as personal eMoped or ebikes, to benefit from State Bonuses, ditch complex insurances and bike and stealers to make it as accessible as possible — same goes with long term leasing models for cars. Ride-hailing companies have consolidated (2015–2020) to try and become super apps, while new verticalised solutions are popping up left and right. We've got hydrogen cars, ride-hailing for kids, women, and even bicycle taxis! It's like a candy store for mobility enthusiasts.
Sharing is caring
With ride hailing and free floating facing growing regulatory challenges and taking up most of fleets in cities, the sharing economy’s new touted model is getting digitalised to share rides, cars, planes and more. Challenges in the field arise as to insurance policies, optimisation of sharing routes and integration of short distance carpooling.
#4 - CIRCULAR ECONOMICS
What goes around, comes around
As we’re all trying to pedal towards a greener future, it’s important to remember that recycling and refurbishing can also give a new lease on life to two & four-wheeled vehicles. With the rapid pace of technological innovation, it’s no surprise that new models are coming out faster ever. To keep up, marketplaces for used cars, bikes, and mopeds are popping up like mushrooms after a rainstorm — 🔴🟠🟡 We were proud investors of Aramis Auto- The goal here is to find the right tradeoff between operations and decentralised models. And if you’re worried about wear and tear on all those shiny new materials, fear not! Insurers are getting in on the game, offering digital protection and precise assessments for all types of mobility.
Corporates take the wheel: driving towards a new era
As business cars and professionals using vans on their shift represent the majority of fleets —corporates are facing a great challenge to make the transition to electrification as smooth, cost efficient, gast and impactful as possible. Companies in the fields, both from the employer and the employee side are leveraging operational networks to maximise fleet management and engagement (from mobility as an employee benefit to finding the right car for the right employee).
Transparency and choice: the extra mile
Multiple ticketing aggregators are changing the game by allowing users to seamlessly combine various modes of transportation. Whether it’s a business conference or a family vacation, these platforms are enabling a true multimodal experience. By reducing costs and increasing efficiency, these aggregators are not only making travel more accessible but also more sustainable by raising awareness on carbon emissions. As these platforms continue to grow, like Booking in the hotel industry, only a few players will be able to emerge as regional leaders.
#5 — USER EXPERIENCE
Safe is the new fast
Despite having a personal car being less useful in urban areas with increasing traffic and environmental concerns, road safety remains a top priority for all modes of transportation. With the rise of shared mobility and autonomous vehicles, the focus on safety will only continue to grow, ensuring that all aboard can travel with peace of mind. Hence, hardware/software (🔴🟠🟡 In&Motion) startups are supercharging commuters, that have a better experience with driving thanks to disrupted access to drivers’ licences.
To Waze or not to Waze
From the traffic mayhem to the EV revolution, navigating the urban jungle has been increasingly difficult. While private MaaS solutions have trouble coming through, we’re seeing vertical solutions serving new pains on the markets: charging stations routing and booking, parking spot finding, road sharing. We think these solutions are a necessary layer to enable a mainstream use of new vehicles.
Inclusive Mobility
Diversity takes on two meanings: diversity of vehicles, and those who drive them. With the development of futuristic flying and rail technologies that move humans faster than ever, and the use of electricity to power them. Along with this comes the resurgence of train travel, as regulations change and redefine the journey as a desirable mode of transportation. Finally, startups are stepping up to address the needs of persons with reduced mobility and medical transportation, with ERP systems to better manage ambulances and support those for whom navigating a city isn’t as easy as a stroll in the park. It’s an exciting time for mobility.
Are you in for the ride?
As the mobility industry continues to evolve and mature, we at 360 Capital believe that we’re entering a new phase of the Mobility stack. After the micromobility boom and rush to EV technology, we’re always on the lookout for new growing businesses in the adoption of electrified vehicles stack.
💌 If that sounds like what you’re building, and you think you’re driving innovation of processes or technology in the mobility of people field, please reach out to julia@360cap.vc
