On-demand, electric and unbelievably fast. The next generation of transportation, part 2
Following my recent blog about driverless cars, I wanted to share a few further thoughts about the future of transportation. On-demand transport, electrification, and the Hyperloop were all major talking points at the Connected Car Forum back in May. Here’s why.
The end of car ownership?
Buying your first car has long been a rite of passage. And for many people, owning the newest car possible is an important status symbol. But the next generation of potential car owners will feel far less need to buy or lease their own vehicles.
Young adults, particularly those who live in cities such as London, see car ownership as outdated (see car ownership and drivers license holding by age above). Why buy your own car, suffer the depreciation, and pay for maintenance, insurance and parking when you will only use the car 5% of the time? Technology has enabled cheaper, more efficient alternatives. Uber is perfect for short journeys. And convenient app-based rental services, like Zipcar, provide a solution when a car or van is needed for a particular purpose, like a house-move or a trip to the beach.
As connected and self-driving vehicles continue to evolve, there will be even less need to own a car. People will use sharing apps to select a vehicle that suits their specific needs, from a luxury seven-seater for a long family journey to a cargo vehicle for moving furniture. The vehicle will come to the user by itself, take them to their destination and then head straight off to its next assignment. Congestion and parking problems will be reduced, and vehicles will be better-utilised, helping vehicle service operators to maximise their revenues and profitability.
Electric vehicles can keep our cities liveable
There is still debate the manufacturing process for electric cars and the environmental cost incurred, and the electricity the cars use is not always generated from clean sources. However, at the Connected Car Forum there was a strong consensus about the need for more electric vehicles in dense city areas, as a way to improve air quality.
There needs to be an orderly transition to electric propulsion. This is likely to include electric-only cars for use in cities and hybrid vehicles that can operate in pure electric mode in cities and switch to hydrocarbon fuel outside cities, to increase their range.
Demand for electric cars is developing quickly. Tesla, which already has a significant share of the electric market, has so far taken over 400,000 advanced orders for its Model 3. Set for launch towards the end of 2017, the Model 3 is expected to be priced at around £30,000, putting it head-to-head with many mainstream family cars.
Formula E, the all-electric motorsport series, is also working hard to add some sizzle to the electric car space. They have races in major city centres around the world, showing that electric cars can be fast and exciting. A number of major auto-industry companies are involved in the development of Formula E cars, using the series to develop and promote their electric car and powertrain technology.
Introducing the Hyperloop
Also presenting at the Connected Car Forum was Bibop G. Gresta, the visionary Chairman and COO of Hyperloop Transportation Technologies.
Hyperloop is aiming to develop a revolutionary high speed transportation system. The system will work by propelling capsules, containing passengers or cargo, through low-pressure tubes using linear induction motors.
Hyperloop capsules could attain speeds of up to 760 mph with minimal energy usage. The company plans to install solar panels on the outside of the tubes, potentially producing more electricity than would be consumed by the capsules, allowing Hyperloop to be a net electricity generator. As such, the Hyperloop will have the capability to reduce the cost and time of travel whilst also dramatically reducing carbon emissions.
There is little doubt that the way we travel and transport goods is set to change significantly over the coming years. And there will be plenty of opportunities for companies and investors to contribute to the change. If you have a company that is in this space, or if you have comments or thoughts on the above, I’d love to hear from you.
Miles Kirby — mkirby@oxcp.com