CARS ON DEMAND
Why internet is (slowly) killing car makers
June 2013 @ The Family 1
Who wants a car anyway ?
▲ Less cars
▲ Less kms driven
▲ Less driver licences
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Between 1992 and 2007, the number of 17-‐ to 20-‐year-‐olds who held licences fell from 48% to 38%, and for 21-‐to 29-‐year-‐olds, the number fell from 75% to 66%.
▲ More congestion in cities
▲ More taxes
▲ More tolls (urban or roads)
▲ More parkings and fines price augmentation
June 2013 @ The Family
Who wants a car anyway ?
▲ Service vs Ownership general move
▲ Some traditionnal services have been here for decades – Long term leases for corporate fleets
– Rent a car
▲ The Sharing Economy is coming – Collective optimisation of existing assets
– Internet enabler
– Some technologies converging : GPS, contactless Id, 3G…
▲ WORSE : the car as a status is dead ! – b€ spent in car advertising totally out of scope
– Ask your friends or kids friends !
3 June 2013 @ The Family
New mobility offers are appearing
▲ Long distance carpooling – Today, 5 million French are using carpooling* – #1 French carpooling service (Blablacar) was launched in 2004 now has 2
million registered users and recorded 150% of growth during the last 4 years – European wide service now
▲ Urban mobility v1.0 : car sharing – Car-sharing services have spread throughout France since 1999 • Paris (1999), Strasbourg (2000), Bordeaux (2001), Marseille, Avignon (2002), Lyon (2003), Grenoble,
Chambéry, Annecy, Saint-Etienne (2005), Montpelier, Nîmes, Narbonne (2006), Lille (2007), Poitiers (2008), Toulouse (2009), Besançon (2010), Angers (2011), Tours (2011), Paris (2011), Metz and Nancy (2012)
– Many trials all over Europe and USA – Most successfull : Zipcar, bought out for 500M$ by Avis early 2013
▲ Urban mobility v2.0 : cars on demand – Autolib launched in December 2011 : already 15,000 members, with more
than 1 million trips completed – Car2Go by Daimler/Europcar in Germany, Austria, Netherlands, US and
Canada
– DriveNow by BMW/Sixt – Peer 2 peer services started : Buzzcar, Local motion
4 * source: BIPE
June 2013 @ The Family
June 2013 @ The Family 5
Cars on demand
June 2013 @ The Family 6 6
§ Cars available 24/7 § Always close to you § No stations : park anywhere ! § Everything automated for user
§ Cars geolocalized in real time § Reservation of cars online or
via Mobile App § Check-In and -Out of Cars
through Smartcard or Smartphone (24/7)
§ Membership/Community based § Usage corresponding to urban
inhabitants aspirations
§ Accessibility is key § Using parking spaces over-
and under-ground § No dedicated parking lots § Choice of spots: tbd
June 2013 @ The Family 7
Different mobility solutions for different usages
Example use case § Trip down-town § Opera visit § Visit a friend down-town § Shopping groceries for single-person
household
Solution
One-way: Possible city-wide
Example use case § Trip to recreation area § Visit a friend in suburbs § Shopping trip for family § Away game for amateur athletes
Solution
One-way: Not possible
Example use case § Holiday trip § Business trip for several days § Car replacement
Solution
One-way: Possible nation-wide
Duration: Half hours Duration: Hours / Days Duration: Days
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June 2013 @ The Family 8
URBAN SEMI-URBAN RENT A CAR
Booking channels Rental kiosks, call center, online Smartphone App, online Station, call centre, online, smartphone
Price structure Based on hourly rate + subscription fee Based on km Based on days
One-Way-Ability One-way availability within city between stations No one-way ability or high price One-way nationwide
Density Very dense => 1000 cars / city
Starting with specific amount of hot spots Objective to cover living districts in 5 min radius
>400 Stations nationwide
Minimum renting time 0,5 hour 1 hour 1 day
Cars 1 urban model only Economy/Compact station wagon Low Carbon Footprint All
Cars branded Yes Small branding No
Range Short distance / Electric vehicle Limited to the center of Paris and 46 communes within the Paris area
Nationwide unlimited Unlimited
Different business models
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June 2013 @ The Family 9 9
§ Implement a truly holistic “urban mobility concept”: Full continuum § Citizens of City would enjoy - Freedom: Wheels when they are needed - Flexibility: Choice of vehicle brand, type and size based on use occasion - Convenience: Vehicles on demand within walking distance
§ Further improvement of City image: Reduction of the carbon footprint and marketing of a “Greener Lifestyle”
§ Further benefits for the city : Reduced fuel consumption and traffic jams
Advantages for the City
?
Urban Mobilty Concept
A necessary continuum for a life without car ownership
Who’s playing ?
▲ Old guys are starting – Daimler and BMW in urban concepts
– Europcar (Car2go) , Avis (Zipcar), Hertz (Hertz on Demand) , Enterprise (Wecar)
– Daimler has started a more comprehensive approach (MyTaxi…)
– Failure of Renault/Better Place model
▲ New entrants…are not really here for cars ! – Bolloré : battery play !
– Tesla : still selling a car…but building its infrastructure
⇒ become Chevron instead of Ford ?
– Many « sharing economy » startups with Peer2peer models
June 2013 @ The Family 10
What’s next ?
▲ New technology – NFC, CAN bus readers, 4G… – Real time big data
▲ Sharing economy needs volumes – Availability – Profitability !
▲ On demand needs ability to « guarantee » availability – Challenging for pure peer2peer models , contrary to AirBnB
▲ Industrial models are expensive ! – 2€ of capital for 1€ of revenue when owning assets – ROCE low
▲ Need to integrate all public transport solution
June 2013 @ The Family 11
What’s next ?
▲ LET’S MIX TO BE USER CENTRIC – Real time availability
– Networked cars (and self-driving ?)
– All services encapsulation (cf ridescout in Austin, TX or Toowup in Montbeliard)
– Who cares who owns the car ?!
▲ BUT…
▲ Who will lead ? – Listening to users
– Inventive
– Fast to adapt
– Rich
June 2013 @ The Family 12
THANK YOU !
June 2013 @ The Family 13
June 2013 @ The Family 14
▲ Eurazeo Croissance supports high growth potential companies with a proven business model in their ambition to achieve the transformations they need to become established global players – International expansion, industrial/commercial investments, external growth,
etc.
▲ Focus on growth stories based on product or market disruptions, with a strong operational leverage
▲ Investment across selected industry categories driven by favorable trends – E.g. renewable energy, green chemistry, data sharing, e-commerce, etc.
▲ Acting as a reference shareholder in partnership with management
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June 2013 @ The Family 15
Eurazeo at a glance
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A LONG TERM INVESTOR
▲ Strong family and institutional structure
▲ Listed on Euronext Paris
▲ €4bn assets under management
▲ A pluridisciplinary team of investment professionals
▲ Deep network and strong track record
▲ Investment philosophy: accelerating and enhancing the transformation potential of companies
▲ Active support to portfolio companies
▲ Flexible investment horizon
3 OTHER INVESTMENT STRATEGIES ALONGSIDE EURAZEO CROISSANCE
for mid to large buyout
for SMEs buyout
for real estate