DriveNow Shaping the cities of tomorrow. Munich, October 18 th, 2016
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1 DriveNow Shaping the cities of tomorrow Munich, October 18 th, 2016
2 As a continual trend, more and more people keep moving into larger cities, creating densely packed urban agglomerations. Mexico City 20m 25m (+25%) New York City 20m 24m (+20%) Moscow 11m 13m (+18%) Shanghai 20m 28m (+40%) Beijing 16m 23m (+44%) London 8m 9m (+14%) Tokyo 37m 39m (+5%) Los Angeles 13m 16m (+23%) Sao Paolo 20m 23m (+15%) Rio de Janeiro 12m 14m (+17%) Buenos Aires 14m 16m (+14%) New Delhi 23m 33m (+43%) Manila 12m 16m (+33%) (%-Change) Shaping the cities of tomorrow October 18 2
3 Urban mobility is changing... Cities are growing and traffic is growing at the same time. Global megatrends Urbanization & Globalization Connectivity More cars More congestion Laws & Regulations Convenience Post-Materialism Mega Cities Individualization Demographic Change More parking pressure Shaping the cities of tomorrow October 18 3
4 Urban mobility is changing... Cities react by enforcing laws and regulations. Global megatrends Urbanization & Globalization Connectivity Laws & Regulations Convenience Post-Materialism Individualization Demographic Change Shaping the cities of tomorrow October 18 4
5 Urban mobility is changing... Using instead of owning becomes more popular. Global megatrends Urbanization & Globalization Connectivity Laws & Regulations It used to be that having your own car provided the ultimate sense of freedom for young adults. Convenience Post-Materialism The number of cars purchased by people aged 18 to 34 fell almost 30%. Individualization Demographic Change Shaping the cities of tomorrow October 18 5
6 Urban mobility is changing... Global megatrends. require new mobility solutions. Urbanization & Globalization Connectivity Integrated intermodal solutions Intelligent parking solutions Laws & Regulations Convenience Post-Materialism Location based services Flexible individual mobility solutions Carsharing Individualization Demographic Change E-mobility Simple mobility transport applications Shaping the cities of tomorrow October 18 6
7 As a reply on the question, how BMW and Sixt can benefit from these changes, they created DriveNow. DriveNow BMW is the leading provider of premium products and services for individual mobility Solution: Fully flexible premium carsharing Sixt is the innovative leader in the car rental industry, operating 20,000 rental vehicles in 105 countries Shaping the cities of tomorrow October 18 7
8 DriveNow has little in common with car rental companies or traditional carsharing providers. What DriveNow offers is flexible mobility on demand. Shaping the cities of tomorrow October 18 8
9 The DriveNow concept puts highest emphasis on simplicity and flexibility. Register online through website or via app Find nearest vehicle via website, app or smart-watch Optional: Reserve car for up to eight hours if needed Open car via member card, app or smart-watch End reservation via member card, app or smart-watch Park vehicle anywhere within business area Drive to destination of choice Type in pin-code to start the booking Shaping the cities of tomorrow October 18 9
10 We give our customers plenty of choice. They have access to a broad and diversified fleet of latest BMW and MINI vehicles. BMW 1 Series BMW X1 BMW Active Tourer BMW 2 Series Convertible BMW i3 (EV) MINI Clubman MINI Cooper/Cooper D MINI Cooper Convertible Shaping the cities of tomorrow October 18 10
11 In terms of market coverage, we are available in 11 European cities so far. MUNICH, DE BERLIN, DE Launch in 06/2011 Launch in 09/ vehicles 2 1,200 vehicles 3 158,000+ customers COLOGNE, DE 205,000+ customers HAMBURG, DE 4 Launch in 10/2012 Launch in 11/ vehicles vehicles 70, , customers customers LONDON, UK COPENHAGEN, DK Launch in 12/2014 Launch in 09/ vehicles vehicles 21,000+ customers 30,000+ customers DÜSSELDORF, DE Launch in 01/ vehicles 46,000+ customers VIENNA, AT Launch in 10/ vehicles 70,000+ customers STOCKHOLM, SE Launch in 10/ vehicles 12,000+ customers BRUSSELS, BE Launch in 07/ vehicles 6,500+ customers MILAN, IT Launch in 10/ vehicles Shaping the cities of tomorrow October 18 11
12 Performance figures prove the success of our concept. We have increased our market leadership in Germany. Station-Based Carsharing Customers Germany Free-Floating Carsharing Customers (incl. DriveNow) Market Entry DriveNow Market Share % 39 % % % 66% % 40% 57% Source: Bundesverband CarSharing (2016) Shaping the cities of tomorrow October 18 12
13 Our aim: Jointly create a better and more sustainable mobility mix and ultimately a more livable city. Status Quo Tasks: Reduce amount of cars Increase utilisation Vision Reduce emissions Shaping the cities of tomorrow October 18 13
14 Roughly 1 out of 10 DriveNow customers have abolished their private vehicle ever since joining our service % Total number of DriveNow members in Germany Those who had a private car when they signed up Those who have abolished their private car ever since signing up Those who have abolished their car because of DriveNow in the first place Sources: Customer research (n = 2.888) / Actual customer data (both from 2015) Shaping the cities of tomorrow October 18 14
15 But it s not only the substitution of vehicles. It is also the vehicle type and the vehicle utilization rate, that have improved through our service. A large number of high-emission vehicles are substituted through 1 brand new, low-emission or zero-emission vehicle which is 3-5 times better utilized than privately owned vehicles. Up to 300 min. 60 min Privately Owned Vehicles Shared DriveNow Vehicles Sources: Customer research (n = 2.888) / Actual market data (both from 2015) Shaping the cities of tomorrow October 18 15
16 DriveNow has encouraged flexible intermodal mobility and eventually, has boosted bike usage, walking and public transportation. - Modal Split of non-drivenow customers - - Modal Split of DriveNow customers - 23% Bike/ Walk Public Transport DriveNow 24% Bike/ Walk 10% 21% 35% Private Car 56% Private Car 31% Public Transport Sources: Customer Survey (2014) / Market data (both figures exemplary for the City of Duesseldorf, Germany) Shaping the cities of tomorrow October 18 16
17 Several independent studies all prove substitution effects of free-floating Carsharing. Study Number of privately owned vehicles abolished due to each single car sharing vehicle EVA-CS-Studie 3,6 7,8 Freefloating: Optimistic Scenario Freefloating: Conservative Scenario WiMobil-Studie 5,9 Berkeley-Studie 9 13 Eigene Studie 6,3 Wien-Studie 2,8 7,1 Results of all studies published 2015/2016 Shaping the cities of tomorrow October 18 17
18 Further positive effects on parking pressure, road congestion and multimodality were certified across all markets and studies. Study Further positive effects of free floating carsharing 41 Million km/year less driven (station-based: 10 Million km/year less driven) Carsharing and public transport complement each other At least parking spaces freed up 12,150 m² parking spaces freed-up Carsharing and public transport complement each other Average CO 2 emission much lower than of privately owned cars 44 Million km/year less driven (station-based: 2.9 Million km/year less driven) 85% of customers are public transport subscribers Carsharing and public transport complement each other The effects on public transport are positive Carsharing users show a significantly higher modal split as non carsharing users 84% of customers use public transport on a regular basis Utilization of car sharing cars up to 500% higher compared to privately owned cars Shaping the cities of tomorrow October 18 18
19 To intensify the sustainable effects, we have added EV to our fleets since 3 years. Thus we carry E-mobility into the urban society. Customers 6+ Million kilometers were already driven electric at DriveNow 200,000 customers took their first trip in an EV with DriveNow 6,000+ customers have driven at least 10 times with the EV We create appreciation for electromobility in the urban society! Vehicles In Copenhagen, 85% of all chargings are done by our customers 20% of our fleet is electric The hightest amount of rentings per EV per day are 17 times The utilization of our electric vehicles is almost as high as of our combustion vehicles! Shaping the cities of tomorrow October 18 19
20 In order to expand the urban charging infrastructure we give municipalities the possibility to visualize frequency of use and allocation of our cars. Data analysis of start/end points of DriveNow drives Acquisition and analysis of DriveNow data Car demand (pick-up and drop-of) and hot spots Indication for ideal charging infrastructure spots Data show highly frequented zones for start/end of drives Targeted investments in (speed) charging stations Data allow expensive investions to be deployed effectively Munich measurements on electromobility Further charging locations also base on DriveNow data Shaping the cities of tomorrow October 18 20
21 Sebastian Hofelich Managing Director DriveNow GmbH & Co. KG Seidlstraße Munich
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