E-MOBILITY SERVICES New economic models for transport in the digital economy Claire Weiller Institute for Manufacturing University of Cambridge NEMODE Case Study Presentation 4 th March 2013 1
Outline 1. Literature 2. Case: Autolib service 3. A multi-sided platform 4. The role of ICT 5. Opportunities 6. Conclusion 2
Theoretical perspectives Practice-Oriented Fields Competition policy Regulation Innovation International Energy Policy Retail electricity markets Electric Vehicles Plug-in electric and hybrid electric private vehicles Environmental impacts Technical characteristics Emerging applications: Storage, V2G Consumer behaviour Management Theory Technology diffusion Determinants of industry structure Entry Industrial Organisation Evolution of firms in industries PhD Literature Business Model Innovation Value proposition, capture and delivery Business models Industry architectures Platforms Services
Autolib 1740 cars 729 stations 47 municipalities 53,911 subscriptions 19,134 annual 147 recharge-only Year Shared subscription for 4 users Month 7 Days 24 Hours (16h/month) Subscription 12/month 30 15 10 165/month 1st half hour 5 6 7 7 7,5 beyond the 16h 2nd half hour (pre-june 2012) 4 5 6 6 -
Supply ecosystem Capital finance Vehicle Battery Charging infrastructure Electricity supply O&M Logistics Customer services
Competitive space EVs Product Conventional Customer Private Corporate x Move About x Carbox (FR) x x Zencar (BE) x Autolib (FR) x Zipcar x GreenShareCar (AU) x Car2Go (DE) x AlphaCity (UK) x Hertz 6
Bollore s platform A platform, or multi-sided market: End-users & municipalities Potentially others Capital finance Governance Vehicle Battery Electricity supply O&M, Logistics Data manag ement Website Billing Call centre Vehicles Charging infrastructure Customer service
A network market High sunk costs Limited replicability Vertical integration Monopolistic Undifferentiated product Single provider Positive consumption network effect (Geographic expansion) Without: High switching costs (?) True competition: public service! Sources: Katz & Shapiro, 1996; Evans, 2003; Gawer & Cusumano, 2002; Armstrong, 2006 8
ICT 1: Value proposition In-vehicle Parking reservation Online reservation Smart-phone app
ICT 2: Value creation and capture Data management and optimisation User data Smarter energy applications?
Strategic opportunities Battery technology Energy storage R&D synergies with other uses IP/ Licencing value (OEMs) Commercialisation of their EV Knowledge and experience
Electricity storage The market for energy storage is estimated at $500 bn. (Managing Director, Autolib ) EVs could have the role of a load controllable on demand, that could uptake the extra energy to stabilize the grid (David Newbery, Prof. of Economics, Cambridge) 12
Synergies for battery R&D Nickel Metal Hydride Lithiumion Lithium metal polymer battery Graphene supercapacitors? Source: Rockwood Lithium report, Investor Day, 17/01/2013 13
Conclusions E-mobility services example of an ICT-enabled business model Long-term strategic opportunities in the EV sector incited Bollore to enter a loss-inducing project The service as designed in Paris exhibits characteristics of a network market. But to become a true platform, the system would have to enable competition in vehicle supply/access 14
Implications for theory Business model innovation for complex service Shift to mobility services must be complemented with value-added propositions New technology introductions facilitated by government and single-provider platform economics 15
Acknowledgements Supervisors Interviewees Funding Prof. Andy Neely, Supervisor Dr. Morald Chibout, DG Autolib Dr. Chris Pearson, Program Coordinator, Cambridge Service Alliance Mr. Christophe Aglietta, Syndicat Mixte Autolib' St Catharine s College, Cambridge