Chart of the Month by Silicon Valley Mobility for July 2020 – Shared mobility is here to stay
A client recently asked if it is about time to drop the “S” in “ACES”. The underlying question was if shared mobility actually has a future in light of the 2020 crisis with people concerned about sharing and no one traveling anywhere. So here is my answer:
As the chart summarizes, analysts still see double digit growth for shared mobility in recently updated revenue forecasts for 2025. The market is largely driven by ride hailing, i.e. services like Didi, Gett, Uber, etc. Micro mobility (scooters and bicycles), which operate with relatively low fees, have surpassed car sharing in global revenues in 2019. While ultimate conclusions should be done with caution, it seems possible that car sharing might not remain in key market through the 2020s.
Such trends emphasize that consumers increasingly appreciate mobility “access over ownership”, i.e. services are key. That does not however automatically mean “sharing” as e.g. ride hailing is not really a shared trip.
Given those observations, one might want to use “commoditization” instead of “shared mobility”. In that sense – yes, we might drop the “S” in “ACES” and replace it with another “C”. That would make it “ACEC”, which does not roll off of the tongue nicely.
Thoughts anyone?