The transportation industry is taking it up a gear. The value chain is no longer delineated by traditional players and their skill sets —instead, a more holistic mobility ecosystem is developing. As part of this evolution, there are several players vying to build a strong position from incumbents such as original equipment manufacturers (OEMs) and tier one manufacturers to “new-school” tech-startups and opportunistic venture capitalists.
As part of this battle to gain a foothold, it is estimated that the industry as a whole invested $120 billion in the last 24 months with investors pouring in over $220 billion into more than 1,100 companies since 2010.
So what trends are these investments following, and, where are the large, traditional mobility players placing their bets? These are the four emerging mobility trends:
Trends Taking Over Mobility
3. Connected Vehicles
Source: Future of Data Privacy Forum
4. New Mobility Services and Business Models
Why these trends? It is where the money is going. Over a third of the total global funding went to US based companies, followed by China and the UK, whilst it is also interesting to note that the top investors also came from similar countries (US, China, and Japan).
However, these figures may be slightly skewed due to M&A investments and large checks from funds such as Softbank, who invested over $30billion dollars in the mobility sector to date!
Mobility Startups Disrupting the Traditional Value Chain
Faxi is an incentivized carpooling app targeting corporate organizations. Through the app, users can find and connect with colleagues who share the same route to work and commute at similar times. It allows companies to verify employee carpooling in real time and to offer incentives and rewards such as priority parking.
With goals of reducing single occupancy vehicles, congestion, and emissions, it is not surprising that Faxi has just received significant backing from Toyota Financial Services following pilots in 2018.
TWAICE is in the business of predictive battery analytics software. The German company allows its customers to develop and use battery systems more efficiently and sustainably while making them more reliable and durable.
Precise predictions of battery aging significantly optimizes battery development as well as potential use cases. This can be shown through some of TWAICE’s customers: battery manufacturers, OEM’s, fleet managers, financial solution providers (to optimize second life battery applications), as well as energy providers.
Valerann is aiming to transform existing road infrastructure into a veritable platform for traffic data. They provide a wireless, sensory IoT system that spits out information about everything that takes place on the road in real-time. This data can then be used to detect risks, prevent accidents, optimize intersections, automate traffic control centers, and support connected and autonomous vehicles. And, get this —theoretically, it can be retrofitted to any road today!
Valerann has worked closely with a RocketSpace London Campus member, Zenzic, who is channelling £200m of government and industry funding into connected, self-driving vehicle testing and development in the UK. The goal is to secure the position as a leader in the UK for the self-driving future.
4. CLEVR Mobility
CLEVR is offering a three-wheeled scooter that can be fitted with a seat to make it viable for all. But, the company's real secret weapon is a super-precise GPS tracking module that is accurate within three feet, which allows CLEVR to know where the scooter is going and modify the scooter's top speed.
The team is developing a real niche within the crowded space of micro mobility, so it will be interesting to see how they create their mark with the bigger players!
CARMERA, an alumnus of the RocketSpace Mobility Tech Innovation Collaborative, provides real-time 3D maps and navigation-critical data for autonomous vehicles as well as 3D scene reconstruction and site analytics data for professionals in architecture, construction, real estate, and other built environment segments.
Founded in 2015, CARMERA hails from hipster Brooklyn and has picked up $27.1 million in investments with a recent $20 million Series B in August 2018 lead by Google Ventures.
The Future of Mobility
These startups demonstrate the breadth of the mobility ecosystem as well as the increasing maturity of investments within the space. The future of mobility is certainly connected, simplified, and, most importantly, customer-centric!
Could a mobility startup help transform your business? Are you a mobility startup looking to accelerate your growth through corporate partnerships?