Future of Mobility: Corporate Carsharing

Continued Growth in Traditional Carsharing & Fleet Markets Leading to

Convergence & New Mobility Business Models such as Corporate
Carsharing

Martyn Briggs
Programme Manager, Mobility
Automotive & Transportation
18th March 2014

© 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
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 Today’s Presenter

http://www.linkedin.com/pub/martyn-briggs/24/346/76b
Martyn Briggs,
Programme Manager –
Mobility http://twitter.com/BriggsMartyn

Frost & Sullivan http://twitter.com/frost_sullivan

http://twitter.com/FS_Automotive

Bio: Experienced Automotive & Transportation consultant and Project Manager,

responsible for Frost & Sullivan’s Mobility Research & Consulting initiatives. I have
over 8 years of relevant experience in urban mobility, transportation policy, strategy
and evaluation in particular.

Specialties: Urban Mobility & New Mobility Business Models, Smarter Transport,
Intelligent Transport Services, Transport Economics

Particular expertise in: Carsharing, Mobility Integration, Demand Responsive

Mobility, Transport & Mobility Policies, Transport Planning, Behavioural Change
and Transport Scheme Appraisal
2
Poll Question

What do you think was the highest growing carsharing market 2012-2013?
A. Germany

B. France

C. USA

D. UK

E. Italy

3
Focus Points of Our Presentation Today

1. Growth in the Global Carsharing Market

2. Convergence of Carsharing, car rental, and fleet leasing

3. Definition of Corporate Carsharing – What’s included & Excluded

4. Key Drivers & Challenges Impacting Corporate Carsharing Growth

5. Key Corporate Carsharing Players

6. Industry Convergence Opportunity

7. Key Growth Forecasts

8. Corporate Carsharing Outlook 2014

9. Annual Urban Mobility Workshop

4
Briefly Discuss Occasion for the Analyst Briefing

• Urgency of the topic:

• Set against improving fleet management & telematics technology, and increasing customer
demands towards mobility, the carsharing & fleet leasing business models are increasingly
converging as a standalone business proposition termed corporate carsharing – there were over
13 such providers in 2013

• Newsworthiness of topic
• With the incumbent providers witnessing growing take-up rates for corporate carsharing, and
having identified several benefits of using the service, corporate carsharing has the potential to
change the way company cars are perceived, providing all inclusive offerings and perks to
employees through enabling access to premium vehicles.

• How this will affect the participants

• Whilst the increased visibility & reporting have the opportunity to reduce absolute fleet volumes
required, it is likely that corporate carsharing could lead to increased lease vehicle demand,
through accessing new customer groups rather than just senior/sales staff eligible for company
cars. There are also likely to be several new market entrants and investment in 2014-2016.

• What will the audience learn

• The growth of the carsharing & fleet leasing market, converging into a new corporate mobility
offering, as well as understanding the trends, benefits, key players, and implications of the growth
of corporate carsharing specifically.

5
2013 Carsharing Market Highlights
M&A, city expansion, and carsharing business model diversification are underpinning continued global growth

Europe
• New CSOs: Citeecar starts low cost carsharing, & Ford2go in Germany
• M&A: VW acquires 60% of Greenwheels, Avis & Zipcar
• Growth in Italy carsharing (19,000 members 2011 to over 130,000 in 2013)
• Expansion of “one way” carsharing (e.g. car2go, DriveNow, Twizyway, Enjoy, Autolib)
• Growth in Corporate carsharing (carbox, AlphaCity, Shareyourfleet)
• Considerable growth of EV carsharing – Autolib increase from 1,800 to 2,000 vehicles

North America
• Avis acquires Zipcar for $500m & plan to grow through franchise model
• Enterprise continue acquisition of CSOs – iGo, Phillycarshare
• Bollore Group set to offer Autolib style 500 EV one way carsharing in Inidanapolis
• Relay Rides acquired Wheelz
• Expansion of car2go & DriveNow (combined account for ~30% of US members)

Asia
• Growth from 250k – 600k 2012-2013 across the region
• Growth in Japan in particular (Orix & Time with over 300k members)
• Launch of Kandi “vending machine” in China
• OEM launches by Nissan (Choimobi Japan) and Hyundai Kia (EV Carsharing Korea)

6
Continued Growth of Carsharing Globally
2013 saw the carsharing market rise to ~3.5m members and ~80,000 vehicles, with growth experienced in all
regions; 2014 will see continued investment and international expansion of the largest players

Global Carsharing Members, 2006-2013 Carsharing Outlook 2014

• Continued Expansion: Frost & Sullivan forecast
that carsharing members will grow to ~5m in 2014
• Car2go, 5-10 new cities & >1m members
• DriveNow >20 cities
• Zipcar 15 new cities through franchising
• Service Diversification: Continued innovation of
the carsharing business model expected into new
niches
• car2go Black two way rentals
• Hybrid of traditional, corporate & P2P
expected
• Technology: Reduced hardware cost & increases
smartphone penetration (e.g. Continental Virtual
Key)
• EV Carsharing: Above market average penetration
of EVs in carsharing
• Autolib Paris expansion in Paris & Bollore
international growth (US & UK in 2014)

7
Car Sharing in Italy
2013 saw significant growth in the Italian carsharing market – there are now over 100,000 members in Milan
alone; car2go doubled their fleet size there and are set to follow with Rome and 3 further cities

Milan Trento Italy Carsharing Growth

Car2Go, Enjoy, GuidaMi Car Sharing Trentino
and eVai with 1280 cars with 13 cars Year Members Vehicles
Users: 108000 Users: n/a
Turin 2011 19,000 620
CarCityClub Venice
with 123 cars Car Sharing Avm
Users: 2380
2012 30,000 800
with 47 cars
Users: 3956
Genoa
2013 130,000 1,800
Genova Car Sharing Bologna
with 51 cars Car Sharing Atc
Users: 2298 with 37 cars
Users: 1117 Soon in the market:
Florence
Car Sharing Firenze Rome • March 2014: car2Go in Rome with 500
with 17 cars Car Sharing Roma Smart
Users: 585 with 117 cars
Users: 3261 • May 2014: Twist in Milan with 100 Up!
• Summer 2014: Enjoy in Rome and Turin
• End 2014: car2Go in Florence and Bologna
Cagliari Naples
PlayCar with 16 Bee-Green Mobility • End 2014: car2Go Black, a new service with
cars Sharing with 40 cars Mercedes, that will permit to travel between
Users: n/a Users: n.a.
two cities where car2Go is present
• Late2014/2015: car2Go in Genoa

Palermo
After a slow start in the early 2000’s,
Car Sharing Palermo carsharing initiatives have quickly
with 37 cars increased, showing room for private
Users: 755
players to penetrate effectively.

8
Continued Evolution of Carsharing Market

Market for Carsharing: System Segmentation

Sustainable Personal Transport
(Shared Vehicles)

Included in Research

Carsharing Carpooling Car Rental

Traditional Corporate P2P

Customer Profile Engine Type Commute Mode Dynamic Market with

startup & internet
aggregator
characteristics; further
evolution of this
Personal Business EV Non-EV One-way Round-Trip segmentation is
expected into B2B
offerings
Source: Frost & Sullivan analysis

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Carsharing Business Models – With consistent growth in the market, the carsharing
business model is evolving into new segments, e.g. Corporate Carsharing

Infrastructure
Membership
Parking
- A to B to A
- A to B - Free
- Dedicated
- X to X - Fee
- Public
- Host - PAYD

Confinements Vehicle

- 24X7
Carsharing - ICE
- City Centers
Business - EV
- Day/night
Model - Hybrid

Structure Customer

- Cooperative - B2C
-P2P
- For-Profit - B2B
- Traditional
- Non-Profit - Corporate
- Hybrid

Type
Note: Highlighted in red are models that are gaining prominence Source: Frost & Sullivan analysis.

10
Division Between Carsharing, Rental, Leasing , Ownership is Reducing
The convergence of carsharing, rental, and leasing is leading to products such as corporate carsharing, with
emerging competition also from vehicle manufacturers present or partnering in all 3 business groups

~31 million
2020

~450,000 ~19.25
~5.26 million
About 40% of
global share million
Vehicle Units

vehicles are
(Millions)

~53,600 Zipcar, Car2Go ~75.0–78.0

or Drive Now
Others include VW Leasing,
Arval, Sumitomo Mitsui,
Alphabet, RCI Banque, Lex
Autolease, Athlon and so on.

~45.0–50.0% share by
Enterprise, Hertz, Avis,
Europcar

~4.15 million
2012

ALD
ORIX
ARI
GE Capital

Carsharing Car Rental Car Leasing

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.

11
Corporate Carsharing System Definitions
Corporate carsharing involves placing a dedicated fleet of vehicles at company premises for the shared use
amongst this companies employees.

Definition
• Corporate carsharing involves placing a dedicated fleet of vehicles at
company premises for the shared use amongst this companies employees

Difference from Leasing

• The vehicles are equipped with virtual access and telematics technology
that enable remote booking of the vehicles, removing the need for manual
company fleet administration and key transfer

Ownership of Vehicles
• Leased directly from corporate carsharing providers
• In some cases, existing corporate fleets are retrofitted by independent
corporate carsharing providers

Exclusions
• Carsharing solutions for corporates that operate the fleet themselves.
• Carsharing for business customers and campuses, where vehicles in the
fleet may be booked by non employees as well as employees

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Evolution of Corporate Mobility
The emergence of total cost of mobility as a best practice is resulting in a continuous process of evolution of
corporate mobility solution; the objective is to provide for their seamless integration on a single platform.

Market for Corporate Carsharing: Evolution of Corporate Mobility, Europe, 2012-2020

• Ridesharing • B2B or Corporate Carsharing
• Company carpooling • Multi-vehicle and/ or Multi-
brand solution (with or without
loyalty points ) (E.g., Mu by
Peugeot, ALD van, ALD
2wheels)
• Extended carsharing for
businesses (longer rental
hours, E.g., VW’s Quicar Plus)
• Traditional Carsharing for
Business Customers (E.g.,
Cambio)
• EV corporate carsharing (E.g., • Integrated multi-modal
Move About); EV leasing solution – card or a service
services (E.g., AlphaElectric, (E.g., Mobility Mixx, Carbox
ALD Electric) Services, Daimler’s Moovel)
• Business to Employee • Parking management (E.g.,
carsharing (E.g., Athlon with Daimler’s Gotta Park*)
SnappCar)
• Inter-company fleetsharing
• Mobility solutions for remote
workforce (E.g., ALD • Intra-company one-way,
partnership with Mobispot) multisite corporate carsharing
• Mobility-related smartphone
applications (E.g., Athlon Car
Lease - booking and accessing
vehicle, ALD – mobile parking
payment service)

Pre-2009 2009-2012 Short Term Medium to Long Term

* Currently in the US, expected to be rolled out in Europe.
Source: Frost & Sullivan

13
What is Driving Corporate Carsharing? Corporate carsharing present fleets a mobility
solution that strikes the right balance between cost, flexibility, convenience and availability, although providers
are challenged with a lack of awareness, employee expectations, and technical complexities in the short term

Drivers of Challenges for

Adoption Adoption
Cost: Reduced Total Regulation: Taxation
Cost of Mobility Awareness: …is low
Revenue: Private Usage Sales Cycle: B2B sales
Technology: Less reach
Administration Complexity:
Sustainability: Lower Customisation
Emissions Partnerships: differ
Convenience: On regionally
demand & close Multi Brand: Tough
Perks to employees: across OEMs
New cars & employee Mindset: Sole use &
base grey fleet

14
Operational Model of Corporate Carsharing
Keyless access & operation, ease of employee registration, and centralized end-of the-month invoicing underpin
the operating model of corporate carsharing

Market for Corporate Carsharing: Operational Model, Europe, 2013

Invoice

Return Car
1.Corporate is
Drive Car 1.On return, invoiced at
employee end of month
Check Car 1.Employee (lease or
parks at
then simply designated usage based
Access Car amount)
1.Employee presses spot.
Reserve Car enters PIN to start/stop 2.Employee logs
1.Employee log into online button to start out from
Access Booking 1.Employee holds RFID system and driving. onboard
Platform indicates type of card upto checks in for 2.A fuel card system and
Registration usage. the reader any damage and 24*7 uses RFID
1.Employee
2.Business - cost behind the and existing customer card to lock.
1.Corporate accesses
is automatically windscreen car condition. service are 3.Car is
launches booking
allocated to the to unlock. 2.GPS is available. immediately
carsharing platform
relevant available to 3.Park mode in available to
solution. online or
department. determine case trip is another
2.Employee through
3.Private - paid route to interrupted. person.
goes to the mobile
with a personal destination.
online portal application to
credit card.
to register book a car.
4.Type of car and
once. time of booking
3.RFID card is are also selected
issued to reserve the
car immediately. Source: Frost & Sullivan analysis.

15
Key Corporate Carsharing Participants
There were 1,930 corporate carsharing vehicles identified across 10 European countries; a broad mix of OEM,
leasing companies, CSOs and mobility/technology providers, indicating partnerships & convergence opportunities.

Market for Corporate Carsharing: Strategy of Key Participants, Europe, 2013

Corporate Vehicles
Key Participants Typology Countries (2013)
Solution (2013)
BMW OEM AlphaCity* 200

CAR Plus,
Renault OEM
Autopartage
160

PSA/ Sixt OEM/ Leasing Share Your Fleet 30

Volvo/ Sunfleet OEM/ Traditional CSO Sunfleet 30

ALD Automotive Group Leasing ALD Sharing* 50

Avis/ LeasePlan Car Rental/ Leasing Avis on Demand 10 Luxembourg**

Mobility Carsharing Traditional CSO Mobility Carsharing 420

Move About Traditional CSO Move About 90 Norway

Mobility Solutions
Mobility Mixx Provider
Mobility Pool 400

Carbox Services
(excluding indirect Mobility Solutions
Carbox 500
relationships through Provider
leasing companies)
Others (Arval, Athlon, CAR+ Autopartage,
OEM, Leasing, CSO Est. 40
Greenwheels) Athlon Car Lease,

* AlphaCity launched in Spain and Austria in Q4 2013; ALD launched in Spain in Dec 2013 (these countries have not been added since information is mainly based on interviews done in Q3 2013.
** Flag symbol not used since Luxembourg’s flag is almost identical to that of the Netherlands;
Note: Mobility Mixx is an initiative of LeasePlan Netherlands. It is different from the LeasePlan/Avis venture and has been defined as one of the market participants in this study
Source: Frost & Sullivan analysis

16
 Convergence in Corporate Carsharing
Leasing and car rental companies, OEMs, traditional CSOs and other mobility solution providers are expected to
converge their offerings on a single platform to provide a comprehensive corporate mobility solution.

Market for Corporate Carsharing: Convergence in Corporate Carsharing, Europe, 2013

• Vehicles
• Proprietary technology
• Technical &
• Established fleet arms
Integration Expertise
Vehicle Manufacturers e.g. BMW, PSA, Renault
• Corporate Travel
(OEMs)
Expertise
e.g. Concur, KDS,
Amadeus
• Carsharing KPIs
Internet • Technology
aggregators/ online Traditional and P2P • Customer Service
travel management CSOs e.g. Mobility, Move
companies About
Mobility
Management

• Vehicle/Brand
Independent
• B2B Sales focused
• Independent technology
e.g. Carbox Services
Mobility Mixx
• B2B sales channels
• Corporate fleet customer
Leasing and Car
feedback
Independent Mobility Rental
• Investment potential
Providers Companies
e.g. ALD, Athlon, Avis

Key
Strengths Source: Frost & Sullivan analysis.

17
Five Key Predictions from Corporate Carsharing Research

European Corporate Carsharing to grow from ~1,900 fleet (2013) to over 84,000 by 2020

The number of providers of corporate carsharing to grow from 13 (2013) to over 30 by 2020
as all leading OEMs, Leasing, carsharing companies, and potential new entrants (e.g. car
rental firms) enter the market

The number of companies implementing corporate carsharing will grow from ~200 in 2013
to over 4,000 in 2020

Corporate carsharing fleets will account for 0.5% of European fleets by 2020 (up from
0.01% in 2013), representing just 5.1% of the addressable market – potential for
significantly higher growth

New corporate eMobility offerings (e.g. AlphaElectric), and dedicated charging potential at
business locations will lead to a significant proportion of EVs in corporate carsharing fleets

18
Corporate Carsharing Strategic Outlook 2014
Further integration of mobility services, partnerships to enable multi make carsharing, new entrants, and
technology innovations (such as virtual keys) are likely to be the next developments in corporate carsharing

Door to Door mobility Integration of several corporate mobility offerings on one

Customer platform
Demand Maximise assets – changing role of the company car to usage based & revenue
generating
Company wide mobility solution (not just senior management)

Enable multi make corporate carsharing (even OEMs) - essential for flexibility,
Product choice & competitiveness
Provision Expansion of providers from rental, leasing, and carsharing operators in particular

Service differentiation based on premium/budget providers solutions

Expansion of post use invoicing & billing bespoke to clients

Technology
Evolution from RFID/NFC cards & fobs to NFC smartphone virtual keys

Service differentiation (e.g. one way corporate carsharing)

Bespoke Multi company corporate carsharing (increase utilisation & lower costs)

19
Corporate Mobility Survey 2014 – Your Input Invited
Frost & Sullivan will be undertaking a detailed corporate mobility Voice of Customer survey, with detailed
profiles & aggregated analysis of ~200 decision makers to understand companies future mobility requirements

• Total Mobility Budget by Mode of transport (commuting & business)

Mobility Spend • Understand current corporate mobility & commuting habits (public transport, taxi, own vehicle, …)
• Satisfaction with current modes of transport and reasoning

• Identify key corporate mobility stakeholders (e.g. CEO, HR, Finance Director, Fleet managers…)
Decision Making
• Understand levels of approvals & complexity of corporate travel to identify pain points
Structure • Obtain information on which groups are eligible for which mobility services

• Understand corporate travel policies based on travel patterns, industry sector & job functions
Mobility Policies • Identify corporate mobility products & solutions offered today by employers (e.g. multi modal)
• Discuss direction & interest on new mobility products & services (e.g. carsharing, IT Platforms)

• Identify current company car volumes & feedback on current product offerings
Fleet
• Customer insight on how to adopt new mobility services/budgets effectively in their business
Management • Understand which corporate mobility products & services are of interest going forward

Acceptance of • Acceptance of new mobility business models – interest by product & willingness to pay
• Identify key benefits & challenges to businesses of various corporate mobility services (e.g. price
New Mobility point, employee mindset, technical complexity etc)
Models • Identify wishlist of corporate mobility products by company characteristics (e.g. size, industry)

• Understand corporate policy on current & future working patterns and impact to mobility (e.g.
Working more remote working, more mobile office rental etc)
Patterns • Identify technology requirements for employees & impact to mobility (e.g. relation of smartphones
& tablets and integration with IT Mobility Platforms)

20
Corporate Mobility Survey 2014 – Your Input Invited
Frost & Sullivan will be undertaking a detailed corporate mobility Voice of Customer survey, with detailed profiles
& aggregated analysis of ~200 decision makers to understand companies future mobility requirements

Areas that will be Covered in the Survey

Output
1.Detailed Profiles of
>200 companies
2.Aggregated Analysis

Methodology:
1.Primary Research Mobility Spend Decision Making Mobility Policies
with F&S Mobility team Structure
2.Web-based survey
3.Inputs from fleet &
mobility associations

Company Fleets Acceptance of New Future Focus

In association with Nexus Communications Mobility Business
Models

21
 Next UM 3.0 Event – 26th June 2014
Our Industry Leading Mobility Workshop returns with top speakers already confirmed
http://urbanmobility.gilcommunity.com/

Check out our Video with findings

from our 2013 Workshop:

Overview Video:
http://vimeo.com/frostsullivan/review/75025
617/fe3fc35bf3
Full Length Video:
http://vimeo.com/frostsullivan/review/7411774
3/316410038e

22
Our Key Hot Topics Covered in Our Research

1. Future of Urban Mobility: Video Report detailing new mobility business models with
supporting analysis from Frost & Sullivan’s mobility research programme
2. Car Sharing - European Voice of the Customer Survey – Awareness, Interest,
2013 Features, Willingness to Pay & Customer Segmentation with over 2,400 respondents
Hot 3. Competitive Benchmarking and Comparative Analysis of Mobility Strategies of Key
Global OEMs
Topics 4. Future of Vehicle Parking Management Systems in North America and Europe
5. Strategic Analysis of the European Corporate Car Sharing Market

1. 2014 Car Sharing Outlook - Global update on carsharing statistics, trends, and activities
2. Corporate Mobility – Key Trends impacting the corporate travel sector
2014 3. Global Taxi Market – Overview of global taxi market & insight on new city wide programmes,
new technology, and trends
Hot
4. Strategic Analysis of Carpooling Market in Europe and North America
Topics 5. Market Analysis of Internet Aggregators, Their Impact on Mobility and Their Plans for
Integrated Mobility

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Mobility Research Programme - 2014 Planned Research

Draft
Research Title
Timeline
2014 Global Carsharing Market Outlook Q1
Strategic Analysis of the European Corporate Carsharing Market Q1
Strategic Analysis of Carpooling Market in Europe and North America Q2
Strategic Analysis of Fleet and Leasing Market In Key European Countries Q2
New Business Models and Innovations in the Virtual Car Rental Market Q2
Strategic Analysis of the North American Small and Compact Sports and Crossover Utility Vehicles Market Q2
Strategic Insight on the Global Taxi Market Q2
Strategic Insight into Corporate Mobility Allowances - voice of Customer Survey Q3
Market Analysis of Internet Aggregators, Their Impact on Mobility and Their Plans for Integrated Mobility Q3

Urban Mobility 3.0, New Urban Mobility Business Models - Presentations from Frost & Sullivan’s Annual
Q3
Industry Workshop 2014
Future of Mobility Video: Video Deliverable summarising all key focus areas, and with insight from industry
Q3
experts
Mobility Integration and New business models in China Q4
Database and Comparative Assessment of European Carsharing Companies Operational Metrics Analysis
Q4
by City of Operation

•Note: Titles & number of titles are subject to change and are not guaranteed. Frost & Sullivan may change titles/timelines based on client preferences & priorities.

24
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and Twitter, & Watch our Urban Mobility 2013 Video

1. Check out our Future of Mobility

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27
For Additional Information

Katja Feick Mohamed Mubarak

Corporate Communications Programme Manager
Automotive & Transportation Automotive & Transportation
+49 (0) 69 7703343 +90 212 709 8804 Extn: 132
katja.feick@frost.com mohamedm@frost.com

Martyn Briggs Cyril Cromier

Programme Manager – Mobility VP Sales
Automotive & Transportation Automotive & Transportation
0044 (0)207 915 7830 +33 1 4281 2244
Martyn.briggs@frost.com Cyril.cromier@frost.com

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