- Remember back when being a cabbie was an actual job?
- Remember when we had to arrange for people to pick us up?
- Remember getting a driver's license?
- Remember when we could get in a car and drive too fast out in the countryside?
Morgan Stanley's new article does a great job of presenting the massive shift in markets and consumer behavior that connected cars will bring, but also the major impediments to change across different countries. If anything, it suggests that there will be no one solution to Car 2.0, because the problems are different depending on the social, political, and economic context.
For the automotive market, not one to readily embrace change, finding the right leadership to tackle such complex problems will be a challenge.
For decades, the health of the automotive industry has been measured by the number of vehicles sold. However, as shared, autonomous vehicles become more widespread, Jonas suggests that total miles traveled may serve as a more useful yardstick because it better reflects not only the state of the market, but also the industry’s evolving business model. “Miles” rather than “cars sold” delivers the message that the industry is moving toward some combination of auto sales and incremental sales of auto-based transport. “The sooner investors can make the transformation, we believe the more industry events will make sense over the next 12 to 24 months, as the story of industry disruption likely unfolds,” says Jonas