There was a time when a Company had to compete with other companies within its own Industry
Entry-barriers across industries were very high
No more !
In the Internet Age , a Company never knows from where a competitor will spring up and completely re-write the " Rules of the Competition Game " !
It seems , the rules of this new Competition Game is , " CO-OPERATION "
Something like : " If you cannot lick them , then join them "
FOR EXAMPLE :
The existing Car Manufacturers are being threatened by the " Non - Car Manufacturers " such as Amazon / Google / Apple / Alibaba / Baidu etc , who are rushing headlong into manufacture of Autonomous ( Driverless ) Cars
So these Car Manufacturers have realized the threat looming on the not-so-distant horizon and started tying-up with " Ride Share " companies
* General Motors with Lyft
* Toyato with Uber
* Volkswagen with Gett
* BMW with Scoop
* Ford ( India ) with Zoomcar
* Mahindra & Mahindra with Ola
Because they have realized that the TECTONIC SHIFT shaking up the Car Industry is :
If you can have " Transport as a Service " delivered WHERE you wants , WHEN you wants , WITHIN 5 minutes and CHEAP , then why OWN a car ? - and worry about repairs / parking / driver / taxes ?
Ride sharing services are re-writing the rules of " Asset Ownership Vs Asset Service "
Remember , some 30 years , in many parts of India , homes and shops , used to " OWN " a small privately owned diesel-operated GenSet , since there were long hours of power BLACK-OUTS ? One could not depend upon State owned power supply companies . You had to fend for yourself !
But when power from Public Utility Companies became abundant / cheap and reliable , private Gensets disappeared !
That is about to happen in case of privately owned cars of which India produced some 2.8 million in 2015-16
A privately owned car ( may be ) operates for just 2.4 hours ( out of 24 hours ) per day . That is 10 % utilization
Rest of the time , it is parked
But suppose , it was available for plying on the roads , for 50 % of the time ( 12 hours per day ) ?
That is 5 times as much ! And available to ANYONE at a moment's notice ( thru Mobile App )
Then , it is theoretically possible that the number of NEW cars Indian private owners buy , may go down to 0.5 million per year ( as against 2.8 million ) , since few people would want to " Buy / Own " a car !
That is a huge threat to existing car manufacturers ! Imagine being made obsolete by Ride-Sharing Companies !
WHAT NEXT ?
Next tectonic shift is :
DRIVER-LESS CARS = LESS-CAR ROADS
Why do you think , car-companies like Tesla / General Motors / VW and non-car companies like Google / Uber etc are frantically working to launch " AUTONOMOUS ( DRIVER-LESS ) " cars ?
They have no love lost for the drivers ! ( May be , a little bit ! )
In a traffic jam , taking a taxi from Andheri to Churchgate , will take you 90 minutes , even if it is a Uber or Ola
So , a Ride Sharing company may save you those other hassles ( repairs / parking / taxes / driver etc ) , but it does not save you any travel-time , to go from A to B
That ( no reduction in travel time ) holds good , even for DRIVER-LESS , ride-sharing taxies !
Diver or no driver , travel time remains the same
Except for another " PARADIGM SHIFT " in case of DRIVER-LESS cars , viz:
Its utilization can easily go up to 90 % of 24 hours !
Imagine 1 LAKH , DRIVER-LESS , Uber / Ola ride-sharing taxies roaming the streets of Mumbai , 24 hours a day !
That may eliminate from the roads of Mumbai , 10 LAKH private cars , making Mumbai , a
* less CAR / less TRAFFIC JAM / less POLLUTED / less NOISY / less TRAVEL-TIME / less ACCIDENT , city !
I hope Shri Nitin Gadkariji , re-focuses on replacing Old Polluting Petrol / Diesel Vehicles ( V-VMP ) with Driver-less Ride Sharing Future of Urban Transport
I am sure , he is aware of the Guidelines released by the US Department of Transportation just 2 days back , which outlined safety expectations and encourage uniform rules for the DRIVER-LESS CAR technology
23 Sept 2016
www.hemenparekh.in / blogs