METRO MOBILITY \\ VOLKSWAGEN \\ GROUP F by Jip Bottema

Metro mobility & Volkswagen \\ Project three \\ group f \\

\\ Georgien Modijefsky \\ Andrea Steinwinter \\ Jip Bottema

Index Introduction Chapter one Research findings Chapter two Trend canvas 2.1 Basic needs 2.2 Drivers of Change 2.3 Emerging Consumer Expectations 2.4 Inspiration Chapter three Innovation 3.1 Innovation Potential 3.2 Who 3.3 The innovation Bibliography

P.4-5 p.6-11 p.12-13 p.14-15 p.16-17 p.18-19 p.20-21 p.22-23 p.24 p.25 p.26-28 3

This report contains research on the trend metro mobility and an analysis of the innovation potential of this trend, resulting in an innovation for the brand Volkswagen. The first chapter shows a short overview of the development of the project and gives the definitions of new mobility and metro mobility. Moreover, trends such as post-demographic consumerism, instant encounters, massclusivity, gamifacation, localizasian, post-demographic consumerism in Asia, empathetic pricing (in South and Central America) and metro mobility (in South and Central America) will be described by using examples. Metro mobility (in South and Central America) will be explained in further detail in this report, because the group got assigned with the task to develop an innovation based on that trend. Furthermore, the group was assigned to search within the area of South and Central America. However, after the first phase of research the lecturer decided to broaden the search field to other areas. In chapter two the metro mobility trend will be analyzed within the Canvas Model. The first part of the Trend Canvas consists of ‘Basic Needs’, ‘Drivers of Change’ and ‘Emerging Consumer Expectations’ which will each be discussed in more detail. Six examples will serve as an inspiration source for the innovation development, discussed in the third chapter. In the third chapter all the research findings and inspirational input comes together and is formed into a new innoavation for Volkswagen. After analyzing the general innovation potential an deciding on the target group, a new innovation will be laid out that fills the gap between emerging consumer expectations (from the trend metro mobility) and existing mobility trends.

Chapter one \\ research findings In this chapter the research findings and process will be discussed. It will describe how this project started out, how different trends within the subject ‘new mobility’ were researched and how one trend was chosen to use for the trend canvas (which will be discussed later in this report). This project is about new mobility. With that term a few possible meanings can come to mind. It could be about new ways of transportation or improving old ways of transportation which it is - but that is not all. New mobility is also about products and services that change the transportation experience and about values; values that before had nothing to do with mobility, but now are being incorporated in all ways of getting from point A to point B. These could be values like ‘sharing’ and ‘social interaction’. The project started out with collecting twelve examples per person on new mobility by looking at the trends post demographic consumerism, instant encounters, massclusivity, gamification, localizasian, post demographic consumerism Asia and empathetic pricing and metro mobility in South and Central America. It was very difficult to find information about South and Central America. Therefore, examples from other areas of metro mobility and empathetic pricing were added. The findings are the following:

Post-demographic consumerism The definition of this trend given by Trendwatching.com (2014d) is “People – of all ages and in all markets – are constructing their own identities more freely than ever. As a result, consumption patterns are no longer defined by ‘traditional’ demographic segments such as age, gender, location, income, family status and more”. This means that the consumer is no longer “bound to” demographic factors, or rather that the consumers are breaking their stereotypes. Transport for London is currently testing a new way of making traveling on the subway easier for the visually-impaired. This system uses beacons that connect to a mobile application named “Wayfindr”, that help visually-impaired find their way in the subway (Mobility-Trends, 2015b). As a result, Transport for London helps to improve the accessibility of the subway. More people and especially people with disabilities are able to make use of public transport. A lot of people love to go running, but some people do not have the time for it. Parents, for instance, cannot leave their kids at home, but bringing them along while running seems impossible. kidRunner solves that problem. It is a product that allows parents to go running together with their children. The kidRunner, a towable jogging contraption, can be attached to their waist. It is a small cart where you can put your kids in (Trendhunter, 2015). With this product, parents can go running just as easy as people who do not have children. Jaguar has a new eye-tracking windshield that wipes for you. If the sensor senses your eye moving toward the center of the rearview mirror, the car will automatically give the screen an extra wipe. The goal of this feature is to minimize human error (PSFK, 2015e). Therefore, anyone can drive a car safely.

Instant encounters Consumers are ready for ultra-liquid, instant connections to strangers. Connected consumers will embrace services that facilitate instant encounters for work, leisure and education (DLWO, 2015). This trend is all about coming into contact with and meeting other people. Victor is an app that makes it possible for people to book private jet services on demand. The app connects high-end travelers with private jet services in real time, even within a few hours of departure (PSFK, 2015a). This app allows an instant connection with a meeting as result. A Brazilian campaign introduced stickers in order to nurture friendships and social interaction between passengers in public buses. Each bus received five stickers that marked seats reserved for passengers that might be interested in a conversation or are keen on experiencing something new while they are traveling (Pop Up City, 2014). This allows passengers to meet others during their bus ride. Instant encounters do not necessarily need to connect people. In this example, dogs and people are brought together. Walkzee is an app that shows people where to find an animal shelter in their local area and helps them to schedule a walk with shelter dogs (Walkzee, no date). This is an ideal solution for people who travel a lot or whose work schedule is too busy to own a dog, but still would love to walk them, or simply for people who would like to volunteer. This gives both the dogs and the people the opportunity to have a companion when going for a walk and can even lead to an adoption.

Gamification Gamification is the application of “game-thinking” and game techniques in a nongaming area. It is, using game elements to engage and motivate the consumer (Marketingfacts, 2013).

Massclusivity By Trendwatching.com (2014b) this trend is defined as following: “A form of affordable premium consumption that combines the mass with the truly exclusive: tasteful, rare, experiential, compellingly storied, and more!”. This means that exclusivity is being combined with mass-consumption. The budget airline Virgin Australia offers free food, a complimentary drink, luggage and entertainment (in the form of movies) on their flights (Mashable, 2015). These add-ons are usually associated with a more expensive flight or airline or budget airlines that charge additional fees for it. This makes the airline a little more exclusive, while remaining a budget airline. Amazon is now trying a new form of delivery in Munich, that allows people to receive packages wherever they are. They no longer have to stay at home or pick up their packages somewhere, because Amazon and DHL will deliver the packages in the boot of the customers’ car. The service will be available for Amazon Prime customers (More Inspiration, 2015). Anyone can become an Amazon Prime customer. This makes it an exclusive service that will still be available to anyone who wants it. Detour gives people a brand new way to experience the world. It is an app that gives them audio walks at their own pace and schedule or synced with friends. It, furthermore, tells stories about the places they walk (Detour, no date).

Chevrolet offers customers an off-road driving experience in their Chevrolet Colorado without even leaving the showroom. For this they are using the Oculus Rift and a car that vibrates to give the customer the optimal experience (PSFK, 2015b). The Oculus Rift until now has been used mostly for playing games. This experience offered by Chevrolet, makes driving the car seem like a game. Another company that used the Oculus Rift is British Airways. In an outdoor campaign they invited passers-by to use the Oculus Rift to get a virtual trip to the U.S.A. (Mobility-Trends, 2015a). This is, just as the Chevrolet off-road driving experience, a game-like way to promote products. Ferrari has a new app giving consumers the opportunity to dismantle the $300,000 sports car virtually (The Verge, 2015). This is something the consumer can do for fun, without actually having to dismantle an expensive sports car. The Automobile Club of Romania has developed the Street View Test, a new teaching method. It is an interactive exam that takes students through scenarios in Google Street View to provide a realistic driver’s experience (PSFK, 2015c). This not only makes the test more realistic, but more fun and interesting.

Localizasian In rising numbers, Asian consumers are embracing new products and services targeted to their needs and wants by Asian brands that understand them better than competitors outside the region. The result is a deluge of ‘by Asia for Asia’ innovation (Trendwatching, 2014a). The Japanese company Hakuhodo has a new prototype: Talkable Vegetables. Whenever consumers touch a vegetable in the supermarket, a display shows a message from the farmer about that specific vegetable. The system has already successfully been tested in a store in Sapporo, Hokkaido (Japan Trends, 2015). This gives the consumer a sense about the farming environment, brings them closer to the farmer and gives them a more authentic feel about the product they are buying. China introduced the City Air Purifying System, a project that installed small bus stop shelters that purify the air while waiting for the bus (Tech in Asia, 2015b). This makes living in the city more pleasant and stimulates people to use their local public transportation.

Post-demographic consumerism Asia This trend is exactly the same as the first trend discussed in this chapter, but focusing on Asia. Unfortunately it was very difficult to find examples of this trend, about new mobility, in Asia. Therefore, only one example is given below. In China, a new startup just got funding: Public Dance Classics, an app targeting “dancing grannies”, inspired by dancing elderly women on the streets. The app shows elderly women doing various dances (Tech in Asia, 2015a). When thinking about dancing, the elderly are not really the first target group coming into one’s mind. This app enters a “new market” and shows that dance is for everyone, including elderly women.

Consultant Paruey Anadirekkul found it frustrating that in Bangkok there is a perpetual lack of parking spaces. This is why he created the app Parking Duck, an online marketplace for parking spaces. Anyone with available spaces can put them up for rent and those who are in need for a parking space can search for them via an interactive map, and seal the deal with a payment (Tech In Asia, 2015c). This is an app created by an Asian, for Asians.

Empathetic pricing South and Central American consumers are refusing to face daily pain points. Instead they are turning to brands for relief, in the form of flexible (and imaginative) pricing and discounts, which target and relieve their pain (Trendwatching, 2014). As part of a campaign, Uber has set up a curbside breathalyzer in Toronto. When people were over the legal alcohol limit, they were offered a free ride home (Adweek, 2015). This campaign shows empathetic pricing for the people who were not allowed to drive anymore

The city of Stockholm is trying to encourage people to go cycling more. The problem is that there is a huge shortage of places to park the bikes. This is why Stockholm is building a parking garage exclusively for bicycles, with all kinds of facilities to cater to the needs of cyclists (PSFK, 2015f). This is a reward from the city to the people who decide to take the bike instead of the car. Buses in New York City have not got the greatest status. To make life easier for people who do take the bus, Departures NYC was launched. This is an app that uses augmented reality to help people find bus stops and relevant information (PSFK, 2015d).

Metro mobility Made aware of endless choices by democratized access to information, experimentation-prone consumers want to expand their horizons. They are moving beyond the car as the default choice when it comes to personal mobility, and embracing a range of innovative transport solutions (Trendwatching, 2014c).

In San Francisco Leap was launched. This is a new public transportation system for those who want an experience more pleasant than typical public transportation affords but still want to avoid the hassle and pollution of driving their own car. Leap offers upgraded city buses with a focus on comfort, with standard bus seating options, a conversation nook and a laptop bar (PSFK, 2015g). South Korean designer Wan Ki Kim designed a concept that would make traveling by subway easier, more efficient and more comfortable. It is based on a tool that calculates the subway cars’ capacity by checking passengers’ overall weight. Screens on the platform will then display the data and commuters can identify the least crowded cars (Mobility-Trends, 2014). Cycleswap is a new peer-to-peer platform that enables citizens of Amsterdam to rent out their bikes to tourists (or other people in need of a bicycle). This allows people to ride bikes that otherwise would not be used and gives the renter the opportunity to earn money (Pop Up City, 2015).

After presenting these examples to the lecturer, the trend this report is going to be about became clear: metro mobility in South and Central America. Previously in this chapter there has been given a short definition of metro mobility. This trend is all about finding innovative transport solutions as an alternative to the car: public, shared, crowd-powered, sustainable and more (Trendwatching, 2014c). After finding examples of metro mobility in South and Central America (chapter three) and having made a start with the trend canvas (which will be explained later), there was a feedback session with the lecturer, Mariska Schaap. It has been decided to expand the area of search to other countries besides South and Central America and incorporate these in the report, because it was still very difficult to find good examples of metro mobility in this specific area. The most important feedback was that everything needed to be described more extensively. This feedback is used to improve this report. This is the process that has lead to this final report. The following chapters will take the reader through the steps of the mentioned trend canvas, which will eventually lead to a new innovation for Volkswagen.

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CONSUMER

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2.1 Basic needs To really understand this trend, it is important to know what consumer needs and desires the trend metro mobility addresses. This is because consumer trends are driven by these needs and desires. In this part of the trend canvas these basic consumer needs will be discussed and explained.

Freedom Freedom is the need for independence and spontaneity. It is also the need to have choices and to feel in control of making those choices (ItsTime, 1997). This is what the metro mobility trend is all about; being free to be independent, making choices and having different choice options and not having the obligations of owning a car. It is paradoxical; being able to drive a car gives a sense of freedom, but owning a car can make a person feel constricted. The reasons for these feelings of constriction will be further discussed in the chapter ‘Drivers of change’.

Ease/convenience Our lives are now more convenient than ever. Still, the consumer economy seems to be directed in making life easier. The more convenient life becomes, the more need there is for convenience (Waking Times, 2013). Naturally, people want this convenience in their way of transportation as well. The car is no longer seen as the most convenient way of transportation. Reasons for that will be discussed later in the report. This is why people go looking for other more convenient ways to get where they need to be.

Practicality A practical person does not want to waste time and cares about function (2Knowmyself, no date). For reasons yet to be explained (in “Drivers of change”), a lot of people do not feel like the car is the most practical option anymore. This is why they go looking for alternatives.

Status There is a shift away from product ownership and towards premium experiences as means of accruing status (Trendwatching, 2014). Status is no longer acquired by simply having a (nice) car, but by participating in new and exceptional alternatives. Metro mobility is all about new ways of mobility as an alternative to the car.

Saving money People save money for all sorts of things. Some people save up for something they really want. Others use it as an emergency cushion or for their retirement. Basically, people save money because they cannot predict the future (InCharge, no date). Today, buying and maintaining a car is more expensive than it has ever been before (Jalopnik, 2013). Therfore, a lot of people go looking for cheaper alternatives.

The need for doing good Doing good makes a person happy. In fact, studies have shown that people who participate in meaningful activities are happier than people who engage in pleasure-seeking behaviors (Livescience, 2007). Driving a car has negative effects on the environment and society, as will be explained in the next part of this report. People feel like driving a car is the opposite of doing good. That is why they use alternatives that make them feel better about their contribution to the environment and society. The trend metro mobility developed from people’s need for status, saving money, practicality, ease and convenience, the need for doing good and freedom. For some reason, a lot of people do not think that the car satisfies these needs. The most important reasons for that will be discussed in the paragraph “Drivers of change”.

2.2 drivers of change At this point it is clear what metro mobility is and what consumer needs and desires it addresses. But where is this trend coming from? Why is it emerging now? That question will be answered in this chapter, by looking at shifts and triggers. Shifts are big changes in society; they are widespread and long-term. Triggers are recent, short-term changes or technologies. Both, shifts and triggers are important to understand what the origins of this trend are. The focus will be on South and Central America, but most drivers apply to other parts of the world as well.

Shifts Prosperity leads to more car owners In South and Central America, prosperity has been rising. This has resulted in a vast number of car owners (Trendwatching, 2014). In 2011, car sales in Latin America skyrocketed. In Brazil, car sales had gone up by 86% compared to 2006 (Los Angeles Times, 2011). From January to September 2013, Mexican consumers bought 755.315 passenger cars and light trucks, the highest volume since 2008 (Trendwatching.com). Unfortunately this increasing number of cars had some negative aspects, which stimulated the trend of metro mobility. Climate unfriendly cars bring pollution Not everyone drives or is able to drive a climate friendly car. In Brazil in the first ten months of 2013, only 383 electric drive vehicles were registered (Wikipedia, 2015). Seen the fact that the amount of cars on the country’s roads in Brazil was set to top 80 million in 2013 (The Rio Times, 2013), which makes the amount of electric drive vehicles less than one percent, it is safe to say that it is not a lot. With a lot of climate unfriendly cars, comes a lot of pollution. On the other hand there is also a rising awareness about pollution, sustainability, climate change and the environment, which will be discussed later. This development led to people starting to search for alternatives that do not affect the environment in such a negative way. Growing cities Latin America is the most urbanized region in the world (Atlantic Council, 2015), with in 2012 already 80 percent of the population living in cities (Huffington Post, 2012). At the same time there is the fact that there is a large amount of cars. In many Latin American cities, car ownership has advanced far beyond limits that the metropolitan road system can accommodate. This results in endless, time-sapping and frustrating congestion. Rio de Janeiro and São Paulo are the top two most congested cities America. Consequently, the number of consumers in São Paulo who are willing to leave their cars at home increased from 65% in 2012 to 79% in 2013 (Trendwatching, 2014). As a result, people are looking for alternatives. Growing global population One thing that contributes to urbanization is the growing global population. It took thousands of years for the world population to reach a billion. After that, from the beginning of the 19th century, it only took one hundred years to double that billion. Barely fifty years later, in the 1970’s, the world population counted four billion people (Brown, D, 2013). At the moment, there are more than 7 billion people in the world (Worldometers, 2015). The more people there are in the world, the more people need a way to get from point A to point B. However, an increasing number of car drivers would worsen the already existing problems with congestion. Therefore, people are looking for more and better ways of transportation. Thriving choice options This shift has all to do with emerging consumer expectations, which will be further discussed in later in this chapter. When looking at the market of potato chips, a little over a generation ago there were only three flavor options. Today there are more choices than one can imagine, from buffalo mozzarella to lime and coriander chutney, not to mention the different shapes, textures and the form of preparation (baked, hand-fried, reduced fat and so on). Thanks to a mix of modern medicine, technology and social change, choice has expanded from the grocery shelf to areas that once had few or none choice options (Economist, 2010). It would only be logical that in the field of transport, people expect there to be more choice options as well.

Triggers More awareness The level of awareness for environmental issues has increased significantly over the last several years (MEPA, no date). Cars play a big part in this. Vehicle emissions can affect the environment in several ways, like greenhouse gases which contribute to global warming, air pollutants and particulate matter that find their way into the food chain of animals and nitrogen oxides and sulfur oxides that are major contributors to acid rain (SFGate, no date). The impact of cars does conflict with the increasing environmental awareness. This is why people go looking for more environmental friendly options. Recession Another big reason for finding alternatives to the car is the recession. The recent recession has had a big impact on this trend. When the economy changes, consumer behavior changes as well. For instance, they may be more likely to buy a car during an expansion period, rather than during a recession (Bureau of Labor Statistics, 2014). Even though the economy is now recovering, consumers are still massively budgeting (New Media and Marketing, no date). Recent research has shown that during the last recession, bike sales overtook car sales (The Guardian, 2013). In expensive times where people are financially insecure, people tend to look for cheaper ways of transportation. Uber and game-changers in consumer expectations This trigger also has to do with consumer expectations. Game-changers like Uber showed the consumer that there are other ways of transportation, and now they want more. However, Uber is not only about getting from A to B, but being able to order a ride anywhere and anytime and being picked up within a short time frame. Less housebound/more portable Todayâ&#x20AC;&#x2122;s consumer is less housebound than ever before. Nowadays, people have their phone in their pockets, they can watch TV shows everywhere they want and carry their computer around with them. Between 2013 and 2017, mobile phone penetration of the global population is expected to rise from 61,1% to 69,4% (eMarketer, 2014). The amount of owners of tablets and smartphones is still rising (Brandwatch, 2013). Technology like the mobile phone has been around for a while, but not as integrated with other devices and Internet and into society as the last few years. Consumers are no longer as bound to their homes as they used to be. This means that people can do the things they usually did at home wherever they want. However, they need a way to get where they want to be. Today, being able to move around is mainly about finding more and better ways to get from one place to another.

After analyzing the drivers of metro mobility, it is convenient to conclude that people do not want or do not like cars. That is not true. If that was the case, people would not have bought cars at the high volume that they did. It is not that people do not want cars. They just do not want any of the possible inconveniences of having a car.

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2.3 emerging consumer expectations

The previously explained Drivers of Change create new consumer expectations. These emerging needs, wants and desires will now be identified, to later on spot gaps between expectations and availability of products and services meeting these needs. Cheap First of all, people expect that transportation is cheap. A growing number of companies providing transportation heats up competition and lowers travelling expenses. Low budget airlines allow people to switch continents for a few euros and online price comparison websites and blogs like urlaubspiraten.de detect the cheapest fares of different types of mobility. Besides that, carpooling systems like blablablacar.de provide a cheap alternative to traditional ways of traveling. It allows people without a car to hop on somebody else’s car heading towards the desired destination for only very little money. Moreover, the globally declining oil price makes not only car travel cheaper, but also raises expectations towards public transport systems to lower their fares. Speed Secondly, mobility needs to be fast. The French TGV or the German ICE are being overrun by new technologies from China. The Shanghai Maglev for instance, operates with a maximum speed of 430km/h and average speed of 251km/h and connects people in Shanghai with the airport (railway-technology, 2013). This is just one example of a society that is speeding up and, therefore, expects from new mobility to support their need of getting fast to their target destination. There is also another form of speed people start to expect. As mentioned in the previous chapters, one reason for consumers to avoid the car, is the hassle of being stuck in traffic jams. People today are used to having their needs immediately satisfied, including instant information access. Another example to illustrate the need for speed is the instant maid service InstaMaid, where you can book a maid in sixty seconds (Ingram Micro Mobility, 2014). Availability Thirdly, today people want to be mobile anytime and anywhere, meaning that if they wish to get from A to B by taxi, they expect the taxi to be ready to pick them up immediately. Public transportation is expected to run more frequently and connecting even the most remote areas. Sharing systems like car2go or bike sharing concepts allow people to locate their choice of transportation and take it immediately. These networks are growing quickly and with a growing number of people attending, availability rises too. Freedom/Options Furthermore, in an ever-moving society, people want freedom. They don’t want to rely on schedules, on traffic or on other people. Today, people are confronted with a huge amount of options. They can choose if they would like to travel together with other companions or if they’d like some quiet time in the train. They want to choose from a big variety of mobility types. They also want to choose the freedom of not owning a car accompanied with maintenance expenses and other expenditures and time-consuming issues. Especially the younger generation tends to own less, but consume more (Ingram Micro Mobility, 2014). Look at Netflix, a service that allows you to watch movies and TV-shows anywhere, anytime (Netflix, no date). Convenience Moreover, mobility needs to be easy, meaning that people don’t want to have the hassle of finding a way, reading the bus schedule or looking up a number of a taxi company. They are no longer used to reading maps or asking people for the way. Instead, they expect their navigation systems to bring them to their target destination. Schedules or options to order a taxi are easily looked up on an app on their smartphones. Talking about smartphones, today’s generation expects to use their mobile devices while traveling. According to a study about the future of mobility from McKinsey&Company, 28% of all Germans use their mobile phone while driving a car, mainly for SMS, mobile internet and apps (McKinsey&Company, 2012). Nevertheless, they are concerned about safety issues and, therefore, expect media integration from a car. Personalized options As an aftermath of the individualization trend, people expect from new mobility a service or product that fits their individual needs. This is a trend within the mobility market that is mainly used by the car industry. It also has to do with the amount of choice options. Before, when a person wanted to go somewhere, they only had a few options to choose from. With the metro mobility trend, more ways of transportation become available. People want to be able to choose the option that fits them best at a certain moment. An app that allows this is Allryder, which compares urban transport options in price and speed (Allryder, no date). The consumer expects to not spend a lot of money on transportation, for transportation to be available and fast in multiple ways and they expect convenience and options that fit their personal needs. They also expect freedom in their way of getting from point A to point B. These are all expectations that need to be taken into account with the final innovation.

2.4

Inspiration

To find inspiration for the final innovation, six examples were chosen of businesses already putting this trend to use. These examples will be described below. All these innovations are examples of alternatives to the traditional car, and thus examples of the metro mobility trend. To give a wider variety of good examples, the decision was made to use not only examples from South and Central America, but also from other countries. YERKA the unstealable bike YERKA is a lock made out of a bike. Or a bike made out of a lock. It is an un-steal-able bike, designed and developed in Chile. The three main advantages of the bike are safety, design and comfort/usability. The most unique thing about this bike is that it has an integrated lock system, which means that parts of the bike can be folded around objects, so that it is impossible to steal. (Indiegogo, 2015). Sao Paulo real-time bus information Since recently, São Paulo has buses riding through the city 24 hours, seven days a week. Making sure that residents have access to reliable public transport options at all hours of the day is a particularly acute issue given the size and population of the city. Also, safety concerns have deterred many potential users of late night public transport. For this they have created an app that allows users to get real-time information on bus locations and maps (The City Fix, 2015). Leap In San Francisco, a new public transportation option called Leap was introduced. Leap is an option for those who want an experience more pleasant than typical public transportation affords but still want to avoid the hassle and pollution of driving their own car. Leap is a completely redesigned and upgraded city bus, with conversation nooks, USB charger outlets, laptop bars, organic snacks and free Wi-Fi. The goal of Leap is to not only upgrade the structure of the bus, but also the passengers’ experience (PSFK, 2015g). Virtue Pedalist The Virtue Pedalist looks like a car, but is a combination of an electric bike, a cargo bicycle, a tricycle and a velomobile. The Virtue Pedalist is designed to bridge the gap for people who do not want a car, but have too much cargo to carry on a bicycle. The vehicle is narrow enough to fit in the bike lane (PSFK, 2015). Cycleswap Cycleswap gives people in Amsterdam the opportunity to rent out their bikes to tourists or other people in need of a bike, via an app. People can set up an account and post pictures of their bicycle. Users of the app are offered bikes according to their location. After a connection is made, the renter and the letter can arrange a pickup (Pop Up City, 2015). MiBici Mexico The city of Guadalajara in Mexico just opened their first bike sharing system since Ecobici: MiBici. The service enables point-to-point travel, which means that users of the service can pick up a bike at one point and drop it off again at another point in the city. This is what one would call a ‘floating’ service. The system covers eight different neighborhoods and is integrated with several other transit modes. This kind of service has been around in other countries, like France, but is fairly new in South and Central America. These examples are the inspiration for the final innovation. Especially the real-time information about transportation, the concept of sharing and renting and the convenience character within an urban area will be taken into account in the final part of the trend canvas.

(Example of the YERKA bike, Terka 2015)

Chapter three \\ Innovation 3.1 innovation potential After doing research on the trend, it is time to look how and where this trend could be applied to the business of Volkswagen. This part will consider the innovation potential of the trend metro mobility and four areas where this trend could impact the business: vision, business model, product/service/experience and campaigns. Vision While researching this trend, the drivers were discussed. These drivers consisted of shifts and triggers. This part is about how the shifts underlying this trend can shape Volkswagen’s long-term vision (Trendwatching, 2014). The most important shifts were that climate unfriendly cars bring pollution, that the global population and cities are growing and that people want more choices. This trend could influence the way Volkswagen looks at the future. The trend is all about finding alternatives for the car, because of the previously discussed reasons. It is possible that this trend is here to stay for the long haul, and instead of seeing this as a threat, Volkswagen can look at this development as an opportunity for the future and prepare for it. Considering these shifts, Volkswagen could change the way they think about cars and expand their business by thinking about ways to make the car, or an “updated version” of the car, attractive again for people who do not want to drive their traditional cars in an overcrowded city. Business model Another way to apply the trend is in the business model, in the form of a whole new business venture or brand (Trendwatching, 2014). This is also a possibility for Volkswagen. The consumer is looking for alternatives to the car. Therefore, Volkswagen could launch a new brand for a different kind of transportation. This could be a solution to give the consumer what they want, without having to change the business of Volkswagen itself entirely. Campaigns The trend can also be incorporated into the campaigns of Volkswagen, to show the consumer that they speak their language, that they “get it” (Trendwatching, 2014). Using this trend in campaigns means giving a new meaning to the car that takes all the negativities around cars away. The reasons not to drive a car, like pollution and congestion, can be debunked through a campaign, so that people do not see the reasons not to drive a car anymore and only see the reasons to do drive a car. Product/service/experience Metro mobility could also be applied in the form of a new product or service, or as an adaptation of the current products and services (Trendwatching, 2014). Volkswagen could take this opportunity to reinvent new products to cater to the needs of those who participate in the metro mobility trend. The final innovation will be a combination of a new product and a new service and will be discussed in the next part of the canvas. The metro mobility trend could be viewed as a threat to the car business. It can also be viewed as an opportunity to reinvent and conquer new markets that at the moment barely exist. Using this trend properly could not only make Volkswagen stand out from the competition on the car market, but even make competitors irrelevant.

3.2 who In this part of the trend canvas, the customer groups to which the metro mobility trend could be applied to will be discussed. The target group will be at the foundation of the innovation. The target group is inspired by the research on South and Central America and what influence the metro mobility trend has in that area. The main reasons why the car is losing in that area are because of pollution in the cities, traffic jams and congestion and high costs for owning a car. For these reasons, citizens are turning to other ways to get around the city, which have been described in the part ‘Inspiration’. The focus of the innovation will be on urban citizens that do not want to own a car, but still want the convenience and freedom of driving one. This makes it a very large and broad target group and leaving this target group out is a lost opportunity for Volkswagen. 24

3.3 The innovation Arrived at the final part of the trend canvas, it is time to describe the innovation that derived from the research on the basic needs this trend fulfills, the drivers of this trend, the emerging consumer expectations, considering the innovation potential and the consumer groups. First of all it is important to consider, that the consumer wants ease and convenience, something that does not cost a lot of money and that gives them status and practicality. They do like cars, but only if they do not have to deal with the negative aspects and with the obligations. The consumer wants freedom, convenience and availability. With all this in mind, how can Volkswagen participate in this trend? The answer is Type 2.0, the car sharing experience.

The car will be connected to an app that, among other things, allows you to see where the nearest Type 2.0 is. Moreover, the app connects to an integrated screen in the car. The drivers can enter on the screen where they are and where they want to go. Other users of the app, people who did not rent a Type 2.0, can also enter where they are and where they want to go. The integrated screen will make a match between people who practically have the same route. The driver can then choose to let those people join the ride. Whenever they pick someone up and drop someone off, the driver will get rewarded with points. These points can be used to “buy” extra kilometers with the Type 2.0. The distance people give a lift will be measured via GPS.

Volkswagen has an inspiring history with the iconic “hippie van”, that to this day still represents being able to go wherever you want, whenever you want, thus: freedom. Type 2.0 will be based on the shape and design of the iconic Volkswagen van, but will function as an electric city car, suitable for urban areas.

The app will also give an overview of people’s usage, comparisons with other users (rankings and rewards), has an integrated paying system, will have references about the users’ driving skills, or whether he or she is very communicative or not. It includes a help desk and a community where people can share pictures of their ride sharing adventures.

Type 2.0 will be located all over the city at electric fuel stations with fixed parking spots. Therefore, parking will never be a problem. The idea is, that whenever urban citizens need a car, they can find one near them, get in the car and simply drive away. When they do not need the car anymore, they can just leave it at one of the fixed parking spots. To avoid logistical difficulties, it will not be a ‘floating’ system. It sounds very basic, but there is a twist.

The focus of this concept will be on freedom. Type 2.0 takes driving to the next level, as it connects car sharing with car pooling and gives freedom back to its users; freedom to share, freedom to drive alone, freedom to get a ride and to go anywhere, anytime. Furthermore, the Type 2.0 will not only represent freedom because of its functions, but also because of its design, since it is based on the iconic Volkswagen van. This van is more than just a car. It has always been connected to a sense

of freedom; it is nostalgic and stirs up feelings and images with people who see it. Type 2.0 will give the freedom of a car, without all the responsibilities. It will make people feel good, because they are not only doing good for others, but also for the environment. By picking up people, less drivers will be on the road, thus, less traffic and more appreciation for driving. Type 2.0 fits the people who are participating in the metro mobility trend, while still wanting to drive a car without having to own one. In contrast to other car sharing systems like Car2go, it also helps people who do not want to drive or who are not able to drive themselves anymore. Mothers, for instances, could watch after their children while being on the car on the way to do their grocery shopping, business people heading to a meeting could work while being on the car, but also young people enjoying some drinks and not able to drive home could make use of Type 2.0 and easily get a lift home. This concept fills the gap between the through metro mobility emerging consumer expectations and what the car industry offers. Seen the fact that the presence of the drivers of this trend will only get stronger, it is likely that this is where the market of mobility is heading. This concept is a great opportunity for Volkswagen to be a game changer in the car industry, by anticipating on major changes in society earlier then their competitors.

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