Fleet Europe °97 by Nexus Communication

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

#97

04/2018

32 PAGES

FROM FLEET TO MOBILITY MANAGEMENT

Nexus Communication - Fleet Europe #97 - Periodic magazine - April 2018 - Deposit Office Liège X

• The building blocks of the Mobility programme • Mobility Management in practice

MANAGEMENT

Fleet electrification at SAP Labs

INTERVIEW Gero Goetzenberger, CEO Athlon

CONTENT 4-45

TRANSFORMATION LEADS TO CELEBRATION Last year your Fleet Europe magazine celebrated its 20th anniversary. During those twenty years the internationalisation of fleet management has taken form, but it is not at an end. There are new opportunities to be grasped, new technologies to be adapted. The biggest opportunity lies in the transformation from fleet to mobility management.

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Mobility management is not only our dossier in this magazine but will also be one of the many topics in our 100th issue in October this year. Indeed, we started our journey 100 magazines ago. A journey that asks for new insights, business models and best practices. These themes will be central to the Fleet Europe Summit 2018 and the Fleet Europe Awards 2018. For more than 20 years and almost 100 magazines we have witnessed the growing professionalism of the European fleet community. Now, it’s time to put your programme and your company in the spotlight. Apply for the 2018 Fleet Europe Awards by visiting the event website forum.fleeteurope. com/programme/ award.

Steven SCHOEFS Chief Editor, Fleet Europe

DOSSIER The smile of Mobility Management It’s time to move to Mobility........................... 6 Tips and tricks to introduce mobility management....................................... 10 Mobility management in practice.......... 12 Will you ‘Netflix’ your next car............... 16 Looking for the IMP of tomorrow.............. 20 Managing risk in mobility solutions........ 24 New mobility, new risks – time to reassess old policies........................ 26 Hail to ride hailing............................................. 28

10 marvels of the connected car............ 32 Smart Cities: Actions speak louder than words.............................................. 34 Making smartphones better in-car tools.................................................................. 38 Mobility in Latin America.............................. 40 Asia, the mobility growth accelerator.................................................................... 42 BMW and Daimler to merge mobility services....................................................44

50-51

58-59

BUSINESS

EXPERT

MANAGEMENT

Gero Goetzenberger, CEO of Athlon “Make people move around without hassle”

Alexander Unfried, PwC SAP Labs France: When car become 20 Jaguar I-Pace and mobility 100% EVs from 2019 on

BUSINESS Interview with Alessandro Grosso, FCA EMEA: “It’s all about relationships”……………………………………………………………………………………………………………………………………… 48

INNOVATION

Morpheus Cup: The handlebars guide the way………………………………………………………………………………… 49

ANALYSE

The rise of corporate car-sharing………………………………………………………………………………………………………………………… 52 Mobility is shared, electric and autonomous………………………………………………………………………………………… 56

MANAGEMENT

SEPTEMBER

IFMI DIGITAL MASTERCLASS:

The impact of WLTP

27 - 28

2018 FLEET EUROPE SUMMIT

REMARKETING

NOVEMBER

Barcelona

Telematics data is personal data…………………………………………………………………………………………………………………………… 60 WLTP: Prepare for impact…………………………………………………………………………………………………………………………………………… 62 Requirements for a customer centric strategy…………………………………………………………………………………… 64 What’s new?…………………………………………………………………………………………………………………………………………………………………………………… 67

DOSSIER

THE SMILE OF MOBILITY MANAGEMENT STEVEN SCHOEFS

We all know that vehicle fleet management focusing on one driver/one vehicle won’t go away soon. Nevertheless, vehicle fleet management with one vehicle for multiple drivers is bound to take off. Car sharing and ride sharing are expected to grow exponentially. Car-sharing is expected to grow at an annual rate of over 25%, hitting 20 million users by 2020. Also ride-sharing is projected to grow exponentially. The exact increase will depend on factors like tech development and product offer, legislation and infrastructure, cost effectiveness and ease of use. Talking of user-friendliness, the possibility to pick the mobility mode you need via a simple click on a smartphone is what your car gave you in the past: both what you need and what you want - it puts a smile on your face.

IN BUSINESS THERE ARE MOMENTS WHEN STRENGTH IS REQUIRED

But changing consumer behaviour, going from ownership to use, comes with challenges. It forces fleet suppliers and customers to rethink their business model and corporate mobility strategy. It generates a more complex ecosystem. It raises questions about security and privacy. It requires change management. In this dossier we look at the way fleet management can evolve to a sustainable and applicable mobility management; 30 pages long!

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FLEET EUROPE #96

SMARTMOBILITY

It’s time to move to Mobility otherwise you're out Frank Jacobs @Frank_J_Jacobs

The moment has never been better for your company to switch from Fleet management to Mobility management. In fact, that switch has never been more urgent, explain experts Thibault Alleyn and Pascal Serres.

Thibault Alleyn, Global Consulting Director at FleetVision

Fleet management is at a crossroads. A convergence of technological innovation, regulatory pressure, and the changing demands of employees (for more flexibility) and of society as a whole (for more sustainability) has created an inflection point. If your company hasn’t done so already, now is the time to switch to mobility management. Not doing so is riskier than taking the jump towards the future of corporate mobility – focused on a wide range of multimodal solutions rather than on the company car in isolation.

change and new technologies are offering more practical and cheaper alternatives,” says Pascal Serres, founder and manager of mobility consultancy Moby-D. “In their fight against pollution and congestion, regulatory and fiscal systems all over Europe are providing a boost for this trend. Fleet managers who haven’t done so yet urgently need to broaden their thinking, from company cars to mobility in general.”

MATURING TECHNOLOGIES “Broadening the horizon has become critical,” confirms Thibault Alleyn, Global Consulting Director at FleetVision, the consultancy unit of Fleet Logistics Group. Why? “We’re beginning to see a convergence on the vision of corporate mobility. In other words: we’re switching from a period of early innovation and testing to a period of maturing technologies, spreading to achieve critical mass.”

• Firstly, because Fleet is a major compo-

“For as long as most of us can remember, the main objective of Fleet managers across Europe has been to get the best company car at the lowest possible TCO. But now, social

MULTI-YEAR CONTRACTS The urgency is threefold:

nent of any company’s expenditure; generally, second only after personnel in the operational budget. • Secondly, because in the current standard setup, fleets are tied up in multiyear contracts – meaning that changes decided today could take up to four years to be fully enacted. • And finally, because mobility touches upon a variety of corporate departments – HR, Finance, Procurement, CSR, Legal, Travel and Fleet – which are all stakeholders with a say in the future scope and objectives of Mobility management.

FLEET EUROPE #97

Set up a task force to define optimal usage and compensation packages.

And time waits for no company: “As with other hot topics in the market – think of WLTP, for example – the change to Mobility management is imposed upon Fleet managers, by both internal and external stakeholders,” says Alleyn. “And even if it’s so that not all companies need to have a sophisticated mobility setup today, they should at least be aware of the options on the market and their potential fit within their own policies and strategies.”

all employees, not just the execs and sales staff who are entitled to a company car.” In his opinion, the involvement of HR and Finance especially is crucial.

DETAILED APPROACH Many who have yet to make the change from Fleet to Mobility management will feel reassured to know that enough corporates have gone before, so the steps to be taken are broadly agreed upon (see frame).

“A Mobility policy could include shortterm contracts; travel rules for using taxis, trains, planes and hotels; company cars; public-transport protocols for employees to use when commuting to and from the office; and a policy for working from home,” lists Serres.

“These steps result in a blueprint which forms the basis of a detailed approach, enables the company to reach out to suppliers and – above all – makes the change happen,” says Alleyn. “It’s key to have clear objectives and define the scope to be covered,” agrees Serres, who points out that “Mobility management is a much broader discipline than Fleet management, which should encompass FLEET EUROPE #97

DIFFERENT BLUEPRINTS The broad outlines of the process as described above can result in very different blueprints, depending on the type of company and the type of mobility needs for which it is developed.

“Ideally and ultimately, Mobility policies will affect the way all employees work and travel. But for the time being, most Mobility initiatives are limited to private solutions for car sharing and the like; and to the integration of public transport or of flexible replacements for company cars.”

Pascal Serres, Founder and Manager of Mobility Consultancy Moby-D

“As trusted advisors to companies in a multitude of industries across the globe,

SMARTMOBILITY

ADVERTORIAL

CONCEDED EDITORIAL SPACE with HR, CSR and Travel, as they should also involve the leadership of the business,” says Alleyn. “Especially for tool cars, their input is fundamental to properly understand current usage and future mobility needs.” In the end, all those different blueprints and their implementations in all their variety will share one clear end objective: to achieve a future-proof, sustainable Mobility policy that offers a win-win to all participants.

The final objective of a Mobility policy is to offer better working conditions while both improving productivity and reducing cost.

FleetVision doesn’t believe in a one-sizefits-all approach,” Alleyn concurs. “The methodology to define a Mobility concept is quasi-universally applicable, however, the outcome itself is far from universal.” FUNDAMENTAL INPUT Again – the success of the change management exercise, and the usefulness of the blueprint, depend on the involvement of all internal stakeholders, not just HR and Finance, but, as the unique structure of each company warrants, also Legal, Travel, Procurement, and others. “In our opinion, these task forces go much further than the typical car committees

DELICATE BALANCE “Historically, the car Fleet policy has always struck a delicate balance between creating satisfaction for employees and generating savings for the company. The transition to a Mobility policy takes this to a higher level of complexity,” according to Alleyn. But the bottom line stays the same: the successful Mobility management concept will continue to combine employee well-being with tangible corporate benefits. And yes, even though that may sound similar to what came before, it is a task that has a sense of urgency about it, says Serres: “The final objective of a Mobility policy is to offer better working conditions while both improving productivity and reducing cost. This will increase the attractiveness of the company in question – and that attractiveness is an essential quality to have in the employment environment of today and tomorrow, in which it is increasingly difficult to attract and retain the right staff. And that is yet another reason why now is the right time to make the move towards Mobility.”

Today the facts point to driving electric. Range is now a non-issue and charging infrastructure continues to expand rapidly. Electric vehicles (EVs) are a smart choice for today’s fleets – when implemented with the right partner. From less environmental impact to cost savings, nearly every company stands to benefit from electrifying its corporate fleet. Yet many have to “go electric” because they are uncertain how, or where, to start. AlphaElectric, the eMobility product from innovative Business Mobility provider Alphabet, enables businesses to seamlessly bring the advantages of EVs to their enterprises. CUSTOMISATION COUNTS The product stands out for its flexibility and high level of customisation. Instead of a one-size-fits-all offer or set packages to choose from, each AlphaElectric solution is tailor-made to suit a company’s driving needs. Using Alphabet’s proprietary Mobility Consulting Tool (MCT), Alphabet experts conduct an Electrification Potential Analysis (EPA), the basis for each client’s unique eMobility solution.

THREE STEPS TOWARDS MOBILITY MANAGEMENT • Firstly, see it as a great opportunity to gain an understanding of your corporate mobility needs, and of your employees’ perception of company cars and corporate mobility in general. • Secondly, set up a task force with representatives from all stakeholding departments (HR, Finance, and others, as required by your circumstances). This task force must define the optimal usage (for tool fleets) and compensation packages (for benefit fleets) the company wishes to offer.

its current company fleet. Alphabet then provides an end-to-end solution consisting of EVs and plug-in hybrids (PHEVs) as well as the relevant charging infrastructure and on-top mobility services. This bespoke solution, along with Alphabet’s guidance in navigating the complex eMobility landscape, empowers businesses to adopt EVs.

parking behaviour. These insights flow into a unique fleet driving profile, which the MCT uses to determine the best-fit, future-oriented Business Mobility product. After the consultation phase, Alphabet provides tailor-made services to ensure EVs and charging infrastructure are seamlessly implemented in a client’s fleet.

Alphabet’s approach is so effective because the EPA is based on real client data. Removable loggers are temporarily fitted in fleet vehicles to record metrics such as speed, distance travelled, acceleration and

The EPA and MCT can also be employed to help enterprises to meet their environmental targets while continuing to grow their business. AlphaElectric gives every business access to the right forward-thinking, sustainable eMobility solution.

HOW IT WORKS The EPA and MCT make corporate eMobility easy, transparent and in line with each business’ needs. Developed as part of Alphabet’s signature consulting approach, the EPA pinpoints how a client can optimally swap out combustion cars for EVs in

• Thirdly, acquire a profound understanding of the mobility solutions available in the market (now and in the near future), linking them to the usage needs and compensation packages.

Going electric: a how-to guide

FLEET EUROPE #97

MORE INFO www.alphabet.com/eMobility

SMARTMOBILITY

The way to Mobility Management Benjamin Uyttebroeck

FIRST THINGS FIRST: KEEP THIS IN MIND Adapt your mobility programme to each local situation When we’re talking about cars, the situation isn’t all that different whether you’re in Australia, in Germany, in China or in Brazil. The models, budgets and equipment might be different, but the basic concept remains the same. It’s different for mobility. If public transport is efficient, it makes sense to use it. If your geography, climate and distances allow it, you can use bikes. If the charging infrastructure is in place, you can go electric. If your employees can work from home, let them.

It needs to be necessary New mobility solutions can be very good, but they need to be necessary for people to give up their personal cars. That necessity can be about not wanting to lose time on congested roads. It can also be financial: private car ownership or usage can be or become unaffordable. It will be difficult to convince people to go along with a transition to mobility if their daily commute takes them about fifteen minutes in their private car.

If not necessary, it needs to be better Employees won’t mind giving up their own car if they get something better in return. That can be a flexible choice of vehicles, the possibility to get paid the unused part of their mobility budget or any other improvement.

4 5

The best mobility is not going anywhere Consider working from home as an alternative mobility solution. Meetings can easily be held using videoconference services. Include employees that don’t qualify for a company car Mobility management should extend to all employees, not only those that qualify for a company car.

Change management Even if it is necessary to move away from the idea of having your own company car, it takes some effort to get people on board, especially in mature markets. Plan time for this change management on top of technical or legal hurdles.

Technology can replace business trips. In a videoconference, participants don’t need to leave their office or even their home.

@uytteb

How can you move your fleet management to a contemporary mobility management? We spoke with Global Fleet Expert Yves Helven and Franz Fehlner (head of international fleet at Allianz) to draw up a road map based on tips and tricks.

Mobility requires a mix You will need various solutions: car sharing, pool cars, bicycles, public transport, … This will make mobility management more complex than fleet management where a leasing company or fleet management company takes everything out of your hands.

Know what’s available Make sure you know what mobility solutions are available in each area. Are they also feasible or realistic? Who is behind the suppliers? Are they sustainable? What can you organise by yourself?

FLEET EUROPE #97

GAINING FROM THE TRANSITION TO MOBILITY • Employee efficiency If your employees can always get to work on time, this increases their efficiency. • Employee satisfaction Life can be more pleasant for employees if they can enjoy a variety of mobility solutions. • Corporate image Your corporate image can improve if you can advertise your green or high-tech strategies. Indirectly, this can also lead to more employee satisfaction. • Environmental benefits A mobility programme can lead to significant decreases in CO2 emissions. • Customer satisfaction All these benefits can lead to growing customer satisfaction.

Mobility management often requires a combination of transportation modes.

companies, travel agencies. Talk to these partners from the idea phase.

Other companies Your mobility challenges may be similar to those of other companies around you, in the same business district or industrial estate. Getting another company involved adds the number of stakeholders and possible complications but it also adds the scale you can affect.

STEP BY STEP Analyse your internal customers Who are they? What can be changed quickly? Can you get leaders on board?

Examine the current usage of your employees Include geolocation analysis of daily trips.

3 4

Analyse what suppliers you are using

TALK TO YOUR PARTNERS Internal partners This includes colleagues responsible for company policies, senior management, LEOs (legal and environmental officers), HR and the Workers Council and trade unions. It is also a good idea to include the managers of the car users, as they will be reluctant to see measures implemented that can affect their employees’ efficiency.

External partners External partners can be existing and new suppliers, public authorities, public transport authorities, fleet management

FLEET EUROPE #97

Make your concept Include internal stakeholders (HR, top management, local, regional fleet managers).

Look for tech solutions that make it easier for your employees to use various mobility solutions (online booking tools, smartphone apps).

Prepare a management pitch Ideally, this should not be longer than 4-5 slides. Include targets on the shortterm, mid-term and long-term.

Implement a pilot for your mobility programme Allow free choice to step into the mobility plan during the pilot phase.

Finetune and improve along the way Set a timetable with points you want to review at set intervals.

Roll out across the company.

STAKEHOLDERS ON BOARD Demonstrate that mobility solutions contribute to reaching the company’s targets. Companies will be reluctant to implement change without seeing the economic advantage.

2 3

Set up a Global Mobility Council with the most important stakeholders.

Organise an internal campaign to sell your project and to build an image of a modern, sustainable company that offers additional benefits to its employees.

Organise test cases and try to have leaders participate in them.

THE JOURNEY GOES ON… Once the mobility programme has been implemented, continued monitoring is required. Problems need to be addressed and remedied and mobility managers should always be on the look-out for new mobility opportunities and solutions.

SMARTMOBILITY

NO CARS FOR THESE CONSULTANTS

Mobility Management in practice

Company name: Kapernikov Sector: Business consultancy in data, automation and prototyping Name: Rein Lemmens, founder and CEO Fleet size: 0 Mobility offering: public transport, company bikes, bike sharing, car sharing, taxis

PROJECT Kapernikov’s 25 consultants work from three offices across Belgium or from their clients’ premises. “It’s grown organically,” says Rein Lemmens. “It struck us that consultants often use cars for their business trips even though cars are often not more practical than trains. You can’t beat trains to move between big cities: it’s fast and you can work in comfort.” Combined with the company’s focus on sustainability, they decided not to offer company cars. Bikes, taxis and car share services (Cambio, DriveNow) are used as last-mile solutions. Company bikes are bought and serviced by the company.

Benjamin Uyttebroeck

RESULTS Kapernikov believes cars aren’t required to attract or retain staff if the total package is competitive. Taxation makes it hard for the company to offer staff mobility solutions for private use, which they believe should change. In Belgium, company cars and bikes can easily be used privately but car share services cannot. FUTURE Kapernikov has looked at multimodal platforms that combine public transport, car sharing, ride sharing and other mobility solutions. They still manage all mobility services themselves because the Belgian train operator doesn’t allow third-party ticket sales.

@uytteb

USE YOUR MOBILITY BUDGET FOR PRIVATE PURPOSES Companies have been talking about transitioning their fleet management to mobility management for a long time. We spoke with a number of companies that are walking the mobility talk. Let’s discover their mobility offering.

Rein Lemmens of Kapernikov frequently uses his folding bike to go to business appointments.

Company name: Daiichi Sankyo Europe Sector: Pharmaceutics Name: Michael Müller, head of Mobility and Facilities Fleet size: 1,100 Mobility offering: company cars, mobility budget

WAKING UP SLEEPING CARS PROJECT Orange France manages its vehicle fleet in a traditional way: maintenance is included in their long-term rentals but Orange manages insurance, tyres, fuel cards and motorway tolls by itself. This system suits them perfectly but they are keeping their options open ahead of IFRS16.

Company name: Orange France Sector: Telecommunications Name: Patrick Martinoli, managing director for Innovation, Projects and Automotive Expertise Fleet size: 18,000 (mostly LCVs) Mobility offering: company cars, car sharing, bicycle maintenance

Orange has a car share fleet of over 2,000 vehicles that can be used during working hours or privately (small fee for private use). A wide range of vehicles is available.

FUTURE Mileage allowance for bike commutes is in the works.

Car sharing makes it possible to use the right vehicle for the right trip: electric cars for short trips, hybrids for longer ones, diesel for even longer trips.

Today, large numbers of staff go to work by company car and don’t use their car during the day. A pilot scheme to incorporate these sleeping cars into the daytime car share fleet is going to be launched later this year.

“Switch programme”: Staff that drive an electric company car can use ICE-driven cars for longer trips over the week-end or during holidays.

FLEET EUROPE #97

Daiichi Sankyo is now offering employees a mobility budget through the Belmoto mobility card. They can still use their budget for a company car, but they can also choose a smaller vehicle, public transport, bike or any combination of these options. The company defined two basic rules. Firstly, employees can choose for themselves whether they enter the new programme or stay in the traditional car

Bicycle maintenance: people that use their private bicycles to commute to work, can have their bikes checked and fixed one or two times each month at certain sites. RESULTS Car share fleet 2016-2017: around 11 million km (private + professional), 30,000 users (out of 85,000 staff).

PROJECT Daiichi Sankyo used to manage mobility in the traditional way. Employees could choose a company car within a certain budget. There was no incentive to stay under budget so employees often chose a car that was oversized.

leasing scheme. Secondly, no one should be worse off in the new programme. RESULTS The mobility budget is proving to be very popular which helps raise the company’s attractiveness to new and existing employees. Employees can do their jobs more efficiently and no resources are being wasted. Unexpectedly, “older” employees often also go for a smaller car. FUTURE Daiichi Sankyo would like to offer mobility options that are not yet available through the Belmoto card. An interesting extension would be the possibility to use part of the mobility budget for courses for your own personal or business development.

FLEET CENTRE OF EXCELLENCE

Company name: Allianz Sector: Insurance Name: Franz Fehlner, head of international fleet Fleet size: 28,000 Mobility offering: company cars

FLEET EUROPE #97

PROJECT Allianz created a fleet centre of excellence to outsource fleet management. This centre is managed centrally by a team of experts on a global/regional base. The company also adopted group contracts with leasing companies and OEMs. Global reporting led to increased transparency. Finally, local car policies now include an environmental budget. RESULTS The introduction of global reporting led to 80% transparency in the first step. Thanks

to the group contracts, Allianz obtained cost savings of over 8%. Moreover, all processes were simplified. FUTURE Allianz is working on bundling all global fleet activities in the fleet centre of excellence. This will make processes less complex and it will lead to increased digitalisation and reduced costs. It will also include other fields of mobility and will look beyond CO2 emissions and new car models. Soon, bike lease programmes will be rolled out.

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SMARTMOBILITY

You will 'Netflix' your next car Frank Jacobs @Frank_J_Jacobs

People are less and less interested in owning cars, but still want to drive them. That opens the door to flexible solutions, in particular the car subscription model. Will you 'Netflix' your next car?

BMW and Mercedes have recently joined the select club of manufacturers offering cars on subscription. What exactly is it, why is it being offered, who are the players, and how relevant will it be to corporate mobility?

Spotify, Netflix or just about any smartphone subscription. Translated to cars, the subscription model lets customers avoid the downsides to both ownership (large down payments, high insurance premiums) and leasing (long contract runs).

EASY TERMINATION Let’s start with the What. The three characteristics of the subscription model are: flat fees, no hassle, easy termination. For a fixed monthly amount, you get a car that is easy to exchange, plus a bundle of services, on a contract that can be cancelled on short notice.

RESTLESS CLIENTELE Which brings us to Why. Manufacturers are pioneering the subscription model to keep their increasingly restless clientele from defecting wholesale to sharedmobility solutions that have eliminated the need for ownership – think Uber, Lyft and more. To keep selling cars, they’re selling subscriptions to service packages, with car included.

That’s the convenience customers recognise from similar retail formulas, for

By taking out the hassle and adding the option to change models, the subscription model could prove very popular with consumers. However, there is a drawback: because of the services and options it typically includes, it’s generally more expensive than other solutions.

It’s no wonder that the first OEMs experimenting with the formula in North America and Europe are premium manufacturers. But the subscription model is not the sole preserve of OEMs. Start-ups, disruptors and lease companies are also getting into the game.

Porsche Passport offers unlimited flips on a wide range of models.

WHITE-GLOVE CONCIERGE Book by Cadillac was the first OEM-based subscription service. It went live in New

FLEET EUROPE #97

From 2019, get the new Volvo XC40 on subscription.

York at the start of 2017. For $1,800 a month, subscribers can switch up to 18 times a year between Cadillac models. Included: registration, taxes, insurance and maintenance, and a white-glove concierge service. The programme – which Cadillac says attracted 90% new customers – has since been introduced in Dallas, LA and Munich. On its website, the luxury brand envisages launches in 10 other European markets. Porsche Passport, launched in October 2017, offers subscribers unlimited mileage, unlimited flips between models, and a bunch of services, in two tiers: ‘Launch’, offering access to four models for $2,000 a month, and ‘Accelerate’: $3,000 for two more. The service area is currently limited to the Atlanta Metro Area. TWO-YEAR CONTRACT Volvo will join the fray from early 2019, when Care by Volvo will launch across the entire US, plus seven European countries. Uniquely, the subscription covers just one model: the new XC40 SUV. The two-year contract offers a well-equipped XC40 plus services for a fixed fee ($600 a month; $700 buys you an upgraded model and service package).

FLEET EUROPE #97

After the first year, drivers can upgrade to the new XC40. After the second year, they can buy the car outright, renew their subscription (and get a new car), or simply quit. The subscription comes with limited mileage (15,000 miles in the US) and an early termination fee. Both announced in March, Access by BMW and Mercedes me Flexperience are the latest entrants to the OEM subscription game. BMW’s solution will trial in Nashville, Tennessee. Mercedes will pilot its solution in both Europe and North America. Mid-market brands are likely to follow. The popularity of all subscription-based offers will depend on finding the sweet spot between (higher) price and (more) convenience. PREMIUM ELECTRIC As mentioned, it’s not just manufacturers getting in on the game. Lynk & Co, co-owned by Volvo and its Chinese parent Geely, is a new Chinese manufacturer launching subscriptions for its premium electric cars: this year in China, next year in Europe and the US. Customers can dip their toe in electric mobility and change vehicles – or terminate the contract – on a short-term basis.

PREMIUM SUBSCRIPTIONS: CADILLAC

$1,800/MONTH PORSCHE

$2,000/MONTH OR

$3,000/MONTH VOLVO

$600/MONTH OR

$700/MONTH 17

SMARTMOBILITY Leasing

expert Pascal Serres (Moby-D): “The idea of a subscription for mobility is to expand flexibility as much as possible. And, for a budgeted amount, to offer more than just a company car, facilitating all kinds of movement.”

Pay for mileage, not for the vehicle: Ricaricar comes close to the subscription model.

A US start-up called Fair offers subscription-like access to used cars for as little as $150 to $300 per month. There is no end of lease term, as contracts can be terminated at a week’s notice. And in Italy, RicariCar, offered by ALD, provides a ‘flexible private lease’ scheme which offers extra services and pay-per-use charging that comes pretty close to the subscription model. SUPPLY BOTTLENECKS In its experimental phase, the subscription model is aimed squarely at a niche market of customers who are willing to pay premium for no-hassle, on-demand Cars-as-aService (CaaS). If the model manages to generate lower price points and it achieves wider popularity, its success could create a few problems of its own. Just think: everyone will want a convertible in summer, and an SUV in winter. Such sudden surges in demand for similar types of vehicles will create huge supply bottlenecks. Perhaps the best way forward is to see CaaS not in isolation, but as part of MaaS (Mobility-as-a-Service), says mobility

HOW CAR SUBSCRIPTION WILL CHANGE MOBILITY • More flexible than typical leases. This could help OEMs push up sales, regaining the initiative from ride-hailers. • As switching cars becomes the norm, customers will want to subscribe to a brand, rather than own a particular car. • As such, CaaS will become a vital ingredient of MaaS. • The formula’s popularity will be limited by its price. The million-vehicle question: How much more will users pay for the convenience of a subscription?

At some point, Mr Serres predicts, corporate mobility users will have “an app or a card that will give them access to book cars, bikes, train or plane seats, and access to public transport.” Such formulas offer flexibility for the user, but also asset optimalisation for the provider. However, “they are still at an experimental stage. Tax and other issues still need to be sorted out.”

Consulting Car Rental

Ride-Hailing Holiday Company Car

Trucks

Chauffeur Flat Rate

Mobility Budget

MAAS PLATFORM Sixt is an example of a lease company that has already integrated the subscription concept into its wider offering, with a MaaS platform initiated in 2017 that has produced MobiFlex, a graded subscription model linked to a mobility budget. “In each grade – Economy, Premium, etc. – there is a group of cars to select from. Cars can be interchanged according to preference. We recommend that any savings be split 80/20 between employee and company. Employees can then have the amount paid out via salary, or converted into a private mobility budget,” explains Stuart Donnelly, Senior Director Group International Sales at Sixt. RANGE EXTENDER Another advantage of the subscription formula: you can leave the car keys behind when you go on holiday and pick up another car of the same grade when you return – saving subscription cost, parking fees and tax liability. Or, in countries that incentivise PHEV/EV mobility, the formula can be used to switch between electric vehicle in the week, and one with a traditional powertrain in the weekend. “In this way, subscription effectively works as a ‘range extender’ to electric mobility,” Donnelly says. When it comes down to flexibility, mobility by subscription may well turn out to be a lot more creative than Netflix…

Infinite solutions for infinite mobility. (Exciting products for every need – from six minutes up to six years)

FLEET EUROPE #97

SMARTMOBILITY

Looking for the IMP of tomorrow Frank Jacobs @Frank_J_Jacobs

A range of new mobility options consolidated into unified solutions.

XXIMO MOBILITY CARD

Innovation leads to fragmentation, fragmentation leads to consolidation. That, in a nutshell, is the story of Integrated Mobility Platforms (IMP). What's on offer, and where are these IMPs headed?

FREE2MOVE A subsidiary of French manufacturing group PSA, Free2Move aims to make mobility easier for both individuals and companies. The Free2Move app identifies all shared-mobility options in 17 cities across Europe and the US. This allows users to find, compare, book and pay for the cars, bikes or other means of transport best suited for their needs, straight from their phone. Specifically for corporates, Free2Move similarly gathers a variety of solutions under one brand, including Free2Move Lease (multi-make, full-service), Free2Move Connect Fleet (telematics) and Free2Move Fleet Sharing (car sharing).

We're slowly emerging from the wildest phases of mobility innovation, where every new product or service – car sharing, electric mobility, you name it – was a standalone solution, requiring its own key, card, software suite or online platform. Having all your solutions for leasing, fuelling, hailing, renting and sharing cars (and more) in separate silos makes as much sense as having 20 keys on your key chain. The market demands simplicity and ease of use. That's why the bewildering range of new mobility options is being consolidated into unified solutions – one-stop shops called IMPs. By integrating various modes of transport, IMPs create value in three critical areas: they simplify travel management and route planning; they make travel more efficient in terms of cost and time; and they provide solutions that can be tailored to the need of individual customers. But in a way, they are also a continuation of the twenty-key problem: IMPs are being established in various geographies, with different levels of integration, offering a range of non-identical value propositions.

A small sample of IMPs on offer includes Google Maps, which offers not only directions, but also suggests the means to get to your destination (by car or public transport, by bike or on foot); and similar solutions such as Rome2Rio, Citymapper, GoEuro and Qixxit. There's more, much more. For instance Olympus, which promotes itself as the single platform of exchange for providers and customers of mobility in Belgium. And don't confuse Moovel – a Daimler subsidiary focused on urban mobility – with Moovit, the world's largest public-transit mobility analytics company. At present, the providers of IMPs are as diverse as the IMPs themselves (see frame for examples of IMPs offered by a manufacturer, a rental company and a start-up). Further consolidation is likely to lead to streamlining of the variety in offerings in the future, which will enable a like-for-like comparison. Until then, potential customers are faced with a wide choice of players, none of which have yet emerged as a dominant player.

FLEET EUROPE #97

XXImo's product is not a fuel card with some extra services thrown in, but rather a mobility card, with fuel being just one of many options. From its start in 2011, the card was intended as an all-in-one platform to support multimodal travelling. In so doing, the XXImo Mobility Card replaces a multitude of tools to provide access to travel (by car, taxi, train, tram, bus and plane) and a means of payment (for parking, hotels and even lunches).

In a recent white paper on IMPs, consultancy Arthur D. Little identifies three business models:

The holding A company that integrates its own modes of transport into one platform, with third-party offers accessible only via their own apps. Examples include rail companies (e.g. Die Bahn in Germany) and traffic authorities (e.g. Transport for London).

The reseller A company that integrates its own transport modes, but also brokers for third-party offers. The user can book all services on the same footing. Examples: Moovel, Qixxit.

FLEET EUROPE #97

The card even tracks CO2 emissions, offers discounts at fuel stations and can be used to charge EVs. All costs are consolidated into a single monthly invoice. XXImo is expanding its business scope, and enters partnerships with other fleet and mobility suppliers. Recently Arval started collaborating with XXImo for the new Arval Mobility Card.

The operator A company that operates its own transport modes, as well as those from third parties. Examples: ITS Finland, S'Hail (Dubai).

Which model – and which IMPs – will survive? Arthur D. Little identified some factors for success, including: • Size: IMPs must be small and fast, launching early while remaining quick enough to adapt to new market developments. • Agility: don't fix the full plan of transport modes at the beginning, as priorities might shift. • Functionality: leverage local presence to offer wider functionalities, from info and routing over booking to payment. • Simplicity: gain user acceptance by keeping the customer-facing processes as simple as possible. • Personalisation: avoid complexity by offering to personalise the interface. • Security: IMPs should enhance the security and safety of their customers.

MAAS BY SIXT The Germany-based rental company offers corporate customers a worldwide MaaS solution, enabling them to rent or share cars or use taxis flexibly. The formula can be used as a company car alternative, reducing such problems as high taxation and low utilisation, as well as issues with parking and congestion. By effective-

ly offering a mobility budget, MaaS by Sixt can be used as an incentive to attract, motivate and retain talent – for example by transforming budget surpluses into extra mobility options. As a unified platform, MaaS by Sixt bundles the use and billing of various Sixt products in over 60 countries.

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SMARTMOBILITY

Mobility can be a risky business Jonathan Manning

It’s recommended to have a corporate policy in which possible issues with car-sharing and ride-hailing use are answered.

confidence in the quality of vehicles and in the fact that the drivers have a certain amount of training,” said Price.

Car sharing, ride hailing, public transport… employers still have duty of care responsibilities for their workers whenever and however they travel for business.

The rapid development of the ‘sharing economy’ is challenging corporate risk management and forcing employers to review fleet insurance policies. Traditional insurance of one driver per company car fails to address the risk faced by employees when they travel by car share, ride hail, bike hire or public transport. Yet corporate duty of care does not end when staff leave the office. Andy Price, managing director of Fleet Safety Management, said: “From a risk management perspective it’s very clear that the duty of care on the employer does not take into account the type of vehicle the employee is driving. The employer has the same duty of care whether it’s a companyprovided vehicle, a lease vehicle, a hire vehicle, a shared vehicle, or the employee’s own vehicle.” WHOSE VEHICLE, WHOSE RESPONSIBILITY? Honouring this responsibility becomes more difficult as vehicle ownership moves away from an organisation, and with it control. It’s a scenario already faced by companies whose staff fly abroad. How do employees get from an airport to their destination, and if they hire a car or take a taxi, how can they be sure the vehicle and driver are safe?

For the employer, honouring the duty of care principle becomes more complex in mobility management and as vehicle ownership moves away from the company.

“Some organisations, if they have been doing risk management for some time, will use specific taxi firms if they have FLEET EUROPE #97

He advised companies to develop policies that insist, for example, that employees always wear seatbelts, and that give advice on how to react if a taxi driver is behaving irresponsibly, such as using their phone. Such risks are amplified in the new mobility world, where employees will share rides with strangers or hire cars from peer-to-peer programmes. Price recommended that employers introduce policies which specify, for example, that business journeys can only be made in cars that meet a certain Euro NCAP rating, or have certain safety features, such as automatic emergency braking. On the insurance side of the equation, insurers are also starting to address the same challenges. RETHINK RISK MANAGEMENT Torbjörn Magnusson, vice-president of the industry trade body, Insurance Europe, and president and chief executive officer, If P&C Insurance, Sweden, said: “Once mobility services are used instead of buying or owning your own means of transport, the need for traditional car insurance decreases. Instead, insurers need to look at new types of business concepts/models with those providing the cars.” The switch from one vehicle, one owner, one driver (where blame for vehicle FLEET EUROPE #97

damage and personal injury is straightforward to attribute) to one vehicle, one owner and several drivers requires a fundamental rethink of risk management. Eric Scrayen, director, VHS, said: “Insurers, car share companies and employers need to find ways to manage risk when they have much less control over individuals than they would with a one-driver-one-car scenario. When the situation gets impersonal the risk is less controllable.” TRACK AND TRACE Daily rental companies provide a blueprint for how insurance for shared cars might operate, but their infrastructure, overheads and procedures are at odds with the speed, convenience and low cost of car sharing. Car share fleets don’t have a check-in desk to verify driving licences, take credit card details and inspect a vehicle for damage at the end of every rental. “Who is going to take care of these processes at a company? Everyone wants to get rid of this non-core business, but you need somebody to do the administration,” said Scrayen. “From a performance perspective and a risk management perspective it can all be done, but you need efficient tools to track and trace and allocate risk premium.” VHS is engaging with IT specialist Cegeka to explore smart solutions for each link in the insurance value chain.

“We are working with technologies that will try to facilitate a new kind of risk assessment and insurance protocol. The concept of micro-insurances will increase greatly and will give more opportunities for mobility within car sharing.” ACCURATE MICRO PREMIUMS His colleague, Tim Jacobs, architect in emerging technology, Cegeka, added: “In a micro-insurance context the insurance is limited in time and scope, so you have a premium that is fixed to the risk. Then by monitoring the risk you can adjust the pricing for the next time you provide insurance. It’s a self-learning model; machine-learning from driver telemetry can predict the risk that someone will cause an accident at a given time and given trajectory.” This means the same driver could pay different hourly premiums depending upon the time of day and route. It also paves the way for vehicles to have twin insurance cover, one for when the vehicle is standing idle, and driverspecific micro-insurance for when it is being used. Moreover, micro-insurance raises the possibility of drivers having several different policies from several insurers on standby in an ‘insurance wallet’ on their smartphone. When they need cover, they simply select the cheapest premium for that specific trip.

Rob Gielen, business development manager for applications, Cegeka, said:

SMARTMOBILITY

New mobility, new risks, time to reassess old policies Alison Pittaway

The rise of MaaS and the emergence of smart cities creates as much business opportunities as it generates risks. Don't get stuck in between.

The federal government in Belgium approved the concept of a corporate mobility budget scheme for employees on 16 March. It has yet to be legislated.

up their own rules that comply with their own policies and regulations in each location. NEW RISKS It could be argued that risks associated with mobility are covered in standard insurance policies and employment contracts but in the eyes of multinational laws, that’s a flimsy assumption to rely on. If an employer takes people out of private cars and forces them on to public transport, or alternative mobility solutions they are exposing them to new risks, such as terrorism attacks (like those recently in Brussels, Paris and London).

The increased interest in pushing mobility instead of vehicle ownership (or user-ship) from governments and employers throughout Europe is creating the need for companies to reexamine risk and legislation.

Cities around Europe have already introduced emission-free zones, congestion is a growing issue, as is parking, and employees and corporations alike are interested in addressing the issue of vehicle utilisation that dictates most vehicles spend 98% of their time parked while their owners or users are at work.

Safety first for new smart mobility.

But what about when other forms of mobility are introduced by employers to either replace of supplement the company car? Who is responsible if something goes wrong? It seems straightforward but the problem across Europe is that there is no standard legislation currently that covers new forms of mobility. The European Commission is working to address this fragmentation. In the meantime, corporations with cross-border interests are having to make

FLEET EUROPE #97

There are many benefits to be had from smart mobility initiatives – for employers, employees, cities, citizens and the environment but employers have a duty of care to their workers and have to be seen to be acting reasonably and responsibly. If they are to withdraw the benefit of company cars and “encourage” employees to adopt smart mobility initiatives, they must offer guidance and clarity on the safe and responsible use of each mobility initiative. They must also have systems in place for managing mobility, such as: • For carpooling, car sharing and shortterm rental: a system for checking driver’s licence, fines and points status. • For car sharing or ride sharing: a process for checking the legality and roadworthiness of any vehicle employees travel in. • Guidance on the dos and don’ts of ride hailing and how to ensure they end up with a licensed, legal and responsible taxi ride. FLEET EUROPE #97

• A list of approved providers of ride hailing and/or public transport services. • Offer to send them on a safe cycling awareness training course and pay for cycle safety gear (helmet, high-visibility clothing, gloves and so on). • Supplement or replace your employer car policy with a mobility policy. • A platform for managing mobility in accordance with the mobility budget and in compliance with tax legislation and social laws. MOBILITY TAX MANAGEMENT BDO in Belgium recently invested in start-up software company Eurides, which provides a complete mobility management platform. Erwin Boumans, tax partner at BDO Belgium, explains: “Before, we received a few questions a month about the issue of worker mobility. Today, there are ten times more. Together with Eurides, BDO can help and advice companies on legislation, mobility opportunities and tax issues. Indeed, “tax management” of different mobility solutions is much more complex than just managing a company car.” In terms of what a mobility policy should cover, BDO’s Erwin Boumans says: “A mobility policy should be more about answering open-ended questions than shifting liability from employer to employee.” There’s no doubt smart mobility is the answer to many business, economic, environmental and social problems we now face but it needs to be looked at as part of overall corporate social responsibility of every organisation. In that way, risk to reputation can be mitigated, downtime and lost productivity

minimised, legal action and health & safety penalties avoided. The best policy in terms of risk is to be prepared and not wait for something to happen before thinking about the wider implications.

TO INCLUDE IN YOUR MOBILITY POLICY • The choice to give up their company car in exchange for a mobility budget and details of what that would be and how they would benefit. • Details of mobility services and schemes available locally. • Putting in place and managing accreditation programmes for local mobility service providers, perhaps even including special rates and discounts. • Information about whether special insurance that covers car sharing or ride sharing is required and any other legislative data (don’t leave it up to them to find out – doing the work for them will make it a more attractive option and shed light on what risks the employers themselves must be aware of). • Comprehensive details of all safety measures they must take. • Any help that might be available from the employer in making travel plans and booking tickets. • Perhaps even offer as a benefit comprehensive travel and life insurance/assurance.

Hail to ride hailing

I care about choice.

Jonathan Manning

Ride-hailing services are challenging the need for pool vehicles and company cars, and delivering savings of up to 40%.

About 30km north-east of Los Angeles, California, at the base of the San Gabriel Mountains, is a small city at the forefront of the mobility revolution. A radical travel programme in Monrovia provides a blueprint for the future of business and private travel in cities around the world. The plan is forged on public-private partnerships and harnesses the latest technology to deliver cost-effective, congestion-busting travel for the growing city’s 40,000 residents. The GoMonrovia mobility programme lets business and private travellers access a ride-hailing service, provided by Lyft, anywhere within the city (or to medical

appointments up to 5km beyond the city limits) for a flat fee of just 50 cents (€0.40). In addition, more than 200 dockless hire bikes, delivered by bikesharing specialist LimeBike, are available for just $1 per 30-minute ride. KEY LINK IN THE MOBILITY CHAIN The programme is built upon background analysis which will chime with any fleet or mobility manager who has calculated the actual cost per mile of journeys made in depreciating company vehicles that stand idle for much of the day. Monrovia used to have a dial-a-ride public transport service that was not only inconvenient, but also expensive – costing about $19.70 (€16) per person per ride. “We kept thinking, there has to be a better way,” said Oliver Chi, Monrovia city manager. “As the Southern California population continues to grow, suburban communities are becoming denser and more congested. Through the GoMonrovia programme, we have worked to develop a new transportation programme that will provide greatly improved mobility options for the suburban user.”

Ride hailing is rapidly securing a greater share of business travel.

Monrovia’s example provides compelling evidence of how ride hailing can be a key link in the mobility chain, particularly for commuters and first and last mile journeys to public transport hubs. Employees are typically familiar with these app-based on-demand services long before employers introduce them, so the practical aspects of FLEET EUROPE #97

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The Hyundai 5-year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorised Hyundai dealer to an end customer, as set out in the terms and conditions of the warranty booklet. Fuel consumption for the Hyundai i30 Range: combined 3.7–7.1 l/100 km, CO2 emissions 96–163 g/km.

SMARTMOBILITY

ADVERTORIAL

CONCEDED EDITORIAL SPACE implementation are easy. A bigger challenge, potentially, arises when this type of service replaces not only pool vehicles, but also traditional company cars. LYFT Ben Sternsmith, area vice president of Lyft Business, said: “If you provide a national fleet to your sales team, cars that come with the job, companies are now saying to us, ‘what if you provided a stipend of credit for, say, $300 for people who live in New York, Los Angeles or San Francisco?’”

It’s easy and convenient to order a Lyft ride and track its arrival.

So instead of having a permanent company car, employees simply use Lyft rides to visit clients, and avoid the hassle of parking and owning a car. Their Lyft credit can be used for both business and private journeys, providing an all-encompassing, cashless solution for travel. “There are a fair amount of customers that are looking at replacing fleets today,” said Sternsmith. “Where you have large fleets of cars provided to employees, companies are very eager to pull that back because the cars are expensive and there’s [employer] liability. They would rather staff take Lyft rides.” Likewise, the practice of organisations keeping a pool fleet on standby outside their offices, often supplied by car hire firms, is under threat from the flexibility and cost effectiveness of ride hailing, said Sternsmith. Even daily rental firms are seeing the benefits of using ride hailing as a solution for the collection and delivery of customers and hire cars, “rather than use their own inventory to move their customers around with their own employees,” he added.

WHY RIDE HAILING IS GOOD FOR YOUR COMPANY • Convenience of calling a vehicle via an app and knowing exactly when it will arrive. • Consolidated monthly invoices bring much greater efficiency and transparency to employee expense claims. • Choose between ride category for budget or more luxury travel.

With 1.4 million drivers across North America, Lyft is well positioned to offer an alternative to the company car, and similar networks, such as Uber and Taxify, are growing rapidly in Europe. TAXIFY Taxify now provides ride-hailing services in 23 countries, and while its early corporate business wins involved replacing traditional taxi services, during the last six to 12 months it has started to see companies moving from their own fleet cars towards hired rides. “We have several examples of clients who are considering selling parts of their fleet and replacing it with Taxify services,” said Pavel Karagjaur, head of growth, Taxify. “When you’re dealing with bigger companies this process takes some time. But smaller companies are much more flexible in switching to Taxify for their daily drives to client meetings or appointments.” GREATER TRANSPARENCY The app-based service brings greater transparency to business travel than taxi receipts, with employers able to see the start point and destination of each ride, alongside its cost, in an itemised, consolidated monthly bill that replaces the headache of receipts, expense claims and reimbursements. Moreover, there’s no difference in business and consumer rates, so all prices are clearly visible in the Taxify app. “Businesses can opt to require a description from the user for every trip to get a clear picture for the reason. This will simply be a pop-up field for the user to fill in (‘client meeting’, ‘airport transfer’ or similar) before he confirms the trip,” said Karagjaur. Customers can choose between different vehicle categories, with cost-conscious clients opting for economy class rides while others select a business class ride. And a five-star rating by customers at the end of each ride reinforces the vetting that Taxify carries out on its network of drivers. So what kinds of savings are available from switching to a ride-hailing solution for business mobility?

Shell and NewMotion: charging into the future Following Shell’s acquisition of NewMotion, one of Europe’s largest providers of smart charging solutions, the two companies are now positioned to bring a complete EV charging offer. Customers now have the convenience to charge at home, at work or on the go.

of approximately 64,000 public charge points, using NewMotion’s roaming network and at selected Shell Retail forecourts. NewMotion plans to expand into other major European countries including increasing its offering in Southern Europe and the Nordics. With Shell and NewMotion, customers have the convenience to manage their fuel, e-charging and other mobility transactions with one payment card and one user portal. THE FUTURE OF TRANSPORT

Shell and NewMotion’s offer can help customers make the transition from internal combustion engines to EVs and hybrids. Since most people prefer to charge their EVs at home or at work, NewMotion offers charge points that can be installed at an employee’s home or fleet base providing all services that relate to hardware installation, maintenance, monitoring and administration. Charge points are connected to NewMotion’s software platform which enables fleet managers to see and manage their charging points and transactions through a user portal and mobile app. By using their Shell card, drivers will also be able to pay for charging on the go via access to Europe’s biggest network

Shell is investing in developing alternative fuels to help meeting rising demand for transport on the way to a low-carbon energy future. This will build on Shell’s existing oil products and retail business. The International Energy Agency estimates that the number of cars on the road is likely to double by 2050. Transport now accounts for more than one-quarter of the world's total energy use, and one-fifth of global energyrelated CO2 emissions. The way we move the world's growing population and goods must be balanced with efforts to reduce CO2 and local emissions.

ble this, along with developing a hydrogen infrastructure in selected markets such as Germany, California and the UK. Shell aims to be the partner of choice and one-stop-shop for the mobility needs of fleet companies. This means providing customers with products and services that will enable them to manage their fleets more efficiently and reduce emissions in the process. Integrating EV charging into its service offering is therefore a highly relevant and timely operation. Together with NewMotion, Shell is paving the way to providing these solutions today and for the future.

Electric mobility will have an important role to play, whether supplied by hydrogen or by battery. Offering a recharging network to fleet companies will help ena-

• Avoid the cost and liability of owning vehicles. • Avoid the inefficiency of company vehicles standing idle. • Boost confidence in the quality of the ride employees will use in unfamiliar cities.

“It depends a lot on the company they have used before, but we’ve seen switches that resulted in savings of up to 40%,” said Karagjaur.

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MORE INFO https://www.shell.com/business-customers/shell-fuel-cards FLEET EUROPE #97

SMARTMOBILITY

ECALL: MANDATORY FROM 1 APRIL ONWARDS

10 marvels of the connected car

All new cars that are type-approved after 1 April have to be equipped with eCall, an emergency communication device with an integrated SIM card. It allows you to contact the emergency services by pressing the SOS button positioned near the rear-view mirror – either for yourself or when you witness a road accident involving casualties. The most important feature, however, is something called ‘automatic crash

Every newly launched car comes with eCall from 1 April onwards, possibly saving hundreds of lives.

response’. Once the airbags in your car have been activated following an impact, the system establishes a telephone communication with a call centre while sending the car’s exact GPS location. When the car’s occupants do not respond, the emergency services are dispatched to the crash location, saving precious time and potentially hundreds of lives per year.

Dieter Quartier @DieterQuartier

Smart parking Embedded apps like Parkopedia and BMW’s ParkNow allow you to search for the nearest available parking spot in paying car parks. It displays their location on a map, their rates, opening hours and any applicable restrictions (e.g. height, LPG,…). You can even book your spot in advance and pay online, saving time and hassle.

Car makers, consumer electronics giants and telecom companies have been collaborating for over two decades to create today’s connected car. These are 10 ways in which fleet managers and drivers can leverage its possibilities.

If you ask people who ‘invented’ the connected car and when, not many will reply that it was in fact GM, already back in 1996. Their premium sub-brand Cadillac was the first to equip its models with a Motorola-co-developed system called OnStar – indeed, the predecessor of the platform-and-app which today comes standard on the majority of Opel and Vauxhall cars.

Navigation One of the most obvious advantages is that a connected car has access to real-time traffic information. It contributes to this information by sharing its location and speed for starters, but also by reporting any wheelspin and the outside temperature, for instance, indicating that there might be black ice.

Concierge services Booking a hotel room or a restaurant, finding the nearest cash dispenser or a pharmacist on call: many OEMs have a 24/7 call centre at your disposal. Once they have pinpointed what you are looking for, they send the location to your car’s satnav, again saving time, fuel and money.

Car sharing Sharing cars has never been easier, as there is no more need to hand over physical keys. The vehicle unlocks by means of a time and location-specific digital key that is sent to the user’s smartphone together with the car’s location. This feature also allows you to have packages delivered to your parked car.

In-car office management Users now have access to a number of Office features, such as their calendar. Meeting locations are automatically integrated in the car’s satnav. The car’s embedded voice recognition and AI allow you to perform tasks by talking instead of by touching, scrolling, swiping and other distracting finger movements.

Remote climatising 3 Plug-in hybrid and electric vehicles come with an auxiliary heating system – something you can also order on many conventional cars. An app allows you to set your time of departure and the desired cabin temperature. Naturally, you can also pre-cool the interior with the air conditioning. Less time and battery power lost, more comfort and safety.

Stolen vehicle recovery A connected car can communicate its exact location and heading to law enforcement should it be stolen. Furthermore, once the engine is switched off, it cannot be started again by the thief. This feature could save fleets lots of money in the shape of reduced insurance premiums.

As a matter of fact, the first generation of GM’s OnStar is the forefather of a feature we know by the name eCall (see box). Today, OnStar and its equivalents from other brands, like Volvo On Call, Mercedes Me Connect and Jaguar Land Rover’s InControl, offer much, much more than driver assistance in case of need. Connecting to each other and the world outside means cars make you save time, fuel and money, and avoid accidents.

Over-the-air (OTA) updates With vehicles being controlled by ever more complex electronics and drivers living a digital lifestyle, it is essential to keep the vehicle software up to date. No more wasting fuel, time and money by going to the dealer’s for the latest engine management or infotainment software, just park your car and download the update.

Fleet management Smart analysis and reporting tools allow you to optimise your processes and assets based on realtime and real-life data. For drivers, the advantage resides in the automated digital registration of rides – something which provides the fleet manager with a high level of transparency, too.

Predictive maintenance What may appear insignificant when observed individually can be a red flag when aggregated with data from thousands of other vehicles that report the same problem. Fixing the issue before it even occurs avoids breakdown and thereby downtime for the car and the driver, and it can help reduce a car’s TCO.

FLEET EUROPE #97

SMARTMOBILITY

Smart Cities ask for smart actions Tim Harrup Nice in France: ‘smart city, safe city’.

The first observation to be made about Smart Cities is that there is no definition, no boxes to tick, no ‘template’. Some attempts at definitions are quoted below, but the best place to start is by looking at what a few of the most enthusiastic cities in Europe and elsewhere are actually doing.

SMART CITIES FOR EVERYONE Speaking at the opening ceremony of Mipim, writer and speaker Adora Svitak urged planners and others to avoid elitism. “I want to make the case for adopting new eyes and ears so we may better see and hear all types of people.” She went on to say that the real estate industry had to consider all people’s need and not just “the right type of millennials, the kind of millennial who gets glorified for doing things others have been doing for generations… Designing for only a small sliver of the educated millennial population can provoke a backlash against the rest of the community.”

To further illustrate just how diverse the notion of Smart Cities is, a summary of the projects to have won the ‘Smart City’ awards at this year’s Belfius Smart Belgium event: Hainaut province won the ‘large city’ award for a project involving the drying of sludge from water purification stations, using geothermal and solar heat. Bonheiden was the ‘small cities’ winner for a project which is getting children to go to school by bike rather than in their parents’ cars. In France, there are a number of initiatives across the country. Grenoble is undertaking a project called ‘the ecosystem of the Alps’, which will see, among others, the development of an innovation valley, a citylab and a short circuit food production supply chain. Grenoble also has an ambitious mobility plan, with 300 km of bicycle paths with secure parking, 5 tram lines and a generalised 30 km/h speed limit. FOR THE PEOPLE, BY THE PEOPLE A little further south (and a little warmer), Nice uses the slogan ‘smart city, safe city’. This is based on a philosophy that the citizen has to be at the heart of everything

which is done. The inhabitants are not just consulted or informed, but take part in the decision-making process. Nice aims to have what it calls an active participative democracy by 2030, with citizens in the public bodies. But there is also a pragmatic side to this, as the deputy Mayor pointed out at the recent Mipim exhibition: it is not good to have permanent dialogue, because this inevitably leads to blockage; things have to be decided, and done. You also have to be honest enough to say what is good, and what is not so good in your city. Then benchmark (in Nice’s case it selects Milan and Barcelona for this). Nice also has a partnership with Cisco on the Internet of Things applied to urban management, and in 2016 it was voted 4th Smart City worldwide by Juniper Research, just missing out on the podium occupied by Barcelona, New York and London. And finally, while some cities (Brussels is an example) get very hot under the collar at the prospect of removing cars from some roads, Nice has managed to transform the whole of the city centre part of a major north-south thoroughfare – the Avenue Jean Médecin – into a tram only route. FLEET EUROPE #97

BUILDING AND DELIVERING FOR THE FUTURE The notion of Smart Cities also involves van deliveries. Coventry in the UK and Charleroi in Belgium are both looking at last-mile delivery solutions. Charleroi is set to make trucks stop at peripheral urban distribution centres, with city deliveries taking place by electric vehicle, motorbike or bike. This notion may also lead to a multiplicity of tiny ‘depots’ in cities for goods to come to, for retrieval by their new owners. According to a former Amazon executive, these depots could be as tiny and local as someone’s garage… Moving across the world, Singapore is looking at the transformability of buildings it is constructing now. The car-park of a new tower is designed, for example, so that it can be converted to other uses as personal car use decreases. MORE CARS… OR LESS? On the subject of cars, and with the inevitable growth of self-driving cars, people have worked out that they can bring a whole district to a halt by jumping in front of one of them, or throwing balls at them, to make them stop. So Singapore, for example, is considering a law to make ‘harassing’ self-driving cars illegal. Still on the subject of planning for cars, a speaker at a recent event organised by the RICS (Royal Institute of Chartered Surveyors) stated that we have to learn from the poor planning for electric cars. Cities have just stuck in some charging FLEET EUROPE #97

points here and there and clogged things up more. So for self-driving cars, and in particular those which are shared, calculations have to be made now, as to whether this will lead to more cars on the roads, or less. The prospect of more arises because with shared, non-owned cars, this form of transport will probably be cheaper than the subway, and certainly more comfortable. Help is at hand though, from the cars themselves: the real-time data they provide can be used in traffic planning etc., and indeed in planning what sort of buildings to construct, and where. Remaining with this, prior to an exhibition in Amsterdam, Austrian digital and mobility specialist Kapsch said: ‘Travellers need real-time information about transport options and multimodal route alternatives, including booking and payment services. Authorities and mobility operators need to manage traffic in real-time, based on current events and provide fast assistance in case of emergencies.’ FULLY COMPREHENSIVE CITIES The citizen, as has already been stated, is at the heart of Smart Cities. The European CEO of the ULI (Urban Land Institute) had this to say at the RICS event: ‘Cities are populated by people, businesses, visitors and investors. This raises the question of affordable housing. Solve this issue, and much of the rest falls into place. Densify cities (i.e. build vertically) because urban sprawl is no good for anything. Avoid the errors of the past such as out of town

shopping centres, which people had to go to even though there was no such thing as connectivity, and no suitable public transport’. In other words, people live in cities, so make these cities attractive to live, work, play and shop. Another piece of advice is to put the infrastructure to make cities in first – retrofitting is extremely complicated.

CONNECTED SERVICES The French city of Dijon, working with Bouygues Energies and services, has an ambitious plan to make technology work for the public services. It is to put into operation this year, a centralised and connected control point to better manage equipment and services allied to the public space. This will replace six current control points which independently manage Security, the Municipal Police, the Urban Supervision Centre, traffic, the Town Hall contact point, and Snow alert. This will be the first time that a project of this size in the domain of Open Data will have seen light of day in France in a public administration. It will benefit, among others, public safety, waste collection, street cleaning, general urban maintenance…

SMARTMOBILITY

LOCAL SUPPLY AND TRANSPARENCY Two more examples of what is being done on the ground: the Swedish city Gothenburg is establishing fossil-free energy districts (FEDs) to decrease the dependence on fossil fuel in a built environment. A unique local market is being developed for electricity, district heating and cooling, with partners. The objective is to see whether this marketplace can accelerate the transition to fossil-free fuels. Gothenburg also has a self-driving car trial with 100 cars. Further east, the Ukrainian city Kiev says it has a plan to incorporate the latest smart city technologies into all core city spheres to ensure greater transparency and accountability.

Fossil-free energy districts (FEDs) in Gothenburg

What can be concluded from all this? Firstly, that we are in the happy situation that our city leaders are embracing the need for change. And secondly, that the whole notion is so wide, that every city is trying something which suits its own case, and from these first efforts, best practice will no doubt emerge. Some 70-80% of the world’s population is expected to live in cities by 2030, so if we are to get all this right, the next decade or so may see our cities transforming at a scale and speed never seen before.

A FEW DEFINITIONS • A smart city is one that runs wisely, becomes efficient, saves resources and improves the quality of life of its residents and the environment…. (smartscities.com) • A city seeking to address public issues via ICT based solutions on the basis of a multi-stakeholder, municipally based partnership. (European Union) • A Smart City is an ecosystem comprising stakeholders committed to a sustainable development strategy conducive to harnessing new technologies for the benefit of its sustainability (economic development, social welfare and environmental responsibility) aims. (Smart City Institute, HEC Liège) Kyiv Smart City Concept 2020

Source: Kyiv Smart City FLEET EUROPE #97

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SMARTMOBILITY

Making smartphones better in-car tools

Today, the software allows iPhone and Android-based cellular devices to run approved applications using the car's human machine interfaces (HMIs). SDL wants to create an industry standard for the many in-vehicle interfaces, with the ultimate goal to provide an expandable software framework to both app developers and car infotainment unit engineers enabling a seamless integration of apps into the car.

Dieter Quartier @DieterQuartier

Bringing cars and smartphones together so that you can use your favourite apps in a safe, convenient and customised way: that is the goal of the open platform called Smart Device Link. What does it have in store to ensure you don’t get distracted?

In a nutshell • SMART DEVICE LINK (SDL) IS AN OPEN PLATFORM SUPPORTED BY DIFFERENT CAR MANUFACTURERS AND SUPPLIERS

No research has been done yet as to how many accidents are actually caused by drivers using smartphone apps behind the wheel. However, the US National Safety Council reports cell phone use makes drivers more accident-prone than drunk driving. In fact, a quarter of all accidents in the United States are caused by texting and calling – both handsfree and phone-inhand – while driving. The American cell phone-related death toll stands at 2,600 people per year. European statistics are still being developed.

Logically, these numbers trigger lawmakers and employers alike to plead for a total ban on smartphone use while driving. Others would call that short-sighted, as smartphones can actually contribute to driver safety. Their online navigation apps can warn for hazards, such as adverse weather, slippery roads, objects on the road, and route the car around traffic jams, saving time and fuel. The only condition for safe smartphone use seems to be that the driver does not manipulate his phone while driving. With Smart Device Link (SDL), he doesn’t have to.

• IT BROADENS THE CHOICES FOR CUSTOMERS IN HOW THEY CONNECT AND CONTROL THEIR SMARTPHONES WHILE ON THE MOVE • INDUSTRY ADOPTION OF SDL PROVIDES SIGNIFICANT BENEFITS TO DEVELOPERS INTERESTED IN CONNECTING THEIR APPS FOR SAFER IN-VEHICLE USE

The latest addition to the SDL platform is the popular navigation app Waze.

A STANDARD FOR ALL HMIS Smart Device Link (formerly known as AppLink) is a project initiated by Ford Motor Company about a decade ago with the goal of enabling existing smartphone applications to interface with vehicles. Wishing to evolve the company’s efforts in mobility and software, Ford contributed Smart Device Link into the open source.

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SDL guarantees a seamless integration of smartphone apps in the car’s HMI.

In practice, SDL creates a Bluetooth or wifi link between your smartphone and the car’s infotainment system, making it possible to perform all necessary functions via the vehicle’s centre display or steering wheel buttons. There is no need to take the risk of using your smartphone while driving: you can use your car’s interface to control your apps. Moreover, the onboard display shows the data you need in a way that is easy to view while driving.

that the driver is not tempted to reach for his phone.

SAFETY FIRST Smart Device Link also allows you to plan your route beforehand on your smartphone – which is always the safer option. As soon as you get in the car, the route is projected on the car’s infotainment screen. Should you already be on the go, you can also talk to your phone via your car’s embedded voice recognition (when present) and ask it to take you to the nearest petrol station, for instance. Or play your favourite driving music, without the need for any further manipulation.

MY PHONE, MY CAR Smartphones have become an extension of ourselves. We customise them on many levels, from appearance (pictures, colour preferences, …) to app settings and profiles. Smart Device Link enables app developers to bring that extension of you into the vehicle without exposing your data unnecessarily. Car manufacturers can complement their unique experiences and brands with your apps, rather than replace them.

Moreover, Smart Device Link blocks smartphone apps that can cause distraction during driving. The list of dangerous apps is infinite: Facebook, Twitter, Instagram, LinkedIn, and so on. Instead of just blocking the use of these apps, SDL can also mute alerts from these apps, so FLEET EUROPE #97

Safety is also about protecting against intruders. Connecting vehicles to a network opens the gate to a multitude of possibilities, but also to unauthorised access. Smart Device Link has built in cybersecurity features to shut down unauthorised external access and keep your vehicle’s control units safe, according to its makers.

The latest addition to the SDL platform is the popular navigation app Waze, which can now be accessed from your car’s central display using an iOS (Apple) device. Navigation instructions are spoken by your favourite voice through your car's sound system. You also get access to the accurate Waze Speedometer, Spotify integration, and "Talk to Waze"

voice commands. Another interesting app is ParkU, one of Europe’s largest parking apps allowing users to find, book and pay for six million parking spaces in over 30 European countries.

WHO IS BEHIND SDL? The SDL Consortium comprises members at 4 levels: Diamond (Ford, Toyota, Suzuki), Platinum (Mazda, Subaru), Gold (PSA Group, Nissan, TomTom, Pioneer, JVC Kenwood, Amazon, Denso, and others) and Silver (Clarion, Mitsubishi, and others). Logically, the higher the level, the more a member has to say in regard to the overall direction of the project. Members of the SDL Consortium work together on the advancement of SDL and on making the software platform the industry standard for in-vehicle application connectivity.

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Latin America on the move

In general, cities in better shape are more focused on the full integration of their transport systems, including a network of different modes: bus, subway, monorail, light rail, tram, as well as ride hailing services and bike sharing programmes. They also abide closely to timetables and have elaborated ticketing systems. As for challenges, much of Latin America lacks long-term planning (20 years or more), and this comes down to culture as well as the occasional concern over political and economic stability. However, confidence does seem to be improving, especially in South America.

Daniel Bland @danielblandbiz

As the world’s urban population grows, finding smart mobility solutions is of the utmost importance and this could not be more than true for Latin America, home to some 626m people.

BUS-RAPID TRANSIT (BRT) SYSTEMS Brazil was the pioneer of the BRT with its Rede Integrade de Transporte (integrated transportation network) in Parana state capital Curitiba which started more than 30 years ago. Since then, more modern versions of the BRT have been built, including the Transmilenio in Bogota and the Ecovia system in Mexico’s Nuevo León state capital Monterrey.

Transmilenio bus service in Bogota.

While the number of inhabitants in Latin America has increased about 10% since 2009, the size of its automobile and motorcycle fleet has jumped 40% and 300%, respectively, worsening traffic congestion, road safety, and air pollution. Currently, 39% of LatAm residents use public transport to commute to and from work, 22% use private transport, and 26% walk. About one in five do not have formal public transport within 10 minutes walking from their home, and 15% of those living in informal settlements have no access at all. With that said, some urban areas are faring quite well in terms of finding solutions for these gaps while others are not. Before highlighting these solutions, we should

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look at which cities are in need of the most urban mobility support by knowing how much access there is to public transit systems. According to information obtained from New York-based non-profit Institute for Transportation and Development Policy (ITDP), the international public transport union (UITP) and others, some of the cities in need of the most solutions in Latin America are Caracas, Buenos Aires, and Belo Horizonte (Brazil). São Paulo and Mexico City, the region’s two largest metropolitan areas, are also in need of solutions mainly due to their sheer size. Those faring better, on the other hand, are Santiago, Rio de Janeiro and Quito. FLEET EUROPE #97

CABLE-CAR SYSTEMS Another type of transport which can be highlighted is the urban cable-car system. While the first one, known as the Metrocable system, was developed in Medellin, Colombia, others have followed suit in Caracas, Rio de Janeiro, and other cities. Commonly used near informal residential areas along hillsides, the system usually decreases crime while increasing economic activity. BIKE-SHARING SYSTEMS In recent years, Latin American cities have experienced a rebirth in bike usage for daily transport. In cities like Bogota, Santiago, and Buenos Aires, this mode has reached a 5% share in terms of the mobility sector, something unthinkable only a decade ago. Among the systems available in LatAm are Ecobici in Buenos Aires, Encicla in FLEET EUROPE #97

Medellin (Colombia), Muvo in Bogota, and Bike Sampa in São Paulo.

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ECUADOR RIDE-HAILING SERVICES Like many regions throughout the world, the growth of mobile app-based ride-hail services have hit Latin America with some of the highly disputed areas being large cities such as Sao Paulo, Mexico City, and Rio de Janeiro.

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While US-based Uber is the dominant force in the market, especially in Mexico, Brazil-based 99 is nipping at its heels. The company was acquired by China’s Didi Chuxing this year and also has big name investors such as SoftBank and Apple.

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Meanwhile, São Paulo based Easy Taxi is also operating in several markets, including Argentina, Mexico, Bolivia, Panama, Brazil, Peru and Chile. PERSONAL CAR Finally, with nearly one in four people driving to and from work, we cannot go without talking about the car. Whether personally owned or given to you as a benefit by your company, there are numerous models to select from, especially in large metropolitan areas. In Brazil, LatAm’s largest vehicle fleet market, one thing to point out is the extensive use of sugar cane-based ethanol or flex-fuel vehicles. More than half of the country’s fleet is suited for use with any mixture of gasoline and ethanol. As for other “green” options such as electric or hybrid cars, not many are available in Latin America and those that are available cost quite a bit more than a standard car. The scenario may change soon, however, as a few new models should be arriving to the market by 2019.

As such, there is still much room for smart mobility solutions in the region, some of which are already popping up throughout Europe. Besides the emergence of full-electric, hydrogen, and solar powered vehicles, among those to look out for are selfdriving cars, connected vehicle fleets, and mass transit systems such as the personal rapid transit (PRT) or pod-cars that are being tested in England and elsewhere.

LOOK TO THE FUTURE Despite these solutions, the average commute time between home and work in Latin America is around 40 minutes or even an hour or more for some residents in large cities such as São Paulo, Mexico City, and Lima.

SMARTMOBILITY RUSSIA

Asia, the mobility growth accelerator

KAZAKHSTAN MONGOLIA

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Yves Helven INDONESIA

into account mitigating factors, such as the lack of macro-economic policies in Asia, inflation and a population that is growing older in countries such as Japan. Nevertheless, Asia has evolved from a “production” continent to a “consumption” continent, meaning that the continent’s growth is no longer dependent on exports. Proof of this is delivered by the Global Business Travel Association’s conclusion that Asians are spending more money on regional travel than on travel to Europe or the US – a recent trend, first noted in 2015.

Driven by urbanisation and GDP growth, mobility solutions in APAC are not optional. It’s the only way out for a population in need of mobility and for companies in search of efficiency optimisation.

Mumbai traffic jam.

Regardless of many articles written about Chinese electric vehicle start-ups and successful ride-hailing companies in Asia, the growing continent is still not taken seriously by many of the fleet managers. A Euro/US-centric approach is applied to Asian fleets, with a focus on traditional fleet management, which means: supplier consolidation, car policy harmonisation and savings initiatives. And of course, this is not wrong; many Asian fleets are managed locally by a triangle HR/Procurement/Tactical Fleet Manager in which the basics are not or badly covered. There is a lot of work to be done to reinforce the foundations and the

US/EU experience is valuable to transfer knowledge to Asian Fleet Managers. But at the same time, when the Global Fleet Manager limits her or himself to copying a continental mobility model in, say, Indonesia, she or he misses the point and will not achieve what’s most precious in Asian fleets: mobility and employee efficiency. It’s therefore useful to remind ourselves that Asia is different. THE ASIAN REALITY GDP growth: the IMF’s growth projections foresee a 5.4% GDP growth in Asia versus 2.5% for the US, 1.6% for the Euro Region, 2.0% for Canada. These projections take FLEET EUROPE #97

Urbanisation: The UN’s Economic and Social Council came to the following conclusion in their report of 07/03/2017: “The Asia-Pacific region has experienced rapid urbanisation and this trend is projected to continue in coming years and to bring unprecedented demographic, economic and social shifts.” Although Asia has been predominantly rural for its entire history, the near future will bring us urbanisation on a massive scale: two thirds of Asia’s projected population of over 3 billion people will live in an urban environment in 20 years’ time. The Asian Infrastructure Gap & Congestion: with GDP growth and urbanisation comes an increased need for infrastructure. The infrastructure gap is defined as the delta between the needs and the available infrastructure. The Asian Development Bank has, in its 2017 infrastructure report, quantified the infrastructure investment gap at $14.7 trillion for power and $8.4 trillion for transport. FLEET EUROPE #97

In terms of suppliers, Didi and Grab have the best developed platforms and the most users. Uber is a big player, but has decided both in China and in South East Asia to join forces with local players. Unfortunately, neither Grab nor Didi are focusing on corporate mobility, which leaves a void to be filled. In addition, we find many good local solutions, such as Go-Jek bike hailing in Indonesia.

As a result, peak hour travel time in tier 2 and tier 3 cities (i.e. cities with less developed public transit networks) today exceed an average travel time with 79% (Jakarta) to 134% (Hanoi) (source: Boston Consulting Group report commissioned by Uber, “Unlocking Cities”). WHERE DOES ASIA STAND ON THE USE OF ALTERNATIVE MOBILITY? Obviously, Asia starts with a lower percentage of car ownership than Europe or the US (Passenger Cars per 1000 people: US: +500; Western Europe: +400; Asian Affluent cities: +200; Other Asian cities: -100), which results in people being more keen to adopt alternative mobility. As a consequence, the success of the owned car for private users is much less than it is in Western countries or cities. Some examples:

• Sydney: own car is used for 69% of all transportation, public and shared transportation is used for 12% • Taipei: own car is used for 42% of all transportation, public and shared transportation is used for 37% • Singapore: own car is used for 32% of all transportation, public and shared transportation is used for 66% • Tokyo: own car is used for 12% of all transportation, public and shared transportation is used for 51%

Car free zones and promotion of walking and biking are also becoming more popular in Asia: Seoul, Shanghai and Tokyo are 3 good examples of cities that have been investing in pedestrian connections and bike sharing. WHAT CAN WE LEARN FROM EACH OTHER? Asia can learn from the Western world that the Fleet Manager can contribute to the success of her/his company by organising and formalising mobility; proper Fleet Management is too often not a recognised discipline in Asian corporates and even in local subsidiaries of global companies. In exchange, the US and EU can learn from Asia that the “one employee, one car” rule is not sustainable and that, at the end of the day, not fiscal regulations but demographics and mobility needs should incentivise corporates to implement mobility solutions. Another lesson to be learned for both Asian and non-Asian Fleet Managers is that it’s time to step away from individual initiatives: it’s far more useful and effective for companies to start grouping themselves and bypass the limits of isolated initiatives.

SMARTMOBILITY

BMW and Daimler to merge mobility services

Daimler and BMW join forces. Scale is crucial when it comes to developing sustainable mobility and monetising on innovative mobility services.

Frank Jacobs

connected mobility services, available at the tap of a finger.

@Frank_J_Jacobs

BMW Group and Daimler AG have announced they will merge their mobility services business units. The aim is not merely to offer customers a single source for sustainable urban mobility, but to strategically develop and expand the services – especially with regard to car sharing, ride hailing, parking, charging and multimodality. The merger of the fleet management and leasing services, with companies Athlon and Alphabet, is not included in the mobility deal. For months, rumours had been circulating about a partnership of some sort between DriveNow and Car2Go, respectively BMW's and Daimler's car-sharing subsidiaries. The recent buyouts of their respective partners – Sixt for DriveNow and Europcar for Car2go – was widely seen as a prepara-

FORMER OPEL CEO MOVES TO DOOR2DOOR Ten months after leaving Opel's CEO position, Karl-Thomas Neumann is joining the board of the company door2door and will be investing in the mobility start-up. Door2door develops software platforms for ride-sharing services, aiming to make it easier for cities to launch those services and to integrate them in existing mobility and public transport solutions. The company claims it can fill a niche in last-mile transportation, taking passengers from train or bus stations to their final destinations.

tion for the merger. The deal signed today merges both car-sharing providers but also goes much further, creating a 50/50 joint venture that combines the entire range of mobility services offered by both companies – who will remain competitors in their core business. Adding up all constituent services, the new joint venture will have close to 40 million customers, mainly in Europe. Scale is crucial when it comes to generating profit from mobility services. LEADING PROVIDER The joint venture's stated goal is to become a leading provider of innovative mobility services, by offering unique experiences to their customers and comprehensive support to cities, local governments and other partners on the road to sustainable urban mobility. Working in partnership, both companies will enable rapid global scaling of those services to address the challenges of urban mobility and the changing demands of their customers. The future, as envisioned by both BMW and Daimler, is a holistic ecosystem of intelligent, seamlessly FLEET EUROPE #97

STRONG FOCUS “This alliance will make it easier for our customers to discover the emission-free mobility of the future,” said Harald Krüger, Chairman of the Board of Management of BMW AG. “We will not leave the task of shaping future urban mobility to others,” added Dieter Zetsche, Chairman of the Board of Management of Daimler AG. The joint venture is strongly focused on developing sustainable, flexible and connected urban mobility, which both companies see as the key to the future. Specifically, the new company will work in the following five areas:

Multimodal and on-demand mobility: Developing intelligent and seamless connectivity between various mobility offerings, including booking and payment, as currently done by ReachNow (BMW) and moovel (Daimler). This will also offer possible solutions for the challenges of urban private transport.

Car sharing: Improving the utilisation of vehicles to help reduce the total number of vehicles in cities. Together, DriveNow (BMW) and Car2Go (Daimler) currently operate a total of 20,000 vehicles in 31 major international cities, with a combined usership of 4 million customers. Watch out, Uber!

Ride hailing: In total, 13 million customers and some 140,000 drivers

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already use the modern, practical and fast way of ride hailing via the apps mytaxi, Clever Taxi and Beat, or the privatehire vehicle service Chauffeur Privé (all Daimler subsidiaries). Innovative offers such as mytaximatch, in which random customers share a taxi at a fingertip, help eliminate single-user trips in inner cities, thus reducing traffic.

Parking: Building on the expertise of ParkNow and Parkmobile (both BMW), the aim here is to deliver ticketless, cashless on-street parking or offer help in finding, reserving and paying for off-street parking in a garage. The aim is to reduce time spent looking for the 'right spot' – cars searching for parking spaces constitute up to 30% of urban traffic.

EV charging: Via ChargeNow and Digital Charging Solutions (both BMW subsidiaries), the joint venture will offer easy access to the world's largest network of public EV charging stations (more than 143,000 charging points worldwide). If the as yet unnamed joint venture is approved by the relevant competition authorities later this year, both BMW and Daimler expect it will have a positive effect on their respective overall valuation and annual earnings.

BOSCH ACQUIRES CARPOOLING START-UP Automotive supplier Robert Bosch has acquired Splitting Fares, Inc., a small US carpooling services provider. Splitting Fares will be part of Bosch’s newest division Connected Mobility Services. The start-up was founded in 2015 and bases its services on an app that connects people who share the same route to their place of work or study. Carpooling may be harder to define or quantify than carsharing, but as mobility becomes more multimodal, its impact is increasing. According to experts, short-distance carpooling in Europe is about to be transformed by the market entry of big players such as Google's Waze and UberPOOL, which already have widespread activities in North America. Recently Uber launched Uber Commute in Singapore, a carpooling option aimed at Singaporeans going to and from work. And Google announced plans to bring carpooling to the UK, via the Waze app. Waze Carpool is already live in the US and Brazil. 45

BUSINESS

Make people move around without hassle Steven Schoefs @StevenSchoefs

The CEO of Athlon International, Gero Goetzenberger, is facing a number of important topics on his to-do list. These include the integration of Daimler Fleet Management into Athlon and the rise of mobility as a new ecosystem of opportunities. But the most important one is to further develop services that fit the needs of the B2B customer. “We had a very good 2017. We have over 380,000 vehicles, and realised an increase of 6% over the previous year. This shows we are focusing on our customers, while still working on the integration with Daimler Fleet Management. And as our customer base has been growing in all major markets, we are pretty satisfied with 2017.”

What is the ambition for 2018? “We are looking at further growth globally, focusing on Asia. On the product side we will be working further on our outsourcing and mobility offerings. We believe that the opportunities offered together with our shareholder Daimler provide us the opportunity for additional added value for our customers.”

Does this mean that we can expect new mobility products from Athlon this year? “Yes, we are rolling out more tools which will enable us to help customers with their fleets, or even manage them completely for our customers. We are also rolling out our corporate car-sharing solution and our new customer platform MyAthlon”.

Will this corporate car sharing be introduced into all markets? “It is already up and running in the Netherlands, Belgium and Germany and we

Where does Athlon stand on the promotion of alternative powertrains? “It’s all about offering our customers the best solution for their needs. We believe that these powertrains are absolutely part of the solution, both now and in the future. We were the first in Europe to order substantial numbers of Teslas, when no-one really believed in them yet, and we did the same with the Kangoo ZE and others. This is a question not only of the carbon footprint, but also of usage and TCO; charging is still a challenge too. The offering and availability is improving though. We expect a wider variety of EVs to hit the roads. From 2019 onwards our shareholder will enter the market with great products under the Mercedes-Benz EQ brand.”

Daimler and BMW are launching a joint mobility offering. How will this affect Athlon? “I expect it will strengthen cooperation opportunities, but will not change our situation very much. In the five pillars of collaboration - car sharing, ride hailing, parking, charging and multimodality Fleet Management is not involved.”

What is your greatest wish for Athlon, and for the industry as a whole? “Our wish is to enable people to move around hassle free, by offering complete and sustainable mobility solutions.”

Gero GOETZENBERGER, CEO of Athlon International: If he was not in the automotive and fleet business he would probably be out in nature, helping and supporting people as a guide.

are currently aiming to bring it to France, Spain and Italy. Final objective is of course to have it everywhere, but that will take some time.”

Has the integration of Athlon and Daimler Fleet Management been completed? “It has already been completed in a number of markets, and in these markets DFM customers are benefiting from a multibrand offering amongst others. Athlon customers are also benefiting from the capabilities of DFM. These benefits come in terms of ease of doing business and cost effectiveness. The total integration is expected to be completed by the end of this year. Once completed, we will be offering exclusively under the Athlon brand – the Daimler Fleet Management name will disappear.”

The volume of diesel vehicles in Europe is dropping. How do you see your fleet mix evolving? “Fleet policies are still focused on diesel, because of the lower CO2 emissions and the more attractive TCO. We believe that diesel will remain a key part of fleets for the short and medium term at least. Evolution very much depends on governmental decisions, of course, which are very hard to predict, and that is why we have to be flexible.” FLEET EUROPE #97

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FLEET EUROPE #97

BUSINESS

INNOVATION

The handlebars guide the way

It’s all about relationships

Benjamin Uyttebroeck @uytteb

Steven Schoefs @StevenSchoefs

Alessandro Grosso is the new Head of FCA Fleet & Business Sales EMEA. “We want to continue the strategy of having a simple but strong fleet policy based on products and people.”

“If both these elements are right, you can serve the customers correctly, with the right network and providing the right experience throughout the whole fleet cycle. We have launched two programmes across Europe in which product, people and customer experience come together, starting with the Drivers Club. Here we give user-choosers a powerful customer experience. Each year they can select a leisure gift in line with the level of the car, and they can use a ‘two for one’ coupon in restaurants in Italy. Special discounts are given for goods from our partners. We have around 5,000 members in Italy, of which 3,500 are very active, and we have launched in the UK, Spain and France. Every week a further hundred people join.”

And the second programme? “At the end of last year we launched the Privilege Programme. We have understood that by taking care of the employees of our major customers, we have another entry point into large fleets. Our programme creates a customer experience with the driver, the fleet manager and department, through our dealership network. We treat our customers’ employees as if they were FCA employees. We will also develop this outside Italy.”

Alessandro Grosso, FCA EMEA Alessandro Grosso is clear: “We now have to attack the fleet markets outside of Italy.”

Product, people and customer experience – is one of these absolutely critical for your development? “We have to concentrate on everything, especially outside of Italy. We want to improve our perception as a mainstream brand. We are aware that the TCO is critical and we are working very hard on all aspects of this. In product terms, we have

entered the premium segment, with the Alfa Romeo Giulia and Stelvio. We are also looking to make a breakthrough into fleets with Jeep. We received 18,000 orders for the new Compass model in three months in Italy alone, and fleet orders are now coming in from other markets. And then there is Fiat, where we have Tipo. Because of Tipo we have managed to reach a share of 33% in large fleets in Italy. And we are also doing very well with this model in the UK and France.”

How are you going to create fleet volume in the other markets? “We have to attack. We have a department to handle large customers at HQ and national levels, and a department for small enterprises. We have the best international key accounts team an OEM could have. So this means we have the products, and we have the people.”

In what way is your financing company Leasys an asset when it comes to fleet sales outside of Italy? “We consider our relationship with clients not as buyer/seller but as business partners, and so we give our customers the best solution for their needs. Leasys will be a part of this but we do of course also work with all the main leasing companies.”

How do you see the move towards mobility solutions within FCA? “We want to be at the centre of this transition. We have a partnership with the largest car-sharing company in Italy, and we are working on B2B carpooling projects. We are also working successfully on private lease, as we think this is the next big thing.”

FLEET EUROPE #97

Imagine handlebars with a built-in satnav system, throw in automatic headlights and make everything connected for good measure. That’s the Wink Bar, and it won the mobility & logistics prize at this year’s Morpheus Cup. Bridging the gap between talents and companies. That was the mission Fabien Amoretti set himself when he started the Morpheus Cup in 2015. It is a prize for students from over 100 university and graduate school campuses who get an opportunity to showcase what they are capable of to future employers. The 2018 Morpheus Cup was held in the prestigious Palais Brogniart in Paris on 12 April 2018. Around 200 students from all over Europe gathered for a day of networking and pitches. Candidates could compete in categories such as art, artificial intelligence, circular & green economy, customer experience, cybersecurity, deeptech, e-commerce, energy, entertainment & media, fintech, food & beverages, healthcare, human capital, IoT, mobility & logistics, real estate, retail, sport. In this article, we present you the entries in the mobility & logistics category. CONNECTED HANDLEBARS In Northern Europe alone, 127 million cyclists use their bicycle at least once a week. It’s a growing market, but one faced with a number of challenges. Bike theft is a problem, particularly in cities. Road safety and infrastructure is often fragmented or lacking. A group of students from the North of France saw an opportunity for a new product. FLEET EUROPE #97

The Velco Wink Bar won the Mobility & Logistics prize at the Morpheus Cup.

Pierre Regnier, Romain Savouré and Johnny Smith, students at Audencia BS, set up the company Velco to launch the Wink Bar, a connected handlebar they have developed. It includes a tracking system so you can easily find your bike when it has been stolen. It also features two very bright LED headlights that double as satnav direction indicators. No need to look at a screen, the lights tell you which way to go. The jury was impressed. Velco won the mobility & logistics category and they took home the overall bronze prize. CONNECTED KEYBOX How can individuals who want to share a car easily swap keys? KeyWave is the answer. It’s a small device on the car’s dashboard that acts as a secure and connected keybox.

CONNECTED SOLIDARITY Silverlining is an app to be used during terrorist attacks. Through this app, the authorities can send information regarding refuge, evacuation zones and first aid. It also lets people that want to offer help interact with those in need. ELECTRIC SCOOTER Robin Braem built the Maestra, a handy, fun and lightweight electric scooter for micro-mobility. What’s more, it looks cool, something that can’t exactly be claimed of certain Segways. A preproduction model is ready and Mr Braem has already sold a number of units in pre-order.

EXPERT

When car becomes mobility Alexander Unfried

The increasing complexity of tax regulations and their application raises a number of questions. With the support of PwC, Fleet Europe just released the 12th edition of the Fleet Europe Taxation Guide. This guide brings a comprehensive overview of company car taxation across Europe. We asked Alexander Unfried, Global Automotive Tax Sector Leader of PwC to detail trends in automotive car taxation. Alexander UNFRIED, Global Automotive Tax Sector Leader, PwC

Currently, taxes, especially vehicle taxes and fuel taxes, are often used as a steering instrument to promote vehicles with lower emissions. However, since these taxes are also an important source of state income, it remains to be seen to what extent the related rules and rates will be reformed in the coming years. It is to be expected that this tax revenue will decrease with increasing environmentally friendly fleets, but – as of today - this effect has been compensated by the prosperous economic situation and the associated private and business travel activities. Hence, tax revenues have even increased slightly. CONSEQUENCES OF ’DIESELGATE’ The effects of ‘Dieselgate’ are still a major topic in the automotive industry this year. Companies are confronted with the fact that diesel vehicles are losing value. This leads to lower residual values, especially for vehicles which will leave the fleet within the next one to two years. It needs to be awaited whether the respective governments will grant accounting or tax relief in one way or another to compensate for the disadvantage – at least for accounting or

taxation. One possibility could be of special depreciation in order to spread the effects over several years.

possible to predict in which direction the trend will go, even less whether there will be a solution at the European level. Finally, it cannot be excluded that additional or higher taxes on diesel vehicles may be introduced on city, regional or country level to achieve an indirect driving ban for diesel vehicles. As a consequence fleet managers should be aware of the increa-sing cost for diesel vehicles and reconsider their engine policy.

In addition, new technologies - like those related to the ‘Connected Car’ - are often accompanied by a number of legal questions and uncertainties. Especially when it comes to tax advantages and the longterm planning of using those benefits, it is not possible to rely on the status quo. As a result, fleet policies need to be reviewed and adapted more and more frequently in order to keep pace with current legal and technological developments.

TRENDS IN E-MOBILITY AND CONNECTED CARS An additional range of available electric vehicles can already be seen in 2018, and this trend will intensify in 2019. This is also interesting from a tax point of view, as many countries grant tax advantages for the purchase and maintenance of electric vehicles. However, we don’t expect to see a rapid change in the vehicle fleets, as the infrastructure for charging batteries is not guaranteed region-wide and additional charging stations need to be installed at the company car parks. This is associated with high investments.

TRANSFORMATION FROM CAR POLICY TO MOBILITY POLICY Just as the automotive industry is increasingly moving away from merely offering vehicles to a mobility industry with car-sharing solutions, etc., companies' car policies are changing into general mobility policies.

An additional challenge for the fleet management is certainly the tax treatment of company cars used by employees for business and private trips. Further mobility alternatives increase this complexity. Ultimately, all this has a significant impact on the total operating costs of company fleets, which – as is today - need still to be determined separately for each country. There is no improvement in this situation in sight, and it can even be assumed that the trend towards more complex and inconsistent taxation of company cars and alternative mobility solutions within the EU will continue.

NELEEAW SE R

On the other hand diesel vehicles still remain a very good operational and cost effective solution for fleets, especially compared to electric vehicles. Also, the discussion whether it is politically appropriate to compensate the lower value of diesel owners by public budgets may prevent governments to decide for any tax benefit for diesel vehicles.

THE BEST TOOL TO DECIDE ON THE RIGHT TAXATION CHOICES FOR YOUR CORPORATE FLEET All relevant info on company car taxation in no less than 23 countries in Europe, developed in close collaboration with the network of PwC.

In contrast to the public discussion about complete driving bans and stickers for diesel vehicles, German cities, for example, can currently only block single roads locally in order to achieve a steering effect and reduce traffic at extremely polluted points. In Paris, on the other hand, the city administration has decreed with immediate effect that no more trucks may enter the city area, but only small vans. London has introduced T-Charge and Ultra-Low Emission Zone targeting both diesel and petrol vehicles that don’t meet Euro 4 emission standards. At this point of time it is not

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However, the different tax laws of the individual EU member states and the associated tax policy make it impossible for companies to develop their fleet policy in a uniform way in Europe. Germany and France are an example of how

different taxation can be: in Germany, vehicle costs are tax-deductible as part of the operating costs, whereas in France, additional vehicle taxes are incurred for company cars.

FLEET EUROPE #97

IN COLLABORATION WITH:

ANALYSIS

The rise of corporate car sharing Frank Jacobs @Frank_J_Jacobs

Too often, car sharing is still seen as a solution primarily for individual mobility needs. Yet its corporate benefits can be substantial – reducing overall fleet size by up to 30%, to name but one advantage. Corporate car sharing does more than reduce Total Cost of Ownership (TCO). It can also be an effective, sustainable and prestigious component of a comprehensive Mobility management approach. All things considered, corporate car sharing can generate a quadruple benefit, points out a recent white paper by Mobility Tech Green (see frame).

100,000 SHARED CARS BY 2020

SINGLE-DRIVER CARS CAN BE REPLACED BY A SHARED CAR

2,000,000 EMPLOYEES WILL HAVE ACCESS TO IN-HOUSE SHARED CARS BY 2020

GROWING FASTER More and more companies are also reaching those conclusions. By some estimates, the B2B car-sharing market is now growing faster than the B2C one. According to Frost & Sullivan, the number of European corporates offering a car-sharing programme to their employees will rise from 200 in 2013 to 4,000 by 2020 – increasing the number of vehicles involved to over 100,000. To appreciate the total impact of that figure, consider that each shared car has the potential to remove up to 25 'single-driver' cars from the roads. European governments, too, recognise the potential benefits of corporate car-sharing. Some are already taking measures to swell the ranks of shared corporate cars. In the Netherlands, for instance, one of the elements of the comprehensive Green Deal, concluded between the government and a range of organisations in the private and public sectors, is the commitment to

Car sharing can reduce the size of corporate fleets by up to 30%.

increase the number of shared cars nationally from 30,000 to 100,000 – with corporates responsible for a large part of that total. TWO CATEGORIES Corporate car sharing comes in two categories: either as the provision of vehicles that are shared among employees and departments within the company; or as shared vehicles that are part of a wider car-sharing fleet. Car sharing of the first category typically is of the ‘return-loop’ type: shared cars return to the company car park. The other category of car sharing can be either fixed-location, like the first one, or of the ‘one-way’ type: the car can be dropped off at a different location than where it was picked up. Potentially, it could even be of the ‘free-floating’ type: neither pick-up nor drop-off location are fixed, as long as the car is within a predetermined wider area. Both systems have their own advantages and limitations, with the return-loop variety requiring the lightest-touch monitoring and management of shared-vehicle distribution, often resulting in the most cost-effective formula. Ease of use is not just relevant to those who provide corporate car sharing, but also

FLEET EUROPE #97

– obviously – to the users themselves. That’s why access to the shared cars is generally keyless, usually via either a badge with RFID technology, or via smartphone equipped with NFC technology, or simply via an app on the phone – also the most hassle-free way to book shared cars.

Arval Active Link, the app allows employees to open and close the car via their phone. The app will be introduced in Italy, then rolled out across Europe. According to the lease company, it's a great way to optimise the utilisation of Arval lease cars instead of leaving them idle in the company car park.

its consumer product, in both Madrid and more recently Lisbon, it is rolling out a corporate solution later this year – initially in Madrid. That solution, Emov says, will enable corporates, from large companies to SMEs, to save up to 50% on employee mobility, compared to conventional car and driver solutions.

CUSTOMISED SOLUTIONS When looking for car-sharing providers, corporates can turn to suppliers who specialise in the technology – think Mobility Tech Green, Vulog and others. Alternatively, there are car-sharing products and solutions from lease companies.

PARENT COMPANY An example from the OEM side: Emov, an alliance between Spanish mobility start-up Eysa and Free2Move, PSA's mobility subsidiary. After the success of

Car rental company Europcar is the parent company of Ubeeqo, the carsharing specialist the services of which include a solution geared towards business customers.

AlphaCity is Alphabet's corporate carsharing solution, and one of the first such products on offer from the traditional lease companies. Already available in nine markets, AlphaCity allows companies to share valuable assets among employees on demand. Alphabet offers in-depth analysis to produce a comprehensive, customised solution. As the next step, the BMW captive aims to market a multibrand version of AlphaCity. Earlier this year, Arval announced it would introduce Arval Car Sharing, an online car-sharing solution that allows employees to reserve a shared company vehicle for a set period of time. Based on

FLEET EUROPE #97

FOUR BENEFITS 1. Corporate car sharing allows fleets to maintain their present volume of travel while reducing fleet size by 30%. Obviously, this significantly reduces TCO. 2. Online booking and keyless access make corporate car sharing easy and convenient, both for administrators and users. 3. Experience shows corporate car sharing is a gateway for the introduction of electric vehicles into corporate fleets. Research shows that corporate fleets with a car-sharing scheme emit on average 15 g/km less CO2 than 'traditional 'corporate fleets. 4. It can be used to offer employees the use of corporate vehicles outside working hours. This could recoup between 20% and 40% of the vehicle's monthly hire costs.

ANALYSIS

SAVE THE DATE 27 / 28 NOVEMBER

barcelona SPAIN

For more information, please visit forum.fleeteurope.com

By 2020, shared vehicles could make up as much as 5% of Europe’s corporate fleets.

According to Frost & Sullivan, corporate car sharing has now moved out of the development phase and into the growth phase, in which, the consultancy estimates, consolidated annual growth rates will be superior to 70%. While shared vehicles currently still represent less than 0.5% of corporate fleets in Europe, that is expected to increase to 5% by 2020, by which time it is estimated that up to 2 million employees across Europe will have access to corporate in-house car sharing. DRIVERLESS MOBILITY The growth of opportunity will see a further increase in the number of corporate car-sharing providers – from various backgrounds – and in the range of solutions they present. But since the future hardly ever develops in a linear fashion from the present, it’s important that corporates looking for the best fit do more than keep an eye on car sharing as such. It is prudent to consider the impact of another megatrend on corporate car sharing in a few years’ time: the emergence of connected, driverless mobility.

The summit is ‘the event’ of the year where we have the best opportunity to meet with our partners, network with our peers and join plenary sessions to learn about the market. This is a really high ROI event and I’m very happy to see it growing every year.

“

Peter Szelenyi of Novartis European Fleet Manager of the Year 2017 Smart, driverless cars will drastically reduce the scope for traffic accidents (around 97% of which are due to human error). They are also a powerful ingredient of the Mobility-as-a-Service (MaaS) architecture and infrastructure that characterise the Smart City of tomorrow. In such an environment, driverless electric vehicles will be able to dynamically interact with the demand for mobility, showing up at the touch of a button, recharging themselves when necessary. Car ownership will become a hobby for nostalgics – and even single-user vehicles will become a thing of the past. This could put corporates at the centre of a whole new mobility ecosystem. Companies could become the natural locus for the provision of mobility services for its employees – both for professional and private purposes. Meaning that corporate vehicles could become a source of income. If corporate car sharing becomes a way to not just reduce cost, but even to turn a profit, then its continued growth looks more than assured.

FLEET EUROPE #97

ANALYSIS

Mobility is shared, electric and autonomous Frank Jacobs

Perhaps you did not think about this one: car sharing is really taking off in Moscow and other Russian cities.

@Frank_J_Jacobs

Sharing is the future of mobility. Quite appropriately, the principle of car-sharing itself is increasingly shared – with different providers, wider applications, new geographies. A sampler. With its struggling automotive market and infrastructural problems, Russia is an unlikely source of mobility innovation. Nevertheless, the car-sharing capital of Europe is… Moscow.

CAR-SHARING OPERATORS IN MOSCOW

25,000 DAILY TRIPS

TRAFFIC JAMS The Russian capital was recently named the world’s second-worst congested city (after LA). Car sharing was introduced in 2015 precisely to combat those traffic jams. Combine that with the rising cost of parking and maintenance, throw in active government support and you have a car-sharing boom. There are 14 operators in Moscow alone. The Russian capital has a bigger car-sharing fleet than any other city in Europe, and it’s used over 25,000 times a day. By year’s end, the total fleet is expected to reach 10,00015,000 vehicles. By 2023, car sharing will be common in most Russian cities, and operators will likely also offer related services (shared scooters, ridesharing, etc.) Having acquired scale and expertise at home, Russia’s car sharers may expand abroad – according to TrueSharing.ru, at least one is planning to move into Eastern Europe. Inversely, one Western player is looking to enter the Russian market,

which still has “huge growth and revenue potential”. CULTURAL SHIFT The same is true for the rest of Europe, and not just because the same conditions – cost, congestion, government support – also occur, albeit in varying degrees. It’s all part of a wider cultural shift, explains Alexandre Fournier, Marketing and Communication Manager at Mobility Tech Green: “Car sharing is part of the emergence of Mobility-as-a-Service, drawing on modern technology to enable access to car-based mobility without ownership.” Governments can provide a serious boost in this direction, as is also happening in France: “The Plan de Déplacement Entreprises, in force since the start of 2018, states that all companies with more than 100 employees must present a mobility plan to the government.” While not explicitly promoting any one solution, such a requirement will at least force companies to consider all their mobility alternatives, including car sharing. ARTIFICIAL INTELLIGENCE Mobility Tech Green, a leader in B2B car sharing in Europe, is one of the specialists working hard to help fulfill the demand for the transition to sharing-based mobility. “We’re on the verge of a new era in car sharing,” Mr Fournier says. “Thanks to Artificial Intelligence, cars will alert their fleet manager when they need maintenance – and automatically order a replacement for FLEET EUROPE #97

their driver. Even more: AI will advise drivers when they need to leave in order to beat the traffic to their next meeting.” Mr Fournier also predicts manufacturers will get deeper involved in car sharing – citing the recent merger of BMW’s DriveNow and Daimler’s Car2Go, enabling the new entity to take on Uber and other established shared-mobility players. Another path is for OEMs to acquire car sharers, as SEAT has done recently with Respiro, a Madrid-based start-up offering car rentals by the hour: “This is moving SEAT into position as VW Group’s mobility services benchmark in

Southern Europe.” STRONG ACCELERATION Any position within the car-sharing market is likely to be a crowded one, says Antonin Guy, VP Sales and Marketing at Vulog, a leader in shared-mobility technologies. “One of the major trends we see is a strong acceleration in the launch of new shared-mobility services in Europe, with a lot of new players entering the market, from very different industries: not just OEMs, but also car distributors, energy companies, parking operators, and so on.”

“On top of that, more and more operators are launching hybrid services: adding scooters to their fleet of cars, adding corporate car sharing to their B2C offering.” (see frames for a few examples). Last, but certainly not least: car sharing is a gateway technology for at least two others: electric, and autonomous mobility, says Mr Guy: “Most car-sharing services are now using EVs or hybrids. But OEMs have also understood that flee-floating car sharing is the first step towards autonomous mobility, so all of them are investing heavily in this area.”

Location: Antwerp Fleet: 200 VW e-Golfs and 150 Audi A3 g-trons

Location: Budapest Fleet: 300 VW (e-)Ups

Location: Paris Fleet: 50 scooters

Launched in January 2018, Poppy offers instant access to free-floating car sharing throughout Antwerp. The company uses the expertise of D’Ieteren, importer and distributor for VW Group in Belgium – pointing to the role distributors can play in the shared-mobility future.

The free-floating initiative, operated by Hungary’s largest energy company Mol, shows the interest of non-mobility players in entering the fast-changing shared-mobility market – in this case, offering an oil and gas company the opportunity to work towards operating a full-electric fleet.

Coming soon to Paris: Troopy, a three-wheeled scooter easily reserved online, enabling users to whizz through the famously frustrating Parisian traffic rather than get stuck in a car. Shared scooter schemes like these show that sharing is not just for cars.

FLEET EUROPE #97

MANAGEMENT

20 Jaguar I-Pace EVs and 100% EVs from 2019 on Stijn Blanckaert

SAP Labs France announced recently that it had pre-ordered no less than 20 Jaguar I-Pace EVs and decided to only allow 100% electric cars to be ordered for its fleet from 2019 on. A bold move that is the culmination of a process that started some four years ago, CEO Hanno Klausmeier and COO Christoph Gussenstaetter explain.

2014: THE FIRST EVS IN THE FLEET In 2014, Klausmeier started with an electric car programme within the company fleet. The reason was a legislative one. The French region Alpes Maritimes, where SAP Labs France’s head office is based, obligates companies with a fleet of more than 50 company cars to have at least 5 fully electric cars, so they had no other option than to comply, but in the meantime, SAP and the local management also believed in the necessity to do their bit in the quest for a cleaner future. A total of 6 Renault Zoë EVs were ordered and the same number of charging points were installed on the company premises by 2015. Soon, five employees were found willing to trade in their conventional company car for a Renault Zoë, and a sixth car was ordered as a pool vehicle. The early adopters were motivated by several incentives amongst which free electric charging cards, free charging

FLEET IDENTITY CARD SAP LABS FRANCE Employees: 400 Activity: Research on software security (part of SAP) Fleet: 270 company cars on 3 sites (Mougins, Paris, Caen) Funding: 100% operational leasing (Parcours, subsidiary of ALD Automotive) Brands: 50% German, 30% French, 20% other

at work and a company paid wall box at their private homes. At SAP Labs France, employees with a conventional company car have no private mileage fuel card paid by the employer, so those who chose an EV optimised their salary accordingly. 2016 - 2018: NO DIESELS ANYMORE Not even two full years later, SAP Labs France decided to drop all diesel vehicles from the car policy and chose to only allow brands that also have fully electric vehicles in their product range. The enthusiasm and conviction that electrification is the way to go grew steadily, and at the beginning of 2018, already 58 of the 270 SAP Labs France company cars are EVs, from a Renault Twizy over the Smart Electric Drive, VW e-Golf, Nissan Leaf, Kia Soul EV, Mercedes B-Class Electric Drive, BMW i3 and even Tesla’s Model S. The number of charging points on the company grounds grew, and two fast chargers were added to the other ones, bringing the total cost for SAP LABS France for the charging infrastructure alone at around €300,000. 2019: ONLY EVS ALLOWED SAP Labs France’s electric car programme will culminate in the total ban of ICE cars in the company car fleet. Every company car ordered from 2019 on will have to be an EV. A bold choice that shows the management’s willingness to innovate, not only in software development but also in fleet management. The drivers are motivated by a series of measures including free charging cards and the possibility to use a car with an internal combustion engine for a fixed FLEET EUROPE #97

7 TIPS FOR FLEET ELECTRIFICATION BY SAP LABS FRANCE 1. Be ambitious: do not limit yourself to marginal choices, go all the way 2. Provide incentives: motivate your employees to switch to EVs with specific incentives 3. Build infrastructure: provide enough charging points, on company premises and the employees’ homes, and follow-up on charging point use, a charging point is no parking spot 4. Communicate and integrate : integrate your fleet electrification into your CSR approach 5. Optimise: negotiate prices with your leasing company. Electrification is in their interest too 6. Knowledge is everything: know and calculate your Total Cost of Ownership 7. Economies are made in the long run: do not expect immediate savings. At first, electrification demands investments (charging infrastructure, incentives, communication)

number of days per year when needed for long distances or specific purposes. The decision to go fully electric is not a financial one, although economics play their role, Klausmeier and Gussenstaetter say. They emphasise the fact that a transition like the one they are going through is a costly investment in terms of time and implementation, with a return that is not immediately reflected in the TCO of the fleet, but will be in the long run, on top of the fact that this choice fits within the global approach of Corporate Social Responsibility and reducing the carbon footprint of the company. Even if this approach is welcome in terms of marketing, it is driven much more by pure conviction than by opportunism. Given the fact that SAP France normally follows the fleet trends set out by SAP Labs France, it is expected that the total number of electric cars in the total SAP fleet will grow even further. FLEET EUROPE #97

Left to right: Simon Dransfield of Jaguar-Land Rover and Christoph Gussenstaetter and Hanno Klausmeier, COO and CEO of SAP Labs France in front of the all-new Jaguar I-Pace at the Geneva International Motor Show.

JAGUAR I-PACE The I-Pace is Jaguar’s first EV and the first European electric premium SUV. It will be available from July 2018 on. It features a 90 kWh battery and two electric engines on the front and rear axles, making it a four wheel drive. The engines produce a combined 400 bhp and a maximum torque of 696 Nm allowing a sprint from 0 to

PRE-ORDER OF 20 JAGUAR I-PACE As proof of the commitment to go electric, SAP Labs France announced at the Geneva International Motor Show where Jaguar’s new EV was presented for the first time, that they had just pre-ordered no less than 20 new Jaguar I-Paces for their fleet. The cars are a valid alternative to the management’s Teslas and will

100 km/h in 4.8 seconds. According to the WLTP driving cycle Jaguar announces a total range of 480 kilometres, which makes it a genuine alternative for diesel or petrol powered SUVs. The boot can contain 656 litres and five adults fit in the interior. Prices start at around €72,500.

be driven by a number of employees that already confirmed to switch to the I-Pace following a detailed calculation of the cost and personal contribution taking into account the different ecobonuses put in place within the company. All cars will be leased through ALD Automotivesubsidiary Parcours.

MANAGEMENT

Telematics data is personal data Jonathan Manning

New Europe-wide data protection rules will have a direct impact on how fleet operators gather and process telematics data.

25 May 2018

GDPR COMES INTO FORCE

GDPR FINES UP TO

OF GLOBAL TURNOVER OR

€20MILLION

The General Data Protection Regulation (GDPR) comes into force in European Union member states on 25 May 2018 and will force companies to be meticulously careful when handling personal data. It applies to all companies processing and holding the personal data of data subjects residing in the European Union, regardless of the company’s location.

WHAT IS PERSONAL DATA? Djamel Souici, general counsel at telematics specialist Masternaut, said: “GDPR extends the definition of personal data to include digital identifiers such as IP addresses. Identifiers in telematics systems that correlate data and drivers, including information on location, speed or driving events, may thus be personal data.”

The regulations also give employees and private individuals much clearer rights to explore how their data is stored and used.

This does not mean that fleets have to stop gathering this data, but they do need a lawful basis for processing it, said Souici, and they face extra responsibilities to guard it and to respond to driver enquiries and concerns.

Failure to comply with the rules could lead to heavy fines of up to 4% of annual global turnover or €20 million (whichever is greater). Significantly for fleets, the GDPR covers far more than personal data, such as name, address, salary and bank account details. From next May, any information that can identify individuals directly or indirectly will be classified as personal data, and this includes data generated by in-vehicle telematics systems. With the definition of personal data changing, much of the telematics data that transport companies hold may fall within the scope of the new regulation and the relationship between the fleet operator and its drivers will therefore become even more important.

The new General Data Protection Regulation obliges companies to seek consent to capture and hold driver telematics data.

“Several options are available as the basis for processing, including driver consent; the performance of a contract; compliance with a legal obligation; to fulfil a task in the public interest or to pursue legitimate interests,” he said. If the telematics data is being used for contractual reasons, such as to record driving time because the driver is paid by the hour, then the collection of the data ought to be covered by the contract of employment. Similarly, fleet operators could reasonably claim ‘fraud prevention, security and safety’ as a motive to collect and process telematics data, said Souici. FLEET EUROPE #97

DRIVER CONSENT But, “in the absence of a contractual or legitimate interest basis, operators must seek driver consent, which has to be specific, unambiguous and freely given,” he added. “Drivers should know what is captured and why, as well as what happens to it, and who it will be shared with. Such consent should be documented and ideally incorporated into employment, supplier and driver contracts.” The GDPR insists that driver consent has to be a positive opt-in, said Anthony Monaghan, senior vice president of the insurer Marsh. In a 2017 survey by the British Vehicle Rental & Leasing Association, drivers were overwhelmingly happy to share their data if doing so helps to diagnose or prevent faults with their vehicle (95%), automatically alerts a breakdown company (93%) or helps a manufacturer identify safety and warranty issues with its parts (82%). But their consent waivered when it came to sharing data about their driving behaviour and performance (44% ‘not comfortable’) or selling data about their location, local weather conditions or vehicle performance (36% ‘not comfortable’). FLEET EUROPE #97

RIGHT TO ACCESS The GDPR will also ensure drivers gain extra rights over access to their data.

other systems. Are they proportionately collecting data or are they collecting data that might not be directly necessary for the purposes of our processing?”

“Be prepared for drivers requesting to see their data and have systems in place to facilitate this,” said Monaghan. “Designate someone in your company to take responsibility for data protection compliance.” Moreover, it must be as easy for drivers to withdraw their consent as it is to give it. This extends to ‘Data Erasure’, the right for people to be forgotten and have their data erased – including historic data. The GDPR doesn’t just apply to data captured after May 2018, it includes data that has already been gathered and stored. “The whole point of the GDPR is that it makes companies think more about their data processing, how they protect privacy and how they protect personal data,” said Bram Wallach, product management, Sofico. “It’s much more of a risk-based process. The key point of the GDPR is that the accountability is now with the data processor and controller to demonstrate compliance.” “Companies now have to review their internal processes, data flows, the systems where master data is being kept, and how it is being replicated to

MANAGEMENT

Prepare for impact Dieter Quartier @DieterQuartier

The question that is probably burning on your lips, is how WLTP will impact your fleet over the next months – not least financially. The answer is very complicated, but one thing is for sure: it will hurt.

Since September 2017, OEMs must test and publish consumption and emissions results for newly launched vehicles according to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). In September 2018, the WLTP applies to existing models, too, meaning they have to be remeasured according to the stricter protocol – with the exception of a limited number of run-out series.

Data is scarce, but judging from the first WLTP cars on the market, it is plain to see that there are winners and losers. Automotive intelligence company Autovista Group has calculated increases in CO2 from NEDC to WLTP of 25 percent – which is higher than the predicted overall rise of 19 percent. To be fair, Autovista points out that this increase is based on a sample of 6,000 built vehicles from just 11 manufacturers, and takes into account the impact of options. The latter aspect makes the transition between NEDC and WLTP all the more dramatic, but also very complicated – for OEMs, data suppliers and leasing companies. GENERAL UNAWARENESS During an international presentation of a certain new Swedish SUV a few months ago, Fleet Europe asked attendees – all representing major fleets – how they think WLTP and the resulting higher CO2 values would impact their car policy. Remarkably, many of them took a resigned attitude – whatever will be, will be, right?

WLTP and RDE are causing bottlenecks. BMW will even suspend production for several weeks.

When confronted with the facts – an average increase of 25 percent between NEDC and WLTP – it slowly started dawning on them that the effects could be far more painful than they expected. The fact that some optional equipment can heavily impact a car’s official CO2 rating means that taxation will certainly increase, especially when a car is pushed over a certain threshold. Moreover, companies that apply CO2

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WLTP might cause fleets to limit the number of options because they have an impact on the CO2 value.

categories will have to recalibrate their entire car policy. SUSPENDED PRODUCTION The introduction of WLTP coincided with that of the Real Driving Emissions (RDE) test, which makes things all the more complicated for car manufacturers. The RDE requires them to take every single model with every single powertrain on public roads for emission assessment. This will lead to serious type-approval bottlenecks. Moreover, petrol engines now need particulate filters to comply with the latest Euro 6d-temp emission standards, requiring extra engineering and development efforts. Volvo and BMW are among the first car makers to 'convert' their line-up to WLTP. The Bavarian carmaker recently announced it plans to take a number of versions of the X1, X2, X5, X6 and 7 Series temporarily out of production in June. “Depending on the version of the model and its volume, the interruption could last between a couple of weeks and a few months,” a spokesman told German magazine Automobilwoche. That too causes concern for lease companies and their customers. UNEVEN PLAYING FIELD September 2018: that leaves carmakers just four months to get their entire range

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type-approved. They had better get a move on, then. There is a disadvantage of being among the first, though. “Carmakers that switch to WLTP now have a competitive disadvantage vis-àvis the ones that wait until the very last moment. The correlated NEDC CO2 values, which are derived from the WLTP test data and are applied by most member states as a temporary taxation basis until 2019, are in most cases higher than the ‘true NEDC’ CO2 values,” explains Samuel Keates, Director of Specifications at Autovista Group. “The playing field is uneven. Consumers and fleets will be tempted to buy older cars with a more attractive, i.e. lower ‘true NEDC’ CO2 rating, whereas the newer, WLTP-rated cars could be cleaner and by no means less fuel efficient,” he adds. According to Dutch media Fleet&Mobility, car makers have been lowering the prices of their WLTP models to compensate for the increased taxes and avoid losing market share, keeping a close eye on the competition.

jumps, but chances are it will scratch you in the face – and make you bleed more than when you approach your leasing company or fleet management partner today to analyse the effects and respond. Some companies, like Cisco Systems, stick to the CO2-based vehicle categories currently in place, regardless of the fact that some cars will fall by the wayside. They are however working out a new two-step change to their policy: in September 2018, they will take into account the correlated NEDC values, and in January 2019, they make the switch to WLTP. And why not consider alternative solutions, like CNG, hybrid or even electric? With the introduction of WLTP, they may offer a better TCO outlook than conventional cars. Your car policy will require overhauling anyway and with connectivity and electrification in mind, it is probably a good idea to tackle all in one swoop and take a long-term approach.

TAKING THE BULL BY THE HORNS Autovista Group is convinced that OEMs will find solutions to optimise WLTP results – just like they have been doing since the introduction of NEDC. But how to face the facts here and now? You could just wait and see which way the cat

MANAGEMENT

Still missing customer centricity from OEMs André Gilbert Latendorf

The stellar rise of e-mobility forces the OEMs to rethink their customer approach and adapt their business model. One key requirement is to become more customer centric, but there is still a gap between the desired objective and received customer feedback. The current exponential rise of e-mobility and its potential effects on customers and society just make it clearer how slow the incumbent automotive business model reacts to changes in customer behaviours and requirements. This becomes even more obvious when speaking to fleet customers. OEMs are investing heavily in electromobility in order to produce cars with longer range so potential future demands can be met. However, customers seek answers today and based on their judgement OEMs are still far from being able to provide sufficient answers, in particular when it comes to mobility requirements and regardless of the current product and production capabilities or technical constraints. Many fleet customers state that a change in the business model is taking place and the manufacturers needed to act rather than wait for things to happen. Their main request to the manufacturers is to think more of mobility solutions rather than providing a perfect car as it had been the case and focus in the past. UNDERSTANDING MOBILITY REQUIREMENTS Fleet customers need to make investment decisions today and require substantiated input and competence in order to help

them make a decision. E-mobility or not, for the majority of the fleet customers their car park serves a business purpose and they want to optimise that aspect. But if the OEM’s sales force does not understand the purpose, how can they help find a solution and propose a way forward for their customers? SHIFTING ROLE AND REQUIREMENTS FOR THE SALES FORCE? In order to tackle that challenge, the OEMs and in particular their sales organisations need to face and address two challenges, first being able and second being willing to find and provide solutions for the fleet customer with their current product range. It may sound trivial, but it does not seem so in many cases. Understanding complex mobility requirements, supporting investment decisions and providing industry relevant expertise goes far beyond simple training requirements. Despite the fact that current sales training curriculums are not designed to cover those aspects, it also calls for a new set of people to deal with those aspects. Dealing with these complex elements requires consulting rather than sales competence and that must necessarily affect the recruiting parameters for the OEMs. This may require hiring new personnel or drawing in existing personnel with a different skill set. There are many OEM in-house consultancies, the question is, can they be deployed and do customer front-line work in order to develop solutions for them, without having to fulfil a quantitative sales target? Today, consulting and sales are neatly separated entities.

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Another aspect is that the fleet manager may not be the right person to speak to? If mobility is a corporate topic, the dialogue may need to take place on a higher level within the organisation – another indicator that a different role and responsibility is required. ADAPTING THE INCENTIVE SYSTEM For the second challenge, it is necessary to modify the incentive and motivation scheme for the sales organisations. The standard key performance indicator for the sales force is the number of units sold. But if that is the target, why would it be important to understand the intricacies of a fleet customer’s mobility issues? Why would it be important to save the customer some money? OEMs need to listen to their customers before pushing the start button.

The key challenge is to find the balance between long-term strategic development and short-term operational targets and there is yet no perfect solution that fits all companies. However, it is necessary to address this issue and reorient the sales organisation in order to face current and future customers’ challenges and stay in the game, particularly in this fast-changing world. As long as the number of units sold (monthly most of the time) is the driving force in a sales organisation, this will remain a key motivational factor regardless of the attitude and skill set of the sales personnel or consultant. WORKING WITH THE CUSTOMER Working with the customer and adopting a customer centric approach does not necessarily mean abandoning the technological leadership or reverting to a completely reactive approach. Transmitting that thought into today’s world, it does not mean for an OEM to only rely on what the customers say, it means to not completely ignore their wishes either. It does not mean to have customers being part of the product and solution development team, but it could mean to cooperate with the customer in a different manner. Many customers and especially fleet customers state that product development is very engineering driven, particularly for electric vehicles. When

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customers are asked for their feedback they are already presented with a fourwheel solution. In order to provide mobility solutions, the OEMs may need to take two steps back and enter a dialogue with the customer on a different level. In order to understand today’s and potentially tomorrow’s mobility needs, the OEMs need to address that topic in a product independent way. There may be unexpected and different mobility requirements or driving patterns. There may be industry specific needs (parcel services, food transport, city shuttles) that abandon the basic four-wheel concept. In this way they may be able to understand and address specific mobility requirements and in a subsequent step play out their engineering skills and develop solutions for them. Supplier integration has been a part of the automotive business model for quite some time. It may be time to extend that idea to integrating the customer into the solution development in a similar manner. THE CUSTOMER MAY HELP TO REGAIN THE COMPETITIVE ADVANTAGE Understanding the customer’s mobility issues and requirements may be the competitive edge in the future, as it was a perfect engine in the past. If today’s OEMs do not provide the answers for

the customers, they will look for solutions elsewhere. This is only the start of a changing business model and the impact on the operating procedures and sales personnel requirements will be more drastic in the upcoming years. A shift in the mindset is needed, from providing cars for customers to developing solutions with the customers together. Customers state that they would appreciate more interaction with the OEM in order to address their needs. The question is, who of the incumbents is willing to listen and to act first on that?

POTENTIAL STARTING POINTS FOR OEMS • Organise workshops with customers in similar industries or with similar usage patterns in order to discover specific needs. • Seek a dialogue with the customer’s upper management about the mobility needs of today and tomorrow regardless of the car park or of current deliveries in order to become a strategic partner. • Re-evaluate the current incentive and motivation scheme keeping the corporate strategic orientation in mind and unite long- and short-term objectives for the sales organisation.

MANAGEMENT

REMARKETING

Question to OEM (Headquarter (HQ) and national (Imp) level: “How would you rate your knowledge of your customers’ e-mobility needs?” Question to Customers: “How would you rate your OEM’s knowledge of your e-mobility needs?” ANSWERS

What's new?

KEY FINDINGS

JÖRG HÖHNER HEADS AUTOLYTICS AutoFacets, a global leader in digital automotive solutions, appointed Jörg Höhner Global CEO AutoLytics and CEO DACH. He will be responsible for the global leadership of AutoLytics, AutoFacet’s business intelligence and analytics platform, and for the AutoFacets operations in Germany, Austria and Switzerland. Jörg Höhner joins AutoFacets from Autorola Group where he was Global Managing Director INDICATA.

100 90

• 55% of the national sales personnel considers their competence at least very well developed, but only 5% think that way on HQ level and 30% of the customers.

80 70

Perfectly well developed

Very well developed

Reasonably well developed

Somehow developed

Not developed at all

No answer

• 15% of the fleet customers consider their counterparts to have no knowledge about their e-mobility requirements and 50% consider that knowledge not even reasonably well developed.

Jörg Höhner, Global CEO AutoLytics and CEO DACH

Imp

Cust

LIDL TO START SELLING BMWS Lidl supermarkets in Germany will offer young used BMWs, according to German media. The Schwarz Group, the holding company of Lidl and Kaufland,

is swapping its Audi company cars for BMWs. After 18 months, the cars will be offered to Lidl customers in Germany. LAUNCH OF MARKETPARTS.COM Nexus Automotive, an international buyers' consortium for aftermarket parts, has launched Marketparts.com, an online B2B platform for buying and selling after-market products. The new platform is aimed at automotive materials distributors and wholesale groups that are members of Nexus Automotive, a group that numbers around 120 companies globally.

All people were asked what their favourite e-fleet-manufacturer was. Based on own market research and customer interviews in Western Europe Sept ’17 – March ‘18.

Thanks to our advertisers in this issue Would you like to advertise in our next editions? CONTACT David Baudeweyns Sales Director dbaudeweyns@nexuscommunication.be

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Improve your knowledge with the International Fleet Managers Institute! 2018 AGENDA > IFMI Digital Masterclass: 17 May 2018, 2:00 PM > 2:45 PM How will WLTP impact me? > IFMI Digital Masterclass: 27 September 2018, 2:00 PM > 2:45 PM How to electrify my fleet? ORGANISED BY

> IFMI Masterclass: 27 November 2018, 8:30 AM > 5:30 PM How to prepare my fleet and mobility programme for the upcoming challenges? For more information, visit ifmi.fleeteurope.com WITH THE SUPPORT OF

COLOPHON EDITORS Steven Schoefs – Chief Editor sschoefs@nexuscommunication.be Céline Gilson – Project Coordinator cgilson@nexuscommunication.be Benjamin Uyttebroeck – Journalist buyttebroeck@nexuscommunication.be Christine Germain – Editorial Manager cgermain@nexuscommunication.be CONTRIBUTORS Stijn Blanckaert, Daniel Bland, Tim Harrup, Yves Helven, Frank Jacobs, Jonathan Manning, Alison Pittaway, Dieter Quartier EXPERT André Gilbert Latendorf Alexander Unfried (PwC)

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Pictures: ©Shutterstock Layout: Cible - www.cible.be SALES & MARKETING David Baudeweyns – Sales Director dbaudeweyns@nexuscommunication.be Saskia Lannau – International Key Account Manager slannau@nexuscommunication.be Daniel Savigny – International Key Account Manager slannau@nexuscommunication.be Vincent Degives – Marketing Manager vdegives@nexuscommunication.be Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be

Aline Verpoorten – Internal Sales Assistant averpoorten@nexuscommunication.be Laura Petit – Sales and Marketing Assistant lpetit@nexuscommunication.be ADVERTISEMENTS SEAT (2), ŠKODA AUTO A.S. (4), Alphabet International (9), Daimler AG (14-15), Sixt (19), Volkswagen AG (22-23), Hyundai Motor Europe (29), NewMotion (31), Verizon (37), Enterprise (47), Kia Motor Europe (68)

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