Fleet Europe °111

111 11/2019

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

PREMIUM BRANDS Leading in safety, new energy and MaaS

FINANCIAL MODEL

Nexus communication - Fleet Europe #111- Periodic magazine - NOVEMBER 2019 - Deposit Office X

Marco Lessacher, CEO of Alphabet

AUTONOMOUS

The short term scenario

LAST MILE

The road map for smart parcel delivery

BENEFITING FROM THE CONNECTED FLEET • Ensuring Last Mile & Parcel Delivery efficiency • The future called 5G • Innovation in connectivity • Connectivity versus data privacy

JOIN THE CONNECTED Parcel Delivery & Last Mile BRUSSELS 28 & 29 JANUARY 2020 FLEETS CONFERENCE http://conference-fleeteurope.com

CONNECTED 4-27 4 8

New 5G technology will benefit fleet and mobility management

Cars connected, benefits collected Everyone knows the biblical saying ‘You shall reap what you sow’. Translated to the modern age of connectivity, you could say the yield depends on the amount and type of data we share.

As to our cars, they need to communicate with infrastructure for the sake of safety, charging and efficiency.

10 How cars become a marketplace Imagine this: your car notices you’re running low on fuel. When you park at the office, it summons someone to fill up the fuel tank. No need for you to be there – your car sends its GPS location. This is only one example of how cars are becoming a marketplace. Keywords: trust and transparency.

14 How connected vehicles will change fleet management

22 100% GDPR compliance is impossible Fleets increasingly rely on telematics to improve efficiency and cut cost. How does that intersect with the security of their data and the privacy of their drivers? Blockchain and GDPR provide some of the answers – but questions remain.

24 Harmonising fleet data through connectivity Making sense of fleet data and using it to provide business advantage and value for customers is a new ball game that demands harmonisation of data flow.

26 Premium today, mainstream tomorrow

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Premium does not only mean state-of-the-art design and topnotch materials, it’s also about immaterial aspects like services and digital features to woo the discerning customer. These four connected innovations are ‘wow’ today and could become mundane tomorrow.

Who gets to monetise fleet data?

28 How connectivity is serving last mile mobility

COLOPHON SALES: David Baudeweyns, Elke Leën, Daniel Savigny, Sven Van Rossum, Aline Verpoorten, Estelle Remacle

FLEET EUROPE #111

CHIEF EDITOR: Steven Schoefs PROJECT COORDINATOR: Céline Gilson EDITORS: Benjamin Uyttebroeck, Dieter Quartier, Yves Helven, Frank Jacobs

MARKETING: Vincent Degives, Virginie Emonts, Benoit Delisse

CONTRIBUTORS: Stijn Blanckaert, Daniel Bland, Shane Curran, Tim Harrup, Jonathan Manning, Alison Pittaway, Mark Sutcliffe, Fien Van den Steen

PICTURES: ©Shutterstock

PUBLISHERS: Caroline Thonnon, Thierry Degives LAYOUT: Cible - www.cible.be

TO CONTACT OUR TEAM: FirstletterfirstnameLastname@nexuscommunication.be 2

NEW ENERGIES 30

Plug by example with these Premium SUVs More affordable EVs were the main theme at this year’s Frankfurt Motor Show. Still, there were a handful of premium plug-in hybrid newcomers that did not escape the junior, middle and senior management’s attention.

SAFETY

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Electrified Premium novelties for 2020

Say Safety, say Premium Premium carmakers have a reputation of asking money for every single feature they can, including in the safety department. Be that as it may, it is also the premium OEMs that invest the most money in innovation and in the end contribute to more safety for all.

MAAS 36

Premium brands and the Mobility challenge Luxury carmakers are developing new products and lifestyle experiences to compete in a market where private car ownership no longer exists.

FINANCIAL MODELS

38 First interview with Marco Lessacher, CEO of Alphabet International

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New Athlon CCO On 1 October, Marchel Koops took over from Peter Derks as Athlon’s Chief Commercial Officer. A thumbnail portrait.

REMARKETING 46

“Digital integration is the way forward” Performing 500,000 vehicle inspections each year makes Macadam one of the largest players in the industry. “We are a market leader and a trendsetter,” says Bertrand Donck, CEO.

SHARED MOBILITY 48

40 Why leasing and rental will converge with Michel Taride and Pascal Serres .

Define Mobility, create Mobility tools With traffic congestion soaring and increasingly strict environmental standards in cities, the car may not be your most attractive urban mobility mode. How should you go to the office then?

AUTONOMOUS 50

Partial autonomy is closer than you think Think the arrival of autonomous and connected vehicles on Europe’s roads is still years away? Think again.

Discover more news, features and analyses on the Fleet Europe ecosystem on our website:

44 The remedy for drivers being ‘clueless’ about Fair Wear & Tear

COURAGE MOVES YOUR BUSINESS FORWARD The All-New ŠKODA SCALA

FLEET EUROPE

www.fleeteurope.com • Fleet Europe Magazine • @Fleet_Europe • FleetEurope • contact@nexuscommunication.be Fleet Europe is published by Nexus Communication SA - Parc Artisanal 11-13, B-4671 Barchon (Belgium) - T +32 4 387 87 71 - Fax +32 4 387 90 63 Fleet Europe is registered and copyrighted trademark. Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

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TAPPING INTO 5G POTENTIAL Alison Pittaway

We’re used to tech launches accompanied by hype, often at unjustified levels. The latest smartphone, cloud service and wearable technology may all be very interesting but are they really going to change lives?

So, while its impact cannot be played down, what exactly is 5G and why should fleet managers care?

Like it or not, 5G is set to precipitate a digital revolution in fleet management from which there will be no return.

Fleet managers throughout Europe will have to quickly become acquainted with new technologies, systems and processes, or employ those who are.

No wonder, then, there’s a certain whiff of nervous tension around 5G’s impending delivery.

What’s on the other side of that revolution, however, is that 5G will bolster communication between people, vehicles, products and networks. The technology will support the next phase of IoT by delivering astonishingly high data rates, potentially ten times faster than what’s currently available (1Gb/s instead of 100Mb/s). 5G will also provide cost and energy savings, larger system capacity and monumental device connectivity. It will lead to seamless, end-to-end, real-time visibility and connection.

FLEET EUROPE #111

How is 5G different from what we have now?

Firstly, rather than relying on high-powered cellular towers, 5G will use many more small cell, low-powered base stations to transmit millimetre waves.

This makes it a denser infrastructure but that means it can deliver better performance while consuming less power.

Millimetre waves are broadcast signals and while they require a much denser infrastructure, they enable many more users per network. Full duplex capability will allow data to be received and transmitted simultaneously.

receive data at rates of up to 1Gb/s while travelling at speeds of up to 160mph (257km/h). A fleet of vehicles connected to the same network was able to share ultra-HD 4K video in real-time.

Derek Bryan, VP EMEA, Verizon Connect, thinks of the vehicle as the workspace of the future: “Another potential outcome of mainstream use of 5G is the use of the vehicle as the centrepiece of a mobile working environment, enabling it to serve as a single point of contact for all types of connectivity. Integrating additional technologies like inventory control using RFID, wifi and online capture of data and quick information exchange will further solidify the vehicle as the workspace of the future.”

According to an opinion piece from consultancy firm Northstream, 5G outlook in Europe, out of all European operators, so far Vodafone in the UK, Italy, Germany, Spain, Romania and Ireland, Deutsche Telekom in Germany, Telecom Italia in Italy, EE and 3 in the UK, Swisscom and Sunrise in Switzerland, Elisa in Finland, T-Mobile in Austria, Digi in Romania as well as Monaco Telecom in Monaco have launched commercial 5G networks as of the time the report was written.

When will 5G be available?

The EU has so far invested 700 million euro in 5G R&D. And Samsung has sold two million 5G phones and has predicted that figure will double but the end of 2019.

EE was the first company to launch a 5G network in the UK, initially targeting a small number of cities. Vodafone is not far behind. 3 is planning a 5G launch but is behind EE and Vodafone.

O2 has been working with Millbrook Proving Ground, providing 5G network connection since June 2019. Earlier trials at the facility in partnership with McLaren saw a supercar send and

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“Thanks to 5G technology the car will become the centrepiece of mobile working.”

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Specifications, features, and equipment shown are based upon the latest information available at the time of publication. Official combined fuel cosumption for the Volvo XC models ranges from 1.8 – 8.3 L/100 Km / 34 – 156.9 UK mpg / 27-21 US mpg depending upon powertrain variant chosen. Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market and may be shown with European specifications.

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position on the road relative to other vehicles and/or obstacles. They will know when traffic lights change and respond appropriately. They will also know when to change lanes and pull off the road into a carpark or driveway.

What are the drawbacks of 5G? The advent of 5G indicates yet another major ‘rip-out-and-replace’ scenario for carmakers and operators that have already endured the same issue with the switch from analogue 2G connections to digital systems.

Arguably, it’s correct to take a cautious approach to any new and as yet unproven technology, but given 5G’s potential and the impact it will have, fleet managers would be wise to give it serious attention and start planning for it now. The headache of so doing could be far outweighed by the opportunities it brings.

Autonomous mobility will only benefit from the introduction of 5G technology.

What are the advantages of 5G for fleet managers?

One of the key advantages for fleet managers is real-time response, which is particularly pertinent to vehicle safety and collision avoidance but it also has valuable implications for realtime vehicle performance data.

Vehicle broadband access can enable maintenance notifications and video streaming vehicle checks (handover checks, damage logs, rental return checks and so on). Low tyre pressure could direct the driver to the nearest service station.

Other potential new and extended applications for fleets are:

FLEET EUROPE #111

• • • • •

Driverless fleets Vehicle safety and collision avoidance Virtual and Augmented Reality M2M communication V2X

HOW SHOULD FLEET MANAGERS PREPARE FOR 5G?

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Set new business and IT goals based on the potential of 5G. How will you use it to take your business to the next level?

present network infrastructure to find out what hardware, 2 Audit software and services you might need in preparation for 5G. Build out a phased plan of upgrades that will follow the trajectory of enterprise 5G adoption.

for the data avalanche - 5G has the potential to deliver 90 3 Prepare billion terabytes by 2025. Decide what data you need to collect and what can leave out?

new technologies and business processes - moving mis- 4 Adopt sion-critical applications to the cloud, build relationships with entrusted cloud supplier.

- many inherent security vulnerabilities are yet to be 5 Security discovered so there are heightened security risks that fleet mana

gers may not be prepared for. This is a strong argument for going slow with 5G adoption.

Using the 5G network to communicate with each other in nanoseconds, autonomous vehicles will know their

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*Max. 150,000 km vehicle warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar). Deviations according to the valid guarantee conditions, e.g. for paint and equipment, subject to local terms and conditions. The WLTP combined cycle range for the e-Niro is 455 kilometres (282 miles) for the long-range 64 kWh battery pack, and 289 kilometres (179 miles) for the standard (39.2 kWh) battery pack. The specified driving range values were determined according to the legally prescribed measurement procedures (EU) 2017/1153. The above values have been tested in the new WLTP, Worldwide Harmonized Light vehicle Test Procedure, test cycle and converted back to NEDC, New European Driving Cycle, in addition measured according to the RDE, Real Driving Emissions method.

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CARS CONNECTED, BENEFITS COLLECTED @DieterQuartier

Everyone knows the biblical saying “You shall reap what you sow”. Translated to the modern age of connectivity, you could say the yield depends on the amount and type of data we share.

As to our cars, they need to communicate with infrastructure for the sake of safety, charging and efficiency.

The driver defines the time slot during which his EV’s battery can be used by the grid operator.

FLEET EUROPE #111

Safety in numbers Gone is the time that cars are standalone systems. Today they can communicate remotely with their maker (OTA updates), their owner (telematics), their driver (vehicle app) and the emergency services (eCall). Tomorrow, they will talk to infrastructure and to other cars for the sake of road safety, traffic flow and driver comfort.

By networking cars, OEMs like Audi, BMW, Ford, Mercedes-Benz, Volvo enable a thing called swarm intelligence. A single car can detect a hazard, such as black ice or a car parked on the shoulder of the motorway and warn the rest of the ‘swarm’ through the cloud. Together with Here Technologies and TomTom Traffic, these carmakers are piloting a pan-European project to share such traffic

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safety data, not only generated by cars, but also by infrastructure.

This kind of V2X networking is the cornerstone of autonomous driving in the future. Other applications include on-street parking: the cars in the swarm report when they pull into and out of a parking space. An algorithm uses this information and statistical models to calculate the number of

HOW AI WILL MAKE FLEET LIFE BETTER Connectivity opens the data flood gates and makes Artificial Intelligence all the more relevant, not least in the mobility scene. How? Dr. Ing. Steven Peters, Manager AI Research at Daimler AG, explains in 5 answers to 5 questions.

By integrating your fleet data with those of your suppliers, AI could create huge efficiency gains, explains Dr. Ing. Peter Stevens.

available parking spaces on the roadside and drivers receive information on their chances of finding a spot.

Charging means sharing The switch to sustainable energy production and e-mobility go hand in hand. EV batteries can be connected to the power grid to store solar and wind power at off-peak times – either to use it for driving later or for discharging this power into the grid when household consumption is peaking.

That means EVs should be accessible to the grid operator, who manages power flows in a large area and balances the grid. The EV driver connects his vehicle to a platform and sets his State of Charge (SoC) limits, so his battery will neither be depleted to a level insufficient to get him to his destination, nor be charged to 100% if he doesn’t need the full capacity to cover his upcoming travels.

The driver also defines the time slot he won’t be needing his vehicle so the grid operator knows when the battery is at his disposal. This V2G system requires the car to have bidirectional charging capabilities – such as the Nissan Leaf. Most EVs today cannot discharge power back into the grid, but that does not mean they cannot be charged intelligently – so long as they can connect and communicate with the grid.

things better?

“AI is everywhere and its potential is mind-blowing. For the automotive industry, it is about faster and better product development and manufacturing. For our drivers it is a better customer experience and human-machine interface. Of course, ADAS and autonomous driving also come into play, as cars use AI to recognise pedestrians, cyclists, roadworks, etcetera. Finally, AI helps to better manage a shared fleet, such as Share Now’s.”

does Daimler use AI to 2 How improve manufacturing and thereby save costs?

“Quality control is essential for us and for decades we have been using cameras that verify compliance with our standards. It is always a very time-consuming process to calibrate them so they can work under all light conditions. If you have a new product with a new geometry, you have to readjust everything. Today, we use the same camera, the same system, and combine it with a deep-learning approach. The result is much less false positives – which stop the flow and cost time and money. Once you have the algorithm, you can apply it all over the world in all your plants.”

is a concrete applica3 What tion of AI in today’s cars?

“At Mercedes-Benz, MBUX is the perfect example of artificial intelligence put to practice. MBUX can analyse your habits – recurring appointments in your calendar, favourite radio stations, destinations you frequently go to, the phone calls you make – and suggest actions

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accordingly.

Another interesting aspect is natural speech: you can interact with your Mercedes using sentences that do not need to be structured like before.”

to assume 4 Isthatit reasonable the self-driving car will

materialise in the next few years?

“Nobody can forecast when exactly the fully automated car will hit the market. The next level will be level 3, which will come in the next few years. Concretely, cars will be perfect traffic pilots, which makes driving in congested highways less stressful. In the near future cars will be enabled to drive by themselves in dedicated areas. This means that provided the infrastructure is there, cars will for instance be able to park themselves after having dropped off their occupants. This is already being piloted at the Mercedes Museum in Stuttgart.”

can AI help fleet mana5 How gers improve procurement and fleet management?

It depends on the amount of data that is available. AI is about being able to process large amounts of data, learning structures and making predictions based on the analysis of these data. I could imagine AI working in a procurement process. The main application, however, is probably fleet occupation. The prediction algorithm helps maximise the utilisation rate by forecasting where and when you need vehicles. You could even integrate the supply chain of your partners. Just image what you could do by putting all data in one database. You could optimise logistics flows and save on transport, for instance.

FLEET EUROPE #111

do you see as the main 1 What areas in which AI can make

CONNECTED

HOW CARS BECOME A MARKETPLACE Benjamin Uyttebroeck

@uytteb

Imagine this: your car notices you’re running low on fuel. When you park at the office, it summons someone to fill up the fuel tank. No need for you to be there – your car sends its GPS location. This is only one example of how cars are becoming a marketplace.

Keywords: trust and transparency.

It doesn’t take much for a car to become a marketplace. Any kind of connectivity is enough, whether it’s the car that has the connectivity built-in or it’s enabled through a smartphone.

By the year 2020, a quarter of a billion vehicles will be connected. “I think 2020 is going to be a big year for the adoption,” said Lisa Joy Rosner, CMO, Otonomo.

Consent

FLEET EUROPE #111

“One of the most important requirements for all of these services,” said Ms Rosner, “is consent. The consumer has to grant consent to access their vehicle’s data.” That’s precisely what Otonomo does: it manages the distribution of the consent and, if needed for a particular service, the VIN number and the GPS data.

Consumers will only give their consent if they trust the service provider that asks for it. If a company is transparent about what data it uses and why it needs that data. Consumers’ minds will also be put at ease and more readily give consent if sharing data can easily be switched on or off and if users feels they’re in control of what happens to their data. “That also means using state-of-the-art encryption technologies for data transmission,” said Annett Fischer of Robert Bosch GmbH. “In our connectivity business, we focus on achieving maximum information security to protect people’s data against misuse.”

Monetisation Many of these services are already available today. Some other are still in the development phase. At the 2019

The car as a marketplace: in-car deliveries are already being tested by several manufacturers, like Volvo.

IAA Frankfurt Motor Show, Continental showcased its Data Monetisation Platform, a blockchain-based platform enabling OEMs and other parties to exchange and monetise mobility-related data.

An example helps make sense of this technical mumbo jumbo. As you drive through a city centre, your car scans parking places you drive by and sends information about empty places to a platform, which can then direct people that are looking for somewhere to park their car to the nearest empty spot. In return for your information, you get a small “finder’s fee” for each empty car space your car has scanned.

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Multi-tier ecosystem This parking scanning example is also an illustration of another important side to the car marketplace: many applications won’t work if every carmaker does his own thing in splendid isolation. Throw in some independent telematics companies and a couple of IT companies like Google, Amazon and Apple, and the fragmentation gets even worse.

Smart city applications in particular need to look at data from all the cars

p.12

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2010, they were met with much criticism. Faced with an unprecedentedly high level of resistance, Google decided to give up on Germany and Austria in 2011.

Culture defines how privacy is perceived and valued, but the perceived value of the services offered may also affect how readily people give up their privacy – even Germans and Austrians. Having your house photographed doesn’t offer a clear benefit, sending your location to a server so an app can guide you to your destination, does. Nevertheless, companies shouldn’t simply carbon copy their products from one market to the next without looking into cultural sensitivities.

Seamless transition Being a motorist is already quite different today from what it used to be, with new powertrain options, ownership formulas and new rules and regulations governing city access. The marketplace is another way driving will be transformed. “The consumer voice will dictate where it ultimately goes,” said Ms Rosner. “People expect a seamless transition of the experience they have in their home, on their wrist, at their ear and in their vehicle.”

WHAT MARKETPLACE?

FLEET EUROPE #111

Status Fuel fills up your car wherever you park it.

on the road, or at least from a statistically significant portion of those cars, and not just data from one particular carmaker or service provider. As all cars transmit their data in a different format, companies are needed to translate all data into the same language.

many cases where drivers get money for their data. “Personally, I don’t mind giving my data to Waze or Google Maps because their services mean I don’t have to write out directions,” she said. “The currency is data, the value are the services.”

Most likely, these services will be rolled out in a multi-tier distribution channel, said Ms Rosner. “The carmakers and the fleets provide the data, the value that we add is the services to aggregate data to cleanse it, normalise and harmonise it, to ensure data privacy, and to increase the value of the data.”

“In other cases,” she added, “you might get discounts or better services.”

Data is currency Ms Rosner doesn’t believe there will be

Google Street View News website Big Think recently published an article explaining why Germany is a blank spot on Google’s Street View, which has to do with Germans’ strong sense of privacy.

When Google cars started mapping the streets of Germany and Austria in

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These are some examples of how your car will be transformed into a marketplace. Some are already available, other will be soon: • Paying services like fuel, tolls etc. through the car.

• Package delivery in your boot.

• On-demand fuelling wherever your car is parked.

• On-demand car washing.

• Scheduling repairs and maintenance.

• Making hotel and restaurant reservations.

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HOW CONNECTED VEHICLES WILL CHANGE FLEET MANAGEMENT Jonathan Manning

A tsunami of data captured by on board vehicle sensors will give fleet operators new insights and tools to improve vehicle uptime and utilisation.

Remote repairs This type of repair could even be done remotely. Land Rover, for example, says that within the lifetime of its new Defender, the diagnostics system will be able to alert customers to faults and either prevent or resolve them automatically. The data connection effectively replaces a traditional toolkit.

With no designated drivers, connectivity is vital for carshare companies to identify vehicle faults such as a flat tyre.

And when vehicles do require physical attention, it’s no longer science fiction to imagine that they will automatically book themselves in for maintenance work and communicate to a garage the parts they will need. This will start a virtuous circle, enabling dealers to pre-order parts, which will minimise downtime in the workshop, and reduce the volume of parts that dealers have to stock.

FLEET EUROPE #111

Remote diagnostics Growing volumes of data from connected vehicles are giving fleet managers the opportunity to cut costs and boost efficiency. The automatic transmission of data generated by as many as 100 onboard sensors is enabling fleets to reduce downtime, improve route planning and boost the utilisation rates of shared vehicles.

the same fleet one car may be used for long motorway journeys and another for short, stop-start urban trips. These profiles would impose different wear on their brakes, yet current maintenance schedules call for both cars to be serviced at the same mileage, which may be too late for one and too early for the other.

Remote diagnostics will be vitally important for carshare fleets, where no individual driver has responsibility for a vehicle. Sensors will signal the state of the engine to fleet owners, alongside mundane but vital information such as tyre pressures, the level of fuel in the tank or power in the battery of an EV, and even the location of vehicles.

The technology also paves the way for remote, over-the-air software updates and repairs. Even today, dynamic fleets are moving beyond the servicing of vehicles at pre-determined time and mileage intervals, and instead using vehicle-specific data to identify when a vehicle actually requires attention.

No two company cars have the same working lives and it’s likely that within

By deploying artificial intelligence to analyse the mindboggling volumes of data generated by connected vehicles, operations departments will be able to detect in real time any parts that are at risk of failing. The pre-emptive repair or replacement of these parts will avoid roadside breakdowns that bring businesses to a juddering halt.

The accurate tracking of vehicles via telematics already allows fleet operators to plan routes that avoid congestion. A year-long study by Ford, following 160 vans in London, found that setting off two hours earlier could save one fleet 30 hours per week that is currently wasted in traffic.

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MAKING CONNECTIONS HOW CONNECTIVITY PAVES THE WAY FOR A WIDE VARIETY OF NEW FLEET-FOCUSED SERVICES

1 Keyless entry

Connectivity is a prerequisite for free floating carsharing services such as BMW’s and Daimler’s Share Now, as well as Zity in Madrid, Moov’in.Paris, Zipcar in London and WeShare in Berlin. These services rely on keyless entry to let drivers unlock vehicles via an app on their smartphones.

2 Real-time parking information

Connected vehicles will play an important role in smart parking. Onboard sensors and cameras will scan streets, feeding real-time information back to the cloud about occupied or empty roadside parking spaces. This data can then be fed back to other drivers to help them reduce the time wasted searching for a parking space. And it’s not just the vehicle that is connected. Appyparking has developed sensors for parking bays that not only identify whether they space is occupied or free, but which also will invoice drivers for parking by the minute, bringing much greater accuracy to bills.

3 Safer driving

Telematics is already helping safety-focused fleets to identify higher-risk drivers who accelerate sharply or brake harshly.

The same technology will enable carshare providers to spot drivers at a higher risk of crashing, and either increase their insurance premium for each journey or block them as customers.

4 Pay-per-use

The pinpoint tracking of vehicles facilitates pay-per-use services, such as vehicle hire, peer-to-peer carsharing and usage-based insurance policies. Customers will only be responsible for, and pay for vehicles while they are actually using them.

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5 Tyre sensors

Inflation pressure plays an important role in vehicle fuel consumption. Tyre pressure monitors will signal under- or overinflation not only to the driver, but also back to fleet operators, so action can be taken. This will be vital for carshare fleets that have no designated drivers.

6 Personal health monitoring

Tired employees? Stressed drivers? Sensors can detect distracted or drowsy drivers and signal an alert both to the driver and fleet operator. Smarter systems will be able to track driver heart rates and breathing patterns, and advise on any health risks.

FLEET EUROPE #111

7 Fuel payment

Mastercard has launched fuel pump technology that automatically reads a vehicle’s registration plate and captures its mileage as it drives onto the filling station forecourt. The driver then fills up with fuel and the system sends the invoice directly to the fleet. The system avoids errors in mileage capture and gives fleets a more accurate insight into the performance of their vehicles. p.16 15

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CASE STUDY CONNECTIVITY IN ACTION Leasing company Alphabet has been deploying connected car technology to revolutionise the way it manages the maintenance of its fleet. contacting drivers to arrange any required action or service for their vehicles as soon as a warning light appears.

Breakdown

Clive Buhagiar: “The preventative element is really the key for the future.”

One of the UK’s leading leasing companies is exploiting the benefits of connectivity to enhance its customer service to drivers and improve the maintenance of its fleet.

FLEET EUROPE #111

Alphabet UK launched Teleservices three years ago for drivers of BMWs and Minis, collecting information transmitted automatically from the cars.

This avoids the risk of company car drivers ignoring warning lights on their dashboards, which can prove costly and unsafe. It also gives Alphabet the tools to take a proactive approach,

“Failing to respond to a diesel particulate filter alert [not found on BMWs], for example, could lead to a breakdown, serious damage to an engine and an expensive repair in excess of €1,000,” said Clive Buhagiar, Head of Operational Services, Alphabet UK. “We want to keep drivers on the road for their convenience and avoid their companies having to pay for a chargeable repair,” he said.

The constant communication between cars and the operations department means Alphabet can prompt drivers to book their vehicles in for servicing on schedule. It also delivers updates on the status of vital components, such as brakes and oil, allowing Alphabet to schedule this work while a vehicle is in a workshop for another reason, thereby avoiding multiple trips to a dealer in quick succession. “The preventative element is really the key for the future, and we have been taking steps for a couple of years to get other manufacturers involved,” said Buhagiar.

“Things are progressing, but in a world of different manufacturer systems and

GDPR, it’s been a bit slower than we thought.” Data transmitted directly from the engine management system also enables Alphabet to advise its dealer network of the service work required before cars enter workshops.

Pre-order parts “We are now able to have a more intelligent booking facility,” said Buhagiar.

“Rather than booking a vehicle in for an unknown service requirement, we now know what that requirement is, so we can be much more specific in the booking.”

This means dealers can pre-order parts, which avoids potential downtime when a car is in a workshop and is a vital part of BMW’s Fast Lane service for corporate customers, which guarantees that vehicles will be back on the road within 90 minutes. The accurate transmission of odometer data also means Alphabet can help its customers avoid excess mileage end of contract charges, identifying underand over-mileage cars during the term of their lease rather than at the end.

“Customers can then reschedule their contracts or, in larger fleets, swap cars between high- and low-mileage drivers,” said Buhagiar.

Alphabet’s Teleservices receives maintenance alerts directly from a car.

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Bjoern Sack, Head of Connectivity and Digital Services at Mercedes-Benz Vans, said: “Our customers now have more services available to them, which will assist them in reducing their operating costs. Energy or fuel consumption can be reduced, the risk of an accident can be minimised and vehicle downtimes can also be avoided.”

Mercedes PRO now offers a menu of up to 21 digital services that give van fleets valuable, meaningful control of their vehicles.

The ‘Maintenance and Repair Management’ service, for example, can dramatically reduce downtime by notifying fleet operators of vehicles that are due a service, so businesses can efficiently schedule any work.

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Mercedes PRO’s ‘Drive Style Monitor’ gives fleet managers an important insight into the behaviour of drivers, analysing their acceleration, a key factor in fuel consumption. Armed with this data, fleets can identify and

17

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FLEET EUROPE #111

Forward-thinking fleet managers are transforming the efficiency of their vans by capturing and analysing unprecedented levels of on-board data. New Mercedes PRO connectivity services from Mercedes-Benz Vans give fleet decision makers instant access to detailed information on the condition of their vehicles, their performance, and the behaviour of drivers.

CONNECTED

WHO GETS TO MONETISE FLEET DATA? @Frank _J_Jacobs

If you’re ambivalent about Big Data, you’re not alone. It’s a security and privacy minefield (see elsewhere in this issue) – but it’s also a potential source of revenue. But for whom: OEMs, lease companies, corporate fleets, the drivers themselves?

Just a few years ago, road sensors, CCTV cameras and other static infrastructure were the main source of mobility data. But smartphones and connected cars are adding billions of data points into the mix, enhancing its predictive power. This can help alleviate congestion, prevent accidents – and make money.

Scratch the surface “We’re only just beginning to scratch the surface of this (data exploitation),” says Lisa Joy Rosner, the Chief Marketing Officer of Otonomo, a finalist in the 2018 Smart Mobility Start-up of the Year. According to consulting firm McKinsey & Co, the market for vehicle data could grow to $750 (€680) billion globally by 2030. No wonder everybody wants a piece of that pie. The question is: who gets a slice, and how big will it be?

“It’s really about putting data to good use,” says Ms Rosner. “If you start with How can I sell this stuff, that’s not the right directive.”

platform that will enable OEMs and other parties to exchange and monetise mobility data.

The initiative promises to break down so-called ‘data silos’, allowing data to be combined in order to generate new revenue streams – with blockchain-secured micropayments the ultimate enablers of data monetisation. “For fleets, data is not just valuable, it’s essential,” says Dirk Schlimm, Executive Vice-President and Advisory Board Member at Geotab, a leading global telematics provider. It’s equally essential to distinguish the various levels at which that data can be useful and valuable.

Four tiers •

•

FLEET EUROPE #111

In July 2019, Otonomo and Avis Budget Group announced they would be linking over 100,000 vehicles to Otonomo’s cloud-based marketplace of over 100 companies to turn data into revenue.

Blockchain-based It’s one of many initiatives in data monetisation. Earlier this year, for example, Continental launched a blockchain-based data monetisation

•

In a first value tier, data is crucial for fleet modernisation and innovation, as well as for connecting fleets to digital services.

A second value tier is in the aggregation of data and the insights that can be derived from it. These data-enabled insights range from predictive maintenance to safety analyses and minor accident detection. This is valuable for rental, leasing and carsharing fleets, and also for deciding how and when to switch to electric vehicles.

A third value tier is the public good: smart city traffic management (predicting congestion, selecting truck routes, managing

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parking, etc.) all depends on aggregating and analysing data.

This is why large traffic and city authorities will need data analytics to remain manageable.

•

A fourth and final value tier is about transforming transportation and inventing new mobility models: carsharing schemes, integrated multimodal transportation (e.g. rideshare, bus, metro, rail) all depend on data from multiple sources.

Value creation For all its value, fleet data should not be considered as just any other product or service to be bought and sold, warns Mr Schlimm: “The term ‘monetisation’ suggests data is traded like property. That’s not really a desirable business model. A good data business model is focused on value creation.”

In other words: data should be seen as an input for other value-added products and services, with the customer whose data is being used as the primary beneficiary. And it’s a complicated process, requiring exploration, preparation, cleansing, validation, privacy filtering and ‘productisation’ of the data – among other steps.

Everybody wants to monetise fleet data but it will be the company that creates the most value, that will win the trust of the customer, hence wins the monetisation race.

Digital gold rush All of which still leaves one big question unanswered: Who actually owns the data? Is it the manufacturer of the connected vehicle? The provider of the connected service? The leasing supplier? The client? Or the driver?“It’s no surprise that the ‘digital gold rush’ has led to many stakeholders claiming data ownership,” Mr Schlimm says.

“But the legal analysis of various property rights does not support this. The most thorough analysis we’ve seen – in the US and Europe – concludes that no one owns data ‘as such’ – or should own it, for that matter.” That of course doesn’t mean there aren’t any important legal protections for data. Privacy laws protect the dignity and privacy of drivers. The owners of the data-generating devices (in this case, the vehicles) can invoke protection against unauthorised access or

unwanted interference. And competition laws protect the free market in data generation.

Data interoperability “Fleet owners – and other car buyers – will want data accessibility and interoperability, to ensure competitive pricing and access to data-driven services,” Mr Schlimm says. “In particular, they need open ports to install brand-agnostic telematics and fleet management technology. In that respect, right-torepair legislation will play an important role, and must keep pace with the development of the digital economy.”

So, who will win the race to monetise fleet data? Simple: “The company that creates the most value, wins the trust of its customers, and enables the ecosystem at large. Data does not need to be hoarded or ring-fenced to create value - in fact the opposite is true: ‘open data’ has the greatest value potential, for both individual companies and societies as a whole.”

DATA VALUE CREATION: SOME EXAMPLES How can fleet data be used to create value? Here are some concrete examples.

• Predictive maintenance: get the

connected car serviced before it fails, saving time and money.

• Insight into traffic congestion:

helping traffic authorities to prevent slow traffic, and individual drivers to avoid it.

• Air quality insights: a mass of

readings will help to support sustainability strategies.

• Driver safety analysis: insight

into individual driver behaviour will help track and remedy dangerous habits.

• Real-world fuel data: insights will help manage fuel consumption, and develop recommendations for engine selection.

• EV suitability assessment:

analysis of vehicle usage (range, downtime, etc.) will help to assess whether electric vehicles are a viable alternative.

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FLEET EUROPE #111

We’re still in the discovery phase of data monetisation, says Mr Schlimm: “It’s a long-term affair. One thing is sure: overly eager and premature monetisation can produce unintended consequences and lead to a backlash.

Again, the better question is: How do I use data to better serve my customers and communities?”

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100% GDPR COMPLIANCE IS IMPOSSIBLE @ Frank _J_Jacobs

Fleets increasingly rely on telematics to improve efficiency and cut cost. How does that intersect with the security of their data and the privacy of their drivers? Blockchain and GDPR provide some of the answers – but questions remain.

FLEET EUROPE #111

It’s not your business, is it? Yes it is. Privacy matters, so protect it.

Data is the new oil: plentiful in raw form, and extremely valuable when processed. It’s no coincidence the four highest-valued global companies of 2019 – Amazon ($315.5bn), Apple ($309.5bn), Google ($309bn) and Microsoft ($251.2bn) – are all in the data mining business.

Corporate fleets sit on top of a mountain of data gold – telematics is not the only source of this data, but perhaps it is the source of the most sensitive

kind. As with anything of value, that creates the potential for misuse and theft. This is a source of concern for both the corporates and their drivers: the former want to protect their competitive advantage, the latter their personal privacy.

Privacy and security Data privacy and data security go hand in hand, experts say. In fact, most argue that all data generated by customers be kept secure, irrespective

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of whether it is from connected cars or from other sources. Data privacy depends on data security. However, information technology has become so complex that only a small elite of ICT experts can vouch for the safety of any data system. Fortunately, there’s blockchain – a method of storing information across a network of computers that ensures the data is both secure and virtually unchangeable. Blockchain’s best-known application so far is bitcoin and other

Use cases But more important than the right technology is the right process, says Paul Verheijen, VP Product Management at Webfleet Solutions, known as TomTom Telematics until its acquisition by Bridgestone.

“Depending on the different use cases in the field of connected cars, the data collected can be considered sensitive. For instance, information such as geolocation or driver behaviour should only be provided to the users it is intended for.”

Crafting the right digital identity – whether connected to the car or to the driver – is also a matter of tailoring what’s possible to what’s needed. “This is typically something that is set up by the fleet customer – in the terms of the GDPR, the ‘data controller’. For our solutions, we provide a four-layered architecture for user management and a lot of options to assure the driver’s privacy,” Mr Verheijen specifies. “It all depends on how the vehicle is used.

For example: just by one driver, or by multiple employees? A telematics solution should be able to handle these various situations. This way, the fleet manager can assure that multiple drivers can use the same vehicle, but that Driver A can only see their own driving behaviour reporting and not that of Driver B, for instance.”

Radical harmonisation Which brings us to the privacy aspect of fleet data – an aspect regulated since May 2018 by the advent of the European Union’s General Data Protection Regulation (GDPR).

On the one hand, GDPR is a radical harmonisation of the EU’s data privacy regulations: it is centred on the individual’s right to privacy, inaugurates uniform requirements for assessment and auditing of data usage, appoints a single EU-wide regulatory body, and fixes fines for infractions against GDPR that can amount to €20 million or 4% of a company’s turnover – whichever is more. On the other hand, if you’re a

serious company with privacy protocols already in place, GDPR hasn’t changed the processing of data all that much, says Simon Duerinckx, legal advisor on GDPR with the Belgian subsidiary of BDO, the global consulting firm. “Yes, companies now have to show and justify that they’re GDPR compliant. But to a large extent, the rules build on previously existing ones.

What makes it complex in case of the fleet business, is that it deals with various kinds of data, a lot of different parties – drivers, suppliers, etc. – and that it will have to integrate a GDPR compliant way of processing the privacy-sensitive data generated by their telematics system.”

Web of responsibilities BDO has had wide experience advising large fleet and lease companies on how to implement GDPR. “The first step is always to determine the roles as prescribed by the new regulation: who is ‘data controller’ – the party that decides what the data is used for – and who is ‘data processor’ – the party that manages the data on behalf of the data controller,” says Wim Verbelen, Senior Manager Risk Advisory Services at BDO Belgium.

GDPR establishes a web of responsibilities for all parties, in the first place towards the ‘data subjects’ (in this case the fleet drivers), who must be

informed of the extent and purpose of data gathering and processing.

“We’re now moving towards a system of ‘privacy by design’, and ‘privacy by default’. In the long run, GDPR will become an automatism: companies that don’t operate according to the rules, will end up being uncompetitive in the marketplace,” Mr Duerinckx predicts. “We should also realise that nobody will ever be 100% GDPR compliant. It’s however a goal to strive for and GDPR should be considered as an ongoing approach to business.”

GDPR may have levelled the playing field in privacy regulations, but much still has to become clear. “It’s a very general framework, and it remains to be seen how it will be implemented. We’ll have to see how the national courts deal with upcoming GDPR cases,” says Mr Verbelen. While the European Data Protection Board is tasked with maintaining regulatory uniformity across the EU, some discrepancies are already emerging. “There’ve been a very limited number of minor fines, but in our neighbouring countries such as France, both the number of fines and of court cases is much, much higher.” It remains to be seen whether the divergence in enforcement across EU member states will lead to a difference in practice when it comes to the protection of data privacy.

DATA PRIVACY: BEST PRACTICES What’s the best way for fleet managers to maintain the privacy of the data generated by their drivers (and their vehicles)? “The joint European Data Protection Authorities already provide good guidance,” says Mr Verheijen.

“But the basic principles can also be covered by a best practice approach to the protection of personal data. We typically advise the following:”

1 Map all data flows. Useful for risk assessment.

2 Scrutinise the supply chain. Make sure all fleet suppliers process sensitive data securely.

3 Ensure appropriate contracts are in place. So both parties

understand their liabilities and responsibilities.

4 Establish a process for data requests in case a ‘data subject’ requests access to personal data.

5 Plan for data breaches. Risk can be reduced, but not eliminated.

Make sure you have a process to notify the relevant authority.

6 Make sure employees understand their roles. Data security

and privacy is not just a job for data controllers, but also for the data subjects themselves. Establish effective protocols.

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FLEET EUROPE #111

cryptocurrencies, but its potential applications range far and wide, including the creation of hyper-secure data storage lockers for securing and protecting the Big Data generated by fleet telematics.

CONNECTED

HARMONISING FLEET DATA THROUGH CONNECTIVITY Alison Pittaway

Making sense of fleet data and using it to provide business advantage and value for customers is a new ball game that demands harmonisation of data flow.

connected. Do you have multiple databases of customer, driver and vehicle data that are not integrated? Multiple, diverse systems will make journey analytics data, for example, difficult to compile. Customer segmentation will take too long and proactive vehicle maintenance will be impossible.

Data acquisition

The ROI of connectivity is not determined by which and how much data is collected, but by how you put data intelligence to practice.

FLEET EUROPE #111

Old business models are being disrupted and fleet managers are finding themselves having to adapt quickly to unprecedented change. That’s not easy but it has to be done as competition is coming from new sources.

So, it’s about being responsive. But that’s only one part, says Christian Umbach, Co-founder and CEO of Xapix: “What it boils down to, whether you’re producing a vehicle or delivering great mobility services, is speed. We all want to accelerate things. Everyone’s impatient, no one wants to waste time, which is why Xapix is helping to build that acceleration toolkit.”

But it’s not about throwing away the old in favour of the new. In a white paper published by ARM Treasure Data: Harnessing Automotive Data Analytics, Scott Monty, Brain+Trust Partners’ CEO and Co-Managing Partner is quoted saying:

Understanding what you have

“It’s not about swapping out one thing for another, now it’s about having to be in different markets and channels all at once, while maintaining a consistent brand experience.”

The first aspect to harmonising data is to understand what you have already, where it’s come from (in terms of touchpoints – sales, service, loyalty apps, the vehicle, social media), where it’s stored and if it’s clean and

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Now that you know what you have, you can set up your data capturing systems so that you know what your customers, vehicles and drivers are doing in real-time. Managing shared services requires a new level of data sophistication. Carsharing schemes and short-term rental mean that each vehicle has many different customers.

This requires carmakers and mobility service providers to acquire and manage complex data sets in order to understand customers and manage liability issues.

Effective use of fleet data Increase productivity by 10

- 15%

Cut fuel expenses by 20

- 25%

Boost vehicle utilisation by 15

- 20%

Data Unification In order to create data unification, i.e. harmonisation, the goal is to have a single profile for each customer, vehicle, driver and any other asset and for this to be centralised and shared across every department – sales, marketing, service etc. This then informs every interaction. A second benefit of data unification is how it enables fleet businesses to gain valuable insights that enable them to benefit from new technologies. Computerisation is already changing the way in which cars are serviced and fleet managers need to understand the implications of this.

Connected cars are also the precursor to the commercialisation of fully autonomous vehicles and the data from sensors within them will also help mobilise the smart cities of the future.

Data insight Understand what you need to measure. This is how fleet managers can play their role in best serving the business’ goals and bottom line profits.

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“You can connect your vehicle fleet for less than €10 per month per vehicle.”

Data mining opportunities More data mining opportunities exist now than ever before and this is both a blessing and curse. Multiple sources of data further complicate an already complex problem. On the other hand, fleet managers can tap into those sources to gather insights that enable them to adapt to changing market conditions and opportunities in an informed manner. This also helps them compete successfully. In order to extract intelligence from fleet data, it’s crucial to have a platform and systems in place that support this. Mark Binks, founder and group managing director of fleet and mobility management

software provider Bynx says that there’s no such thing as standard reporting anymore.

“Now you have to have that flexibility.

Any platform that doesn’t allow for this will put the brakes on any business rather than drive it forward. When we implement our solution, one of the key aspects is the reporting or business intelligence (as we like to refer to it). We’ve spent a lot of time developing our reporting layer, which gives customers a lot of flexibility in terms of how they massage the information in such a way that is meaningful for their business.”

So, in terms of harmonising data, the key is to start now, otherwise according to Xapix’ Umbach, fleets are just creating more legacy data, which is not business-friendly – certainly not for today’s fleets.

From From generating data generating data toto driving business driving business performance performance

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003 - Express 003 - Express 09:53, Feroe Islands 52, 1317 HR Amsterdam, NL

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006 – Transport 09:53, AP-7,– Km 398 08088 Barcelona, ES 006 Transport

TomTom Telematics is now TomTom Telematics is now Webfleet Solutions Webfleet Solutions

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Since our launch 20 years ago, we’ve grown to become Since our launch 20 years ago, we’ve grown to become a global leader in telematics, helping over 50,000 a global leader in telematics, helping over 50,000 businesses manage vehicles and maximise productivity. businesses manage vehicles and maximise productivity.

Having recently been acquired by Bridgestone, we now Having recently been acquired by Bridgestone, we now change our name from TomTom Telematics to Webfleet change our name from TomTom Telematics to Webfleet Solutions. Our goal remains the same: to innovate fleet Solutions. Our goal remains the same: to innovate fleet management and build the future of mobility solutions. management and build the future of mobility solutions.

Let’s drive business. Further.

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CONNECTED

PREMIUM TODAY, MAINSTREAM TOMORROW @DieterQuartier

Premium does not only mean state-of-the-art design and top-notch materials, it’s also about immaterial aspects like services and digital features to woo the discerning customer. These four connected innovations are ‘wow’ today and could become mundane tomorrow. ?

MERCEDES EQC: THEFT PROTECTION WITH PARKING DAMAGE WARNING

BMW 7 SERIES: REMOTE CONTROLLED PARKING

Most of us have already returned to their car in the car park to find it damaged. No witnesses, no note behind the windscreen wiper: even though it’s not your fault, you are the one that has to pay for the repair and the culprit gets away. Not with the Mercedes EQC: it can send out a notification to its owner’s smartphone when somebody has damaged it and/or tries to steel it. This enhanced notification service comes with a yearly subscription.

This feature enables the driver to trigger the process of entering and exiting parking spaces from outside the car using the BMW Display Key. The BMW 7 Series can be manoeuvred forwards into enclosed parking spaces or garages and reversed out of them again with the greatest of ease. During these manoeuvres, the car’s acceleration and braking is monitored by the sensors of the driver assistance systems and supervised by the driver.

POLESTAR 2: ANDROID INFOTAINMENT OS

FLEET EUROPE #111

JAGUAR LAND ROVER: RESPONDING TO YOUR MOOD

The Polestar 2 is one of the first cars in the world to embed an infotainment system powered by Android. The Android backbone provides a solid and adaptable digital environment for apps and vehicle functions to coexist, and brings embedded Google services to a car for the first time – including Google Assistant, Google Maps with support for electric vehicles and the Google Play Store. Polestar invites Android developers to imagine their own concepts, incidentally, with the goal of unlocking opportunities that improve in-car infotainment for the entire automotive industry.

Jaguar Land Rover is researching new artificial intelligence (AI) technology to understand our state of mind while driving – and adjust cabin settings to improve driver wellbeing.

The technology uses a driver-facing camera and biometric sensing to monitor and evaluate the driver’s mood and adapt a host of cabin features, including the heating, ventilation and air conditioning system, media and ambient lighting. The settings will be altered in response to the driver’s facial expressions to help tackle stress.

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LAST MILE

7 SOLUTIONS FOR YOUR LAST-MILE DELIVERIES Benjamin Uyttebroeck

@uytteb

Fancy cutting costs by 25 to 55% for your parcel deliveries?

These solutions can help you achieve that, while reducing tailpipe emissions at the same time.

Renault envisions a connected future with self-driving electric vans that can follow each other in a platoon or drive independently.

Urban consolidation centres, night deliveries, EVs, load-pooling, parcel lockers and AGV lockers – those are the solutions that can reduce tailpipe emissions by up to 30% and cut costs per parcel by 25 to 55%, according to a survey by McKinsey (An integrated perspective on the future of mobility, part 2: Transforming urban delivery). We added cargo bikes to this list, a relatively low-tech solution that’s already being put to good use in many places.

FLEET EUROPE #111

1

Urban consolidation centres

Typically, urban consolidation centres are located on the outskirts of cities, where deliveries are brought, sorted and dispatched into fewer shipments, because loads and vehicle sizes can be optimised. Many urban consolidation centres rely on subsidies because they are unable to reach financial sustainability. Nevertheless, in cities with heavy congestion and with strict rules limiting what kind of

vehicles are allowed on its roads, they could have a brighter future.

2 Night deliveries

Night deliveries shift traffic to off-peak hours, reducing congestion during the day. McKinsey estimates they could achieve cost cuts of up to 50%, but noise concerns can limit their potential. Once EVs are more wildly used, they should become quieter.

3 EVs

They have been a long time coming but electric LCVs are finally entering the market. A number of OEMs have even unveiled refrigerated variants.

Nevertheless, range and charging times are still an issue for many use cases and incentives for wider adoption should be considered.

4 Load pooling

Load pooling requires an online system that matches commercial vehicles with spare capacity with

28

customers who need delivery space.

The goal is to maximise vehicle load utilisation and reduce the number of vehicles that need to be on the roads.

Think of it as a virtual urban consolidation centre. Load pooling can be useful for both B2B and B2C deliveries.

Shippers benefit from using their fleet more intensively and from increasing their drop density. At full potential, McKinsey believes load pooling in urban areas can reduce delivery costs by up to 25%.

5 Parcel lockers

Parcel lockers can often be found in or near railway stations, supermarkets, office buildings, shopping centres or other locations with heavy foot traffic.When placing their order, customers can select which location they prefer for their delivery. They benefit from 24/7 access and shippers benefit from fewer delivery locations and fewer failed delivery attempts.

6 Autonomous ground vehicles

Autonomous ground vehicle lockers (AGVs) are what their name suggests: self-driving parcel lockers.

They can be used to make door-todoor deliveries or they can park in a central location where customers can collect their parcels. There’s a caveat, though: they don’t exist yet. Renault’s EZ-Pro concept gives a sneak peek at what’s to come. In Renault’s vision,

self-driving electric vehicles can connect to each other and form a train of robo-pods that follow each other or they can move independently. If you dictate your policy by what is possible today, you can go for smaller autonomous parcel delivery vehicles that carry orders for one customer. Such solutions are already being tested in multiple places across the world.

7 Cargo bikes

In their essence, cargo bikes have been around for more than 100 years.

Modern, electrically assisted variants make them more useful than ever before, particularly in urban areas with strict emissions regulations and with access restrictions. They can be useful for parcel delivery companies but also for service technicians working in city centres.

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The Connected Fleets Conference is made possible with the support of Athlon, Geotab and Mercedes-Benz Vans.

Track and trace

Visualise your vehicles in real time to react quickly to live incidents, last minute customer requests or locate stolen vehicles

Maintenance Manage the maintenance of your vehicles, with real-time odometer and servicing information, as well as fault alerts (oil warning, ABS etc.)

Driving behaviour and safety

Detailed and customised reports

Encourage your fleet to drive safely and reduce fuel consumption

Easily analyse your activity (fuel consumption, mileage, journeys and more)

Job management

SmarterDriver app

Track and optimise your live schedules (planned vs. actual, end customer ETA notification etc.) by leveraging real-time vehicle location data

Engage drivers and introduce streamlined, digital processes around vehicle checks, mileage expense claims, driver behaviour and job dispatching

Find out more at masternaut.com/fleet-europe 29

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The second edition of the Connected Fleets Conference, on 28 and 29 January 2019 in Brussels, focuses on the challenges parcel delivery companies face in terms of fleet management optimisation, last-mile deliveries and telematics. The Connected Fleets Conference will host a wide variety of experts from vehicle manufacturers and finance specialists, to tech companies and connectivity providers, making it the ideal event where commercial fleets and all fleets that have to deal with last-mile challenges and connectivity, will meet, share experiences and learn from each other.

NEW ENERGIES

PLUG BY EXAMPLE WITH THESE PREMIUM SUVS @ DieterQuartier

More affordable EVs were the main theme at this year’s Frankfurt Motor Show. Still, there were a handful of premium plug-in hybrid newcomers that did not escape the junior, middle and senior management’s attention.

LAND ROVER DEFENDER. It took Land Rover much more time than it had anticipated to replace what was essentially the icon of the brand. The Defender from 1948 finally begets an heir to the throne – one that magnificently bridges the gap between heritage and hi-tech. It will be available as a five door (“110”) or a three door (“90”). A third model will also be added to the line-up, the 130 with a longer wheelbase. For now, only diesel and petrol engines are on offer, but a plug-in hybrid powertrain is to follow. Yes, even the most iconic of icons must evolve.

SEAT TARRACO PHEV. Seat’s interpretation of what Volkswagen calls Tiguan Allspace and Skoda named Kodiaq borrows the Passat GTE’s powertrain to become a plug-in hybrid. A powerful one at that: it mates a 1.4-litre petrol engine (110kW) to an 85kW electric motor. The 13kWh battery pack offers an electric range of more than 50km and reduced emissions of under 50g/km. In case you hadn’t noticed: indeed, Seat is to become more premium than it used to be and in FR livery this Tarraco indeed looks and feels the part.

MERCEDES GLE 350 DE 4MATIC. Those who thought diesel hybrids were a thing of the past had better reconsider. They still make sense in large SUVs that combine long distance travelling with regular dips into city traffic – like the brand-new Mercedes GLE. Interestingly, the battery holds a class-leadingly large battery pack of 31kWh, which can take you 100km from your starting point on a single charge. As opposed to its competitors, the GLE can also be charged on a DC fast charger, reducing charging time to a mere 30 minutes

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MINI COOPER SE COUNTRYMAN ALL4.

Yes, another manufacturer that vies for the Most Complicated Car Name Award. Mini promises an electric range extended by 30% for this new Countryman thanks to an increased battery, which now holds 10kWh and lowers the combined CO2 emissions to 43 to 47g/km (NEDC 2.0), depending on the equipment. Thermic power comes from a 1.5 three-cylinder petrol engine that drives the front wheels, with the rear wheels being activated upon demand.

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Apply data to GO Electric with confidence

To learn more visit: www.geotab.com © 2019 Geotab Inc. All Rights Reserved.

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Geotab @GEOTAB MyGeotab

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www.geotab.com/ev

NEW ENERGIES

ELECTRIFIED PREMIUM NOVELTIES FOR 2020 Stijn Blanckaert & Dieter Quartier

With massive fines hanging like Damocles’ Sword above their heads, premium OEMs have no other choice than to massively invest in electrification in order to reach the CO2 objectives.

Next year, their showrooms will fill up with a host of new EVs and plug-in hybrid models.

The CAFE 2020-objective, mandating OEMs selling cars in the European Union to achieve an average fleet CO2 emission rating of just 95 grams for all new cars sold, forces them to speed up the pace of electrification. That’s especially the case for premium brands,

as they sell bigger, heavier cars than the volume brands. Only by shifting significantly more low-emission vehicles such as PHEVs and BEVs will manufacturers be able to avoid the massive fines that threaten them when the objective is not met. Although

not many details are known at this point, here are the premium electrified brands and models that have already been announced for next year. All stated numbers are preliminary and unconfirmed.

1 BMW iX3

BMW was a true e-pioneer with the i3, but in the meantime its rivals from Stuttgart and Ingolstadt have caught up, offering high-tech models in a segment that is about to boom: electric crossovers. Customers looking for a Bavarian alternative to the Mercedes EQC and Audi e-tron will have to wait just a bit longer: in 2020, BMW will finally launch the iX3, indeed, an electric version of the successful X3. It will deliver 200 kW (272 bhp) to the four wheels and promises a range of 400 kilometres with its 75kWh battery, which can be charged to 80% in less than 30 minutes at a 150kW DC fast charger.

2 Audi Q4 e-tron

After the e-tron tout court, the Q4 e-tron is the second electric SUV by Audi.

As its names suggests, it slots just below the Q5 and is supposed to feature an 83kWh battery which should be good for some 450 kilometres of range. The internal charger can handle 11kW allowing the battery to be fully charged in some 9 hours at a wall box. Through its CCS socket, fast charging will be possible at a power of up to 125kW. The e-motor(s) will deliver 225kW and the car will come with four-wheel drive.

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3 Maserati

Next year will be busy for Maserati, because the Italian premium brand promises no less than four (re)new(ed) models. The Ghibli gets a facelift, and so do the Quattroporte and the Levante. Alongside those legacy models, a completely new sportscar will be launched. All of them will feature plug-in hybrid technology. Fully electric Maserati’s, however, are still a long way from materializing.

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4 Volvo XC40 Recharge

Plug-in hybrid specialist Volvo also goes electric and does so with the compact XC40 crossover, the EV model of which is called Recharge. It shares its underpinnings with the Polestar 2, including a 78kWh battery and 408 electric horses spread over two axles. Volvo claims a WLTP range of more than 400 kilometres and a charging time of just 7,5 hours thanks to the 11kW on-board charger. And yes, it can take DC at 150kW. Don’t go rushing to the showroom just yet: deliveries won’t start until the second half of 2020.

5 Polestar 2

With the Polestar 2, the first fully electric Polestar, succeeding the exclusive Polestar 1 which was a plug-in hybrid, Volvo Car Corporation’s exclusive sub-marque aims at the Tesla Model 3. It featured 300kW (408hp) of electric power delivered to all four wheels. The 78kWh battery promises 500 theoretical kilometres of range – some 20% more than the heavier and taller Volvo XC40 Recharge, which was so kind to share its platform with Polestar. In ‘exchange’, the latter lets the former borrow its Android OS for the infotainment system..

6 Tesla Model Y

Tesla’s next novelty will be the Y, an electric SUV offering seating forup to seven people. Technically, the Y is based upon the successful 3. The launch of the Y is to be expected at the very end of 2020 in the US and somewhere in 2021 in Europe. The Y will be offered as a two-wheel drive ‘Long Range’ version with an estimated WLTP range of 540 kilometres as well as a Dual Motor model featuring four-wheel drive. Competitors are the Audi Q4 e-tron and the BMW iX3..

7 Mercedes-Benz EQA

At Mercedes, the electric range and sub-brand is named “EQ”, with the third letter in the model name indicating the range to which the EV belongs. The EQA concept was first shown in Frankfurt in 2017 and is now ready to be marketed featuring a 60kW battery and 350 kilometres of range. The EQA will also be available with other battery capacities and engines, just like the VW ID3. The first EQA will deliver 200 kW (272 bhp) and be an all-wheel drive model. The car is to be capable of fast charging at 100 kW DC. That would make for 33 minutes of charging time to add 280 kilometres.

8 Range Rover Evoque PHEV

Range Rover will not go fully electric as of yet but is working on a plug-in hybrid version of its Evoque SUV that will be powered by a 200 bhp three-cylinder petrol engine mated to a 108bhp electric motor. The British brand hopes that version will account for one third of all Evoque sales in the near future. Next to the Evoque, the Land Rover Discovery Sport and the all-new Defender will also come as a PHEV.

Contrary to its competitors, Lexus does not opt for plug-in hybridisation in order to comply with the 95-gram CO2 objective. It simply doesn’t have to: nearly all its models are “self-charging” hybrids and the brand therefore has a very flattering average fleet emission.

That won’t suffice beyond 2021 though, when the EU sharpens the target. By 2025, every Lexus model will be available as a dedicated electrified model or have an electrified option, meaning that the brand will opt for a combination of full hybrid, plug-in hybrid, battery electric and hydrogen fuel cell vehicles.

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LEXUS: FULL HYBRID INSTEAD OF PLUG-INS

SAFETY

SAY SAFETY, SAY PREMIUM @ DieterQuartier

Premium carmakers have a reputation of asking money for every single feature they can, including in the safety department. Be that as it may, it is also the premium OEMs that invest the most money in innovation and in the end contribute to more safety for all. vertical impact to reduce the chance of serious injury in the event of a hard landing.

DS Night Vision: see in the dark

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The immediately recognisable coffee cup in the instrument cluster tells you it’s time for a break.

Carmakers often claim that safety should not be optional. Yet they consider it logical that not all elements can be standard, even the premium brands, “to keep the car affordable.”

If you want maximum protection, you have to pay for it. Autonomous Emergency Braking is now standard on all premium models. Not necessarily because the brands want you to avoid accidents at low speed – that’s bad for their parts business after all. It is more likely due to the fact that Euro NCAP no longer awards five stars if the car is not equipped with AEB. A premium car without five stars is of course unthinkable.

As technology evolves, so do Euro NCAP’s rating criteria. That means that carmakers are forced to keep on developing crash-avoidance technology. It is

also a matter of prestige and wooing the customer, evidently. These novelty features could become commonplace in the next five years – thanks to the premium carmakers that pave the way.

Volvo XC90 Run-off road Mitigation: keeps you on the road The XC90 is able to venture off-road, but in some cases it is not its driver’s intention to do so. If you are about to leave the road unintentionally – something that can lead to a severe collision – this Volvo can correct your course.

At speeds between 65-140km/h, a feature called Run-off road Mitigation can detect your unintentional trailblazing and then use steering and, if necessary, brake support to guide the car back onto the right path. If the car does leave the road, an energy-absorbing structure in the front seat softens the

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Humans don’t see well at night. That is why DS Automobiles has integrated an infrared camera in the nose of the DS7 Crossback, which can detect warm-blooded beings at speeds of up to 160km/h. In Night Vision mode, the infrared camera’s images are projected onto the driver display. To help the driver discern any living ‘obstacles’, the system indicates the latter with a yellow rectangle. The scope for detection by the camera ranges between 15 meters (for pedestrians) and 150 meters, depending on visibility.

Animals less than 0.5m high are not detected, unfortunately; so you will have to keep an extra eye out for cats and smaller dogs.

Mercedes-Benz Attention Assist: time for a break In Germany, over-tiredness is the cause of around 0.7% of all accidents with personal injuries, and of around 1.2% of all accidents with fatalities, according to 2018 figures from the German Statistical Office. Already ten years ago, safety advocate Mercedes-Benz invented Attention Assist: a system can recognise typical signs of fatigue and prompt drivers to take a break.

Indeed, the intuitively recognisable symbol for this is a stylised coffee cup in the instrument cluster. The system’s sensors observe the driver’s behaviour and can recognise – especially on the basis of steering wheel movements – if he is starting to lose focus.

Lexus Adaptive High-beam System: nec plus ultra

Tesla Autopilot with full self-driving capability: a big promise Every Tesla comes with Autopilot as standard – which in itself is nothing but commendable. It is basically an advanced adaptive cruise control which can steer, accelerate and brake automatically for other vehicles and pedestrians within its lane. For a big 5 grand more, Tesla will equip your car with hard and software enabling automatic driving from highway on-ramp to off-ramp including interchanges and

Lexus’ latest LED technology enables the car to detect pedestrians as far as 56 meters away. overtaking slower cars, plus automatic lane changes while driving on the motorway. Tesla also sells a promise: that later this year, your car will recognise and respond to traffic lights and stop signs, allowing it to drive automatically in city streets.

Porsche InnoDrive: the ideal co-pilot The ideal codriver is there whenever you need them - authoritative, but not bossy, states Porsche. With InnoDrive, its engineers have created an assistance system with capabilities that extend far beyond those of other electronic aids. InnoDrive controls the

speed and transmission settings and can plan up to three kilometres ahead.

Leveraging data from the navigation system, the system not only knows all about the route and speed limits, but also knows the exact topography.

Using this information, it continuously selects the optimal gear and initiates acceleration and braking. It can even tackle roundabouts. In its current stage it is a comfort assistant – the driver remains in control all the time – but even a driver’s car like this will eventually adopt self-driving skills – to be used at its owner’s discretion.

Leveraging data from the navigation system, Porsche InnoDrive continuously selects the optimal gear and initiates acceleration and braking.

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LED lights offer better illumination than standard lights, but they often dazzle oncoming traffic. That is one of the reasons why Lexus invented a system that adjusts the light distribution rather than switching the headlights to low beam. The so-called BladeScan technology also gives the driver a wider field of illumination that conventional LED array-type headlights. In simple terms, light from the LEDs in the headlamp unit is projected onto a blade-shaped mirror that rotates at 6,000rpm. With conventional LEDs, pedestrians and road signs can be detected up to 32 meters ahead; with BladeScan this distance is extended to 56 meters.

MAAS

THE PREMIUM MOBILITY CHALLENGER Jonathan Manning

Luxury carmakers are developing new products and lifestyle experiences to compete in a market where private car ownership no longer exists.

Premium carmakers are driving on thin ice. Having ferociously protected their brands for years, the mobility revolution threatens to undermine their control. In a world where ridehailing and carsharing challenge the very concept of car ownership, will a car’s brand continue to matter? Put bluntly, if people no longer park a car on their drive at home or outside their office, does the badge on the bonnet really matter?

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It is clear from the development of multiple new products and services that premium marques are progressively looking to extend their brands beyond their cars’ driving performance and into the lifestyle elements of the ownership experience. While traditional battlegrounds of engine, ride and handling remain vitally important, premium manufacturers are also turning the spotlight on new in-car services, innovative finance options and smart time-saving solutions to meet changing customer expectations.

Driving may be losing its lustre on increasingly congested roads, but this does not mean that time in a car cannot be a luxury experience.

Witness the development of concierge services that give drivers immediate access to a range of information and assistance, not all related to driving.

These voice-activated services can locate garages, cafés and even vacant parking spaces, but they can also send flowers and book theatre tickets,

The Out is an on-demand car rental service that delivers JLR models to customers.

acting as virtual personal assistants to the person behind the wheel.

some of the nuisance elements of car ownership.

With time increasingly valued as a priceless commodity, manufacturers are working to ensure that no minutes are wasted on the road. Company car drivers behind the wheel of the new BMW X6 can use BMW’s Intelligent Personal Assistant to integrate their cars with Microsoft Office 365, turning the vehicles into mobile offices capable of hosting Skype for Business teleconferences.

Audi and Porsche, for instance, are trialling an autonomous parking function at a multi-storey car park near Hamburg Airport. Their goal is clear - by the start of the 2020s, drivers will be able to leave their cars at the entrance to the car park and the cars will autonomously find a parking space and park. The system saves drivers time and avoids the risk of scratching their cars, as they rush for their flights.

Smart parking services

At the launch of the trial, Johann Jungwirth, Chief Digital Officer of the Volkswagen Group, said: “With new mobility solutions we want to give

This focus on convenience is also set to see premium brands develop autonomous driving functions that remove

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most appropriate form of travel and even the most appropriate model of car for each journey. Anticipating this development, premium carmakers are trialling subscription services that promise the flexibility of the sharing economy, rather than the restrictions of fixed one, two or three-year contracts.

Access by BMW, Lexus One, MercedesBenz Collection and Porsche Passport all offer variations on the same theme, allowing drivers to switch or ‘flip’ between cars at their convenience to meet their lifestyle needs. The frequency of the flips varies from daily to weekly to monthly, but the marketing vision is consistent - a saloon for Monday to Friday, a sportscar at the weekend and an SUV in winter, with all costs, including finance, maintenance and insurance wrapped up in a single monthly subscription fee. The manufacturers are still working on the logistics and costs of these services, as well as assessing consumer demand, before rolling them out beyond their USA trials. But the subscriptions do provide a vision of how premium brands can extend their luxury reputations into the mobility arena; cars are collected and delivered polished and shining with a full tank of fuel - Lexus will even arrange for its cars to be washed on a weekly basis to add gloss to its offer.

InMotion, the Jaguar Land Rover subsidiary tasked with investing in new mobility start-ups, has launched The Out, an on-demand car rental service that offers JLR models to a London audience who want a premium alternative to both vehicle ownership and standard car hire. The Out delivers on-demand, luxury vehicles directly to customers, with all-inclusive hire fees covering comprehensive insurance, unlimited mileage and even London’s congestion charge.

And this focus on lifestyle extends beyond the driver. In the US, InMotion invested in Sheprd, an on-demand school ‘bus’ that used a fleet of Land Rover Discoveries to take children to school. The service included real-time tracking and parent communication to ease the anxieties of worried parents, although it appears to have closed its doors a year after launch.

The range and breadth of these services reveals how premium brands are no longer solely focused on engineering excellence but are now exploring how to extend their brand values into other forms of travel and lifestyle.

Premium rental services If the goal of subscriptions is to lock customers into long-term relationships, there is focus, too, on services with shorter-term commitments. people more time and quality of life by reducing the time spent and stress in road traffic. People currently spend around 30% of their driving time in urban areas looking for a parking space. Autonomous parking like we are testing here at Hamburg Airport is an important step on the way to autonomous driving – as an integrated full-service concept via an app. We are putting a consistent focus on people and their needs.”

Audi’s autonomous parking project at Hamburg Airport includes a laundry service while drivers are away.

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Flexible car subscriptions But the bigger question remains how premium brands integrate into a mobility ecosystem where individual car ownership is overtaken by access to usership, where people choose the

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FINANCIAL MODELS

ENSURING VALUE THAT EXCEEDS CUSTOMER DEMANDS @StevenSchoefs

On 1 July Marco Lessacher took up the position of CEO at Alphabet International. He started his career at the BMW Group in 2007 and held CEO functions at BMW Financial Services and Alphabet Germany.Time for a 3-question interview. will change at Alphabet 1 What with you as CEO?

“We remain on the path to deliver great customer solutions in an international environment by recognising the fast-paced and ever-changing needs of organisations and individuals. As such, we continue to be agile and flexibile in addressing the requirements of the markets that we serve.”

“The key will be to do this in a sustainable way, not just by considering the sustainability agendas of the companies we work with but through ensuring that the solutions we deliver are in themselves sustainable, that they have the durability and relevance to enable customers to deliver on their own strategic goals.”

“In essence, my goal is to take the great business we have and make it stronger, even more customer-centric, guaranteeing added value for our customers that doesn’t just meet, but exceeds their demands.”

do you see the business 2 How activities of Alphabet evol-

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ving in the context of a more user- and trip-centric mobility?

“Alphabet’s various mobility solutions, accessible through our comprehensive mobility app, AlphaGuide, already deliver user- and trip-centric mobility. With the app, users can access AlphaCity, our well-established and proven corporate carsharing solution that enables business or private mobility from as little as one minute of usage.

They can also use AlphaFlex, our mobility budget solution, or AlphaRent, our rental solution starting from a day up to 24 months or even access key data about their leased vehicle.”

Marco Lessacher, CEO of Alphabet International, is convinced that the convergence between short- and long-term rental is inevitable and irreversible.

“These are the sustainable solutions that we are already offering. There are a plethora of new apps and start-ups entering the mobility marketplace, many of which have to yet to prove their solutions. Our role is to constantly develop our product offering so that it remains innovative, flexible and relevant with a level of quality that can be trusted.”

you expect convergence of 3 Do Fleet and Travel, of B2B and B2C, and of long-term and shortterm rental in the future?

“I remember five years ago, during a strategy workshop, where we predicted the convergence of Fleet and Travel, and to be honest this is yet to happen. It is in some ways an obvious and logical development and we have already seen cases within our customers and amongst mobility

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managers in organisations. However, from an industry perspective, we are yet to really see it take off. On the other hand, B2B – B2E – B2C: there we have definitely seen a switch with personal tax changes and regulations influencing the take up of car vs cash together with the increasing popularity of private lease now being exploited by traditional corporate leasing providers, in addition to OEM captives.”

“Short- and long-term rental are also merging and this is something that we already offer, with our AlphaRent solution. In the future there will be no more differentiation between the two and this will fall under the umbrella of rent as a whole. You could also categorise the trend towards subscription models which, in essence are also simply another interation of rental.”

Electric meets aesthetic.

The new KONA Hybrid and KONA Electric.

#NextAwaits The distinctive Kona has progressed even further: meet the future of efficiency and electric driving. Experience the highly-efficient and engaging drive of the Kona Hybrid, or go fullelectric and enjoy an exceptional driving range up to 449 km with the Kona Electric. Whatever you decide, you’ll always feel connected and safe thanks to the advanced Smart Tech.

The future looks good. Technology awaits.

Next awaits. Visit Hyundai.com/eu

Fuel consumption in l/100km for the Kona Hybrid: Combined 3.9–4.3 l/100km, CO2 Emissions 90–99 g/km.

The Hyundai 5-Year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorized Hyundai dealer to an end-customer, as set out in the terms and conditions of the warranty booklet.

8 years or 200.000 km warranty on vehicle battery unit. Local terms and conditions apply. Contact your official Hyundai dealer for further information.

FINANCIAL MODELS

WHY LEASING AND RENTAL WILL CONVERGE @StevenSchoefs

Will leasing and car rental converge? It’s a long-standing prediction, but one that may come true in the brave new world that is tomorrow’s fleet and mobility ecosystem. So, if it’s coming, what will it mean? We asked two industry giants: Michel Taride, former Group President at Hertz International and Pascal Serres, former Deputy CEO at ALD. Mr Taride has 38 years’ experience in the car rental industry, Mr Serres more than 25 years in leasing and fleet management. He is currently also the Chairman of the Fleet LatAm Advisory Board. That’s an impressive amount of pooled wisdom and experience. So, what’s the low-down?

Gentlemen, will long-term leasing and short-term car rental converge?

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Pascal Serres: “I believe that the evolving requirements of consumers, especially in new mobility, mean that the long- and short-term businesses will indeed converge.”

Michel Taride: “I agree that they will converge and complement each other.

However, at some point, they will also compete with one another. And that’s fine. Their relationship today is one of supply. I believe leasing companies will increasingly operate private leasing and become suppliers of consumers who are also looking for short-term rental and mobility solutions. On the

other hand, short-term rental companies are growing the multi-month rental segment and are already operating carsharing, hence the overlap.”

PS: “Both will indeed be complementary. Short-term rental companies provide replacement and pre-delivery cars to leasing companies, who could offer in return remarketing and refinancing solutions. This is a business of competitors who are also partners. I believe the major limitation of long-term leasing is its lack of flexibility. Supplying a car for three years and 90,000 km: that’s the core business. But customers today are looking to switch cars and to have shorter contracts. So, flexibility will drive the future of long-term leasing. However, the existing business model of longterm leasing is very profitable when most rent-a-car businesses are in financial stress, except for Sixt SE, Localiza in Brazil and a few others. And that’s strange, because the pricing structure of the short-term business is more sophisticated.”

MT: “I see short-term rental as fast-moving, complex and very competitive. It depends on many external factors and multiple variables which are not easy to predict. A typical month starts with no more than around 20% of the bookings already in.

And there is a tiny margin for error in planning, in order not to miss revenues and operating costs. And retail pricing changes millions of times a day…

Plus, unlike with leasing, the residual value (RV) at the end of the car’s life is not known beforehand, nor is the level of usage. Compare that with the leasing business model: if everything is managed correctly, it is almost impossible for a leasing company to make a loss. I think things will change – the lack of flexibility for the corporate segment means leasing companies will have to move into “multi-months”, and that “multi-month” product has never been

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Together Michel Taride and Pascal Serres have more than 60 years experience in international leasing and short term rental business.

Why are some rental companies profitable, and others not?

MT: “For a number of reasons, starting with leadership and strategy in its broad sense: are you a premium or low-cost brand? Do you want to be a leading global operator, meaning you need to be the best to everyone, everywhere, or more specifically target airports, the leisure segment, etcetera.

This comes with a lot of risks, thefts, damage, accidents, bad debts, which all can be very costly. Good companies with highly experienced leadership, entrepreneurial culture, disciplined execution and good tools know how to manage these risks, they don’t go after everything but choose their battles wisely, and as a result operate profitable businesses.”

PS: “When you look at short-term rental, you see two groups. First, those ones with a market which accounts for, say, 80% of their revenue: for Sixt it’s Germany, for Localiza it’s Brazil, for Enterprise it’s the US. Sixt and Localiza are already mixing short- and longterm, even if the short-term segment still represents around 80% of their revenue. They have a different business model and their shareholders are families. This facilitates a longer-term view of the company. The second group is Avis, Hertz and Europcar which have been facing lower profitability in the recent past.”

Who’s better placed to respond to the new mobility challenge?

Lease or rental companies?

MT: “Smart Mobility – which for me is really pertinent in large urban environment – requires many types of players. And MaaS is the way forward in the increasing number of Smart Cities. This requires end-to-end fleet management, customer relationship management and logistics capabilities with all that it entails. There are very few industries which currently have all these skills. But car rental companies have most of them. As new types of cooperation take hold, a central question will be: Who owns the customer and the customer data?”

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PS: “I agree: the rental business is closer to current market needs.

Carsharing systems can also be used by rental companies – in effect, rental is a form of carsharing. But profitability is the limitation. So any integration will require finetuning the business model. Long-term lessors are beginning to diversify their offering, though, with car-switching and so on, and are getting closer to new needs.”

MT: “Leasing companies are masters at B2B, and with corporates changing their needs, they are well placed to do fleet management. So they can take care of shared mobility within a client company.”

Final question: do both industries have a bright future? And what about OEMs? MT: “For short-term rental, yes – if they transform themselves and become relevant to Millennials, not just the older generation. But they have a tradition of transformation and survival, so there’s no reason to doubt they’ll manage this latest disruption, in fact a revolution.

OEMS will find it more difficult to transform. As a factory-based operation, they lack flexibility. With their size and structure, they lack the required speed to change direction.”

PS: “Lease companies are doing well and are well placed to take advantage of the changing landscape of the future – if they adopt a long-term view.

What’s important for the industry as a whole, is that the service business will likely take over from the asset business, which will affect OEMs as well.”

Michel Taride is the 2019 inductee into the Fleet Europe Hall of Fame.

Pascal Serres was inducted into this international fleet and mobility pantheon in 2013.

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properly serviced by either part of the industry. The 6-to-18-month market is there for the taking.”

FINANCIAL MODELS

NEW ATHLON CCO @Frank_J_Jacobs

On 1 October, Marchel Koops took over from Peter Derks as Athlon’s Chief Commercial Officer.

A thumbnail portrait, in three questions and answers.

What will change with you as CCO?

Marchel Koops, new CCO of Athlon.

“First of all, Peter did a great job by focusing on our customers while integrating Athlon into Daimler. Building on that foundation. I’ll bring the experience I gained in my previous role, managing Athlon Netherlands, our most mature market. There, we created holistic solutions for fleet electrification and fostered employee flexibility by introducing a mobility budget, and

more. I’ll take that innovative spirit with me into my new role.”

Which business areas will you be focusing on?

“Harmonisation of our products within Europe – bringing solutions to as many of our markets as possible.

Furthermore, I believe that flexibility and sustainability will be key for future fleets. So we will be widening our portfolio with innovative rental and subscription models.”

Can you tell us a bit about the man behind the job title?

“I’m married, with 2 sons aged 17 and 19. Golfing, cycling and sailing keep me fit. An I’m into classic cars.”. Golfing, cycling and sailing keep me fit. And I’m into classic cars.”

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WHEN YOU KNOW WHAT FITS YOUR FLEET.

THE ALL-NEW ŠKODA KAMIQ Combined fuel consumption and CO2 emissions according to the legislation of the concerned country.

www.skoda-auto.com 42

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System Flexibility Market research, product, pricing, advertisement, logistics… are all key in defining innovative new products and getting them rolled out quickly. The true enabler however is your IT system.

System limitations can have a severe impact on the end-user experience.

A legacy system with a lengthy development and testing cycle can undo your organizations efforts to launch an innovate new product.

Hybrid systems Meeting tomorrow’s challenges will require different, hybrid systems that can manage both contracted and managed vehicle use to support a broad spectrum of product lines: financing, leasing, renting, sharing as well as new blended products combining elements of these.

When we look at the automotive and automotive finance sectors today, we see different players who are all part of the larger automotive value chain: OEMs, captives, rental and leasing companies; are all taking up position to enter a new market taking shape: the mobility market.

Today, we see new products available to customers that focus on individual choice, flexibility and user experience. In a changing market, flexibility and agility are key. The capability to detect shifting or emerging customer needs, define a business case and go to market with a new product to profitably meet customers’ demands are the

ingredients for success. Car subscriptions are starting to take off. New products blend traditional financing with driver-centric connected services or vehicle sharing, both corporate and peer-to-peer.

Competing on customer experience The customer journey is moving online.

In our always-on, customer-centric, digital society, customers have high expectations about what is possible online. The customer journey starts with google and, ideally, ends with the ‘order now’ button on your website or app. Customer experience has always been an important part of the automotive industry’s mindset but providing the ultimate customer experience is

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More info www.sofico.global

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Automotive and mobility: an evolving market & product offering

Continued success in tomorrow’s automotive world will rely on many factors but a key enabler will be the availability of a hybrid system that can bridges contracted vehicle usage (the finance/ leasing perspective) with user-centric, value-added mobility and connected car services to orchestrate and aggregate a broader and more complex supply chain of multi-modal mobility services.

REMARKETING

DRIVERS “CLUELESS” ABOUT FW&T @ Frank_J_Jacobs

Most drivers are “absolutely clueless” when it comes to the Fair Wear and Tear (FW&T) conditions of their contract, says CARA chairman Wolfgang Reinhold. With the rise of private lease formulas, that ignorance is increasingly costly.

A recent study by Autoglass shows that half of all private-lease drivers in the UK don’t understand their FW&T policy. For many, that leads to unpleasant surprises: one in four is charged for extras when returning the car, mostly for damage repair. In 70% of the cases, the extra cost comes as a surprise to the drivers – at an average well in excess of €500, doubtlessly an unpleasant one.

First-hand experience Due to the local popularity of formulas such as Personal Contract Purchase (PCP) and Personal Contract Hire (PCH), leasing agreements make up around 90% of the private new-car market in the UK. But private lease has some history in mainland Europe as well and is growing in popularity. And with it, the risk of unpleasant end-of-lease surprises. Which Mr Reinhold recently experienced firsthand. As chairman of the European Car Remarketing Association – CARA for short – Mr Reinhold is intimately aware of the importance of FW&T policies.

Criteria for what is ‘fair’ and ‘unfair’ wear and tear have a great impact on a vehicle’s residual value. Unfortunately, there is no universal standard for those FW&T criteria. They vary, sometimes per company, per country, or even on the subjective whim of the vehicle inspector.

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FW&T Guidelines One of CARA’s projects has been the establishment of universally applicable FW&T guidelines. As a result, few people know more about FW&T than Mr Reinhold. Of course, the team defleeting Mr Reinhold’s privately leased vehicle didn’t know that. Nor did he tell them – until they saddled

Even if you’re aware of the Fair Wear & Tear conditions, how do you know they’re ‘fair’ to begin with?

him with a repair bill of around €2,000.

“That was unjustifiably excessive.

I explained to them that I knew a thing or two about FW&T, and very quickly the repair bill was reduced to €400.” Of course, not everyone has the same knowledge or credentials as Mr Reinhold – who worries about FW&T excesses on the private-lease market. “Captive lease companies have a contract with their OEM, which has to take back the end-of-lease vehicles.

So, if those captives see an opportunity to make some extra money on returning cars to offset their depreciation, they’ll take it. Perhaps your dealer will go easy on you if you renew your private lease contract with them. But perhaps they won’t, especially if you opt for a mobility solution elsewhere.”

General ignorance In a way, the general ignorance around FW&T is baffling, Mr Reinhold finds: “If you rent an apartment, you usually

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have a good idea from the start of what constitutes Fair Wear and Tear.

You know whether can put screws in the wall, and whether you should repaint at the end of the contract.

That’s not the case when it comes to cars.” Of course, company car drivers are shielded somewhat from the direct impact of FW&T – and from the need to read the small print. Their companies show – varying – degrees of generosity when it comes to repair bills, and fleet managers have the advantages of experience and strength in numbers when negotiating end-oflease conditions.

Universal standards But with the recent, steady rise in private lease contracts – quite often within a corporate context – the FW&T onus is shifting decidedly towards the driver. “Because of their rising numbers, it’s increasingly crucial that private lease drivers are made aware

of the FW&T conditions – ideally at the beginning of their contract. But whose job is that? The lease company’s?

The government’s? That’s an ongoing discussion, at least here in Germany.”

Complicating that discussion is the aforementioned lack of universal FW&T standards. Even if you’re aware of the FW&T conditions in your particular policy, how do you know they’re ‘fair’ to begin with? “That’s why we at CARA created our FW&T guidelines 1. They’re not a standard that must be followed, but a high-level set of recommendations.” says Mr Reinhold.

Automated inspection Until now, vehicle inspection is an entirely human process, with all the subjectivity, variability and fallibility But several companies are developing automated inspection systems that are based on high-definition cameras and

“It’s a good thing, these systems. But it’s not ready yet, and it will be a few years before it is,” Mr Reinhold concludes.

HOW TO AVOID UNFORESEEN REPAIR COSTS Is your privately leased vehicle approaching its end of contract? Here’s what to do to avoid an unpleasantly high repair bill:

1 .Find your contract 10 to 12 weeks before it ends, check FW&T terms and honestly appraise potential damage (when in doubt, ask a friend or colleague’s opinion).

2 Check that third-party repairs are allowed and shop around for the best deal.

3 .Third-party offers can be useful even if you don’t use them: it’s how 19% of lessees in the Autoglass survey managed to negotiate down the cost of their repairs with their lease company.

4 Check your insurance for windscreen cover: 22% of repair bills were for glass repair or replacement, but chip repairs are usually covered by insurance.

For more on CARA’s FW&T recommendations, go to https://cara-europe.org/, click on ‘Library’ and go to ‘Fair Wear & Tear’.

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1:

machine learning. That should reduce the financial margin of FW&T discussions like the one Mr Reinhold had with his lease company to a minimum.

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REMARKETING

“DIGITAL INTEGRATION IS THE WAY FORWARD” Benjamin Uyttebroeck

@uytteb

Performing 500,000 vehicle inspections each year makes Macadam one of the largest players in the industry. “We are a market leader and a trendsetter,” commented Bertrand Donck, CEO. From the Macadam headquarters in Belgium, Mr Donck manages a company that has customers in 13 countries: the Benelux, France, Germany, Italy, Switzerland, Romania, Spain, Portugal and the three Baltic states.

Macadam is best known for its end-of-contract vehicle inspections, an activity growing by 15% each year, but the company does much more.

“We also offer management systems for logistics and vehicle refurbishment and we developed a vehicle inspection app,” explained Mr Donck.

TCO calculator The new services Macadam unveils each year help the company cement its market-leader position. “We develop smartphone apps like CarCheck and management applications for our customers, the logistics or automotive industry in general,” said Mr Donck.

A more recent example is the CarCost Advisor app, designed by Euro Fleet Consult and developed by Macadam’s IT department. CarCost Advisor is an app that makes it easy to calculate a vehicle’s TCO, including its environmental and fiscal impact.

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Data integrator Automatic Damage Recognition is being advocated by various companies, including Macadam, but Mr Donck believes this AI technology isn’t ready for production yet. “The technology needs further development before we can fully rely on automated inspections for the 500,000 off-lease vehicles we inspect each year.”

Bertrand Donck, CEO, Macadam: “You’re much stronger when working together than when fighting each other. But it takes two to tango.”

Macadam’s AI project. He argues all data needs to be integrated, from mileage data to the 360° footage of the vehicle. As data will be useless to the customer without investments in digital data integration, all stakeholders in the remarketing flow will need to work together in the future.

Partnerships “I strongly believe in partnerships,” says Mr Donck. “Together, suppliers can achieve better performance for the customers they share. But it takes two to tango.”

“Macadam can be the data integrator for customers in the remarketing industry,” he added.

According to Mr Donck, digital data integration is as important as

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MACADAM PITSTOP An online interactive management tool to manage refurbishments in case of driver changes and returned rental cars. PitStop includes automated actions to generate e-mails that are sent automatically to the stakeholders such as the car wash, the body shop or the transport company.

MACADAM CARCHECK A smartphone app drivers, logistics companies, fleet managers and professional inspectors can use to perform their own vehicle inspections.

The data can be integrated into the refurbishment or the remarketing process.

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The Octo Fleet Telematics Solution can meet the real needs and demands of fleet managers, who increasingly need value-added services such as optimal vehicle maintenance. This can

be achieved through the correlation of users’ driving habits, vehicle diagnostics and the use of smart analytics, capable of producing accurate predictive models. The devices can be factory installed or added as aftermarket additions. In both cases, the associated services are provided by technology service providers such as Octo. The difference being that the manager can obtain telematics services independently from the vehicle brand, which facilitates homogeneous fleet management, also through the adoption of an external platform. Octo’s role is to provide a multi-service platform that is flexible and scalable and can be adapted to any type of vehicle, whether electric or combustion, to any business model of rental companies, to provide an answer that can reduce the TCO, but also to help generate incremental revenues.

The recent acquisition of Nebula technology, a leading company in intelligent vehicle diagnostics for any brand,

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the integration of Safo, a fines management sector leader, and of Filo, a start-up with a vertical competence in Bluetooth connectivity, are 3 examples of skills and technologies integration within the solutions for fleet managers to which are added integrations with excellences such as Salesforce and Zuora for subscription-based payment and billing models.

More info www.octotelematics.com

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Octo Fleet Telematics is a solution for advanced company fleet management.

It consists of the latest generation of web-based platforms for advanced fleet management, an on-board telematics device designed, developed and distributed by Octo and a dedicated mobile app. Octo Fleet Telematics can manage multiple fleets and multiple users for each fleet and allows you to leverage advanced analytics to behavioural, contextual and other real-time telematics data, so you can make intelligent fleet management decisions, including diagnostics information.

Today, more than 200,000 fleet vehicles are connected with Octo’s Fleet Telematics solution, offering services to fleet managers of leasing companies, short- and long-term rental and vehicle sharing operators.

SHARED MOBILITY

DEFINE MOBILITY, CREATE MOBILITY TOOLS Fien Van den Steen

With traffic congestion soaring and increasingly strict environmental standards in cities, the car may not be your most attractive urban mobility mode. How should you go to the office then? We asked Yves Helven, Global Fleet Expert and Managing Director at Connector.

1

Kind of trip – commuting vs business

There are various factors at play when assembling your corporate mobility package, explains Mr Helven. “Distance is one factor, another is the kind of trip. There is commuting and there are business trips.” Since both come with different taxation treatments, their transactions should be separated, so they should be managed separately as well.

2 Distance

Once you know what kind of trip you are working with, you can have a look at the distance. Mr Helven explains how different modes are preferred for different distances. “The traditional scale goes from 0 to 2 km for walking, 2 to 5 km for cycling, and everything above 5 km would be interesting for electrified transportation such as e-bikes, e-scooters...”

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3 Different modes

When you have determined the type of trip and the distance, you can fill in the needs. “The backbone must be public transit,” says Mr Helven, “while micromobility can fill in the gaps of the public transit system. When it comes to micromobiliy modes, you don’t have to calculate the distance between the home and the office, but between the most convenient public transit hub

and the home at one side and the office at the other side. Once you have these questions answered, you can choose the mobility modes based on availability.” Which should complete all pieces of the puzzle.

4 Company values

Besides practical issues such as distance, availability and kind of trip, there are some other factors at play as well. For instance, corporate mobility modes can be adapted to corporate values.

A sporting goods company Mr Helven has worked with, prefers mobility modes to be active and green. So the company increased the distance scale for preferred mobility types, leading to longer distances done by walking and/or cycling.

Walking can be done up to distances of 3km, while cycling goes up to 7km, for instance. The other mobility modes are electrified and shared, in order to reduce the company’s carbon footprint. To incentivise their employees to take the most active and green commute mode, the company takes care of the entire commute. “To get people out of their cars,” explains Mr Helven, “this company decided to organise and pay the entire commuting process, which is exceptional.”

Every employee receives a monthly commuting budget. Whenever they want to perform a trip, the corporate commuting application calculates the best way and gives various options.

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The eco-friendlier and more active, the cheaper the trip. “If you organise your commute the most optimal way possible, which will be by using public transit, cycling, walking and scootering, the received budget will be sufficient.

Yet, if you decide to use the car, you will consume your budget much faster.

For instance, a monthly budget can be sufficient for 40 bike rides, or for 2 to 3 car trips. So, if you use these car trips, you have to top op your budget yourself. By doing so, the company wants to incentivise its employees to go for an active commute.”

5 Business mobility

In the case of business mobility, you can still choose active mobility modes, but you have to take into account that employees may need to take samples or other goods with them. Mr Helven explains how the

How to start?

sporting goods company also replaced this part of mobility by greener modes.

“There is carsharing, not via an external application, but via the corporate pool by increasing the number of pool cars from 2-3 to 25-30, which will be electrified.” “In addition, environmentally friendly cars are chosen,” goes on Mr Helven. “By not opting for sedans or SUVs but for small electric cars such as the BMW i3, you are not polluting the city, and you take up less space.”

6 Mobility provider

So, you defined the mobility needs of your company but how will you implement them? “Mobility providers are mostly focused on consumers, rather than on corporate clients,” says Mr Helven. “A big company can have about 1,000 mobility transactions a day, often with their own tax treatment, but these applications don’t have a

“At the moment, custom-made solutions are the best solutions,” says Mr Helven.

“Various companies are working to develop a corporate solution, but they are no experts in corporate mobility and they still lack some pieces of the puzzle.” So how can you put this in practice today? Yves Helven gives us the 4 first steps to take.

1. Define your vision on mobility.

Some companies want to get rid of cars, while others want hybrid solutions in which they can reduce the carbon footprint while keeping cars at the same time.

2. Leave the one-employee-one-car model. By changing your car policy smoothly by shifting from the userchooser model to a fixed model. If everybody drives the same car, with same engine, same options, same colour etc., it becomes easier to break the link between the employee and the car.

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3. Once you have reached that, you can reduce the number of cars and start carsharing as cars are only used about 30% of the time. As a result, you will free up budget.

4. Now you can start using this free budget to experiment with mobility, by adding things like bikes, public transit passes,…

Three tools In reality, you need change management before you can change your mobility, followed by optimising what you have and filling up the gaps with mobility. As a result, you will end up with three tools: (1) the dedicated car, (2) the shared car, (3) mobility.

Depending on the specific situation you can implement the various tools to varying degrees. For instance, a corporate mobility offer could be 40% dedicated cars, 40% shared cars and 20% mobility in Antwerp while in Berlin it can be 0% dedicated car, 30% shared cars and 70% mobility.

In Antwerp

20%

mobility

40%

dedicated car

40%

shared car

In Berlin

30% 70%

shared car

mobility

When one mobility mode goes up, the other can go down, making the system future-proof and flexible. Imagine a new metro line was constructed. You could add it to mobility and reduce the share of dedicated cars.

With these four steps, the three tools and tailormade solutions like those created by Connector, mobility becomes a useful mobility tool with long-term profits in terms of planet, profit and people.

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standard functionality to order every transaction according to a different tax treatment. In addition, the current mobility providers treat all trips in the same way in their pricing, whether they are greener or more active or not.” Indeed, what today’s mobility providers offer is not necessarily what companies are looking for. So, companies should go for a tailormade mobility solution rather than a standard one.

“That’s why we need some pioneers and early adaptors, the first ones to develop the solution, the latter to implement it,” says Mr Helven.

AUTONOMOUS

PARTIAL AUTONOMY IS CLOSER THAN YOU THINK Mark Sutcliffe

Think the arrival of autonomous and connected vehicles on Europe’s roads is still years away? Think again. Fleets will be using these technologies to manage risks and improve safety within three years.

Whenever the subject of self-driving cars is discussed in the boardroom, it’s only a matter of time before someone relates the story of the guy who got killed while his Tesla was on Autopilot and the pedestrian fatally injured by an Uber autonomous car in Arizona.

Three deaths have been attributed to self-driving cars in the USA, along with many thousands of ‘interventions’ recorded, in which a supervisor takes back control of the car from the computer.

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And while they made headlines around the world, these regrettable casualties are a drop in the ocean when compared to the 40,000 people who lost their lives on US roads in 2018. In Europe 25,000 people lost their lives on the roads in 2018 and despite continuing reservations about self-driving cars, connected and autonomous vehicle technology will be at the heart of a Europe-wide initiative to halve this shocking statistic over the next 10 years.

By eliminating the potential for human error, many experts believe that the advent of 100% autonomous cars will dramatically reduce road deaths, but in the immediate future partially autonomous safety systems are also expected to deliver road safety dividends. After years of improving statistics, the numbers of deaths on European roads have remained around 50 deaths a year per billion inhabitants for the last five years – a fall of just 3% since 2013. And although road deaths have fallen by one fifth since 2010, the EU will miss its target of halving the 2010 rate of fatalities by 2020. In response,

the European Commission has drawn up a new policy framework which includes a package of road safety devices that will become mandatory on all new cars sold in the EU from 2022. The European Transport Safety Council (ETSC) spearheaded the campaign for the introduction of the following connected and autonomous driving aids, which received the green light from MEPs in April.

Intelligent Speed Assistance (ISA) Inappropriate speed is the primary cause of fatalities and serious injuries on the road, yet observation of legal speed limits remains poor. These systems use in-car telemetry or in some cases, geofencing to draw the driver’s attention to the legal speed limit.

Autonomous Emergency Braking (AEB) Already available on some cars, these systems use radar and/or lidar sensors to warn when a collision is imminent and – if the driver doesn’t react – automatically apply the brakes. They can’t always avoid a collision but the severity of the impact is often reduced.

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Lane Departure Warning/Assist These systems alert the driver when their car veers out of a motorway lane and the more advanced versions are now capable of nudging the vehicle back into line without any input from the driver.

Attention Assist Sensors monitor the driver’s eye movement and if they show signs of fatigue or drowsiness, tells them to take a break before continuing. In the UK, the ambitious Autodrive CAV project trialled the next generation of accident avoidance technologies on public roads in Milton Keynes and Coventry.

Innovations such as Electronic Emergency Brake Lights – which provide advance warning when the vehicle ahead brakes suddenly – and Intersection Movement Assist, which warns a driver when it is unsafe to enter a junction due to a high probability of collision. Researchers concluded that while connected technologies like Intersection Movement Assist require additional roadside infrastructure and are still some way off, the Electronic Emergency Brake Light systems could be introduced in the near future and

would make a significant impact on numbers of road accidents.

Enhanced use of telematics An earlier EU road safety directive made the fitting of an eCall button mandatory in all new cars sold from March 2018. This device automatically alerts the local emergency services in the event of a serious accident.

Onboard sensors detect the severity of the accident, the fuel type of the vehicle, the number of passengers and the exact location. This means that all new cars, by default, have the necessary connectivity for telematics and tracking fitted as standard and paves the way for making telemetry systems cheaper and easier to install in the future.

Fleet managers who want to take a more proactive approach to risk management and driver safety could potentially make use of this kind of connectivity to monitor driving styles and identify potentially hazardous behaviour and intervene to manage it.

Some EU fleets have enjoyed success with using telematics to ‘gamify’ good driving practice and reward company car drivers with incentives for achieving the highest fuel consumption on the fleet or logging the lowest percentage of accidents per 1,000 miles.

between different elements of the AV ecosystem so that they all operate within the same timeframe remains a major challenge.” Universal availability of 5G could go some of the way to ensuring that V2X infrastructure (e.g. for managing vehicles speeds on smart motorways) is as fast as it needs to be to ensure uniform, real-time connectivity.

5G connectivity could also be used to bill motorists for using toll roads or levy variable congestion charges for entering cities. Alternatively, it could be employed to re-route vehicles to avoid tolls and locate an available parking slot to enable them to finish their journey using public transport. In August, the EU unveiled an action plan to manage the rollout of 5G so that its benefits are felt as widely and quickly as possible. But it took more than six years for 4G to reach 96% penetration of the EU populace, and if the 5G rollout takes as long to extend across the continent, the infrastructure to required support autonomous cars will not be fully in place before 2025.

By then, some of the more advanced autonomous driving systems may have evolved to such an extent that roadside infrastructure and connectivity becomes obsolete.

Oxbotica In the UK, for example, Oxbotica recently demonstrated autonomous software that does not require 5G or any connectivity with roadside infrastructure or even GPS. A fleet of four Mondeos demonstrated Level 4 autonomy around a 15-minute circuit on busy open roads around the UK Capital’s Olympic park. The cars navigated roundabouts, traffic lights and right and left turns in a variety of traffic conditions. In the short term, Oxbotica’s software will be deployed in vehicles operating in geofenced privately owned locations such as airports or container ports within the next couple of years. Oxbotica’s commercial director Richard Jinks said: “Autonomous vehicles will eventually become ubiquitous on public roads, but there are enormous opportunities in many industries – whether that’s at airports, down mines or in farms – to capitalise on in the intervening period.”

“In the longer term, autonomous vehicles will reduce accidents and improve road safety and there may come a time when we ask ourselves why we ever allowed humans to get behind the wheel.”

Perhaps the biggest development in the world of CAVs is the arrival of 5G – facilitating much faster and more reliable mobile communications. One of the key challenges identified by the UK Autodrive Project was of latency in communications between vehicles and roadside infrastructure – sometimes referred to as Vehicle to Everything or ‘V2X’. To avoid accidents, improve traffic flows and seamlessly re-route vehicles around congestion, communication needs to be instant. The project’s final report concluded: “Synchronising the processing speeds

Self-driving technology will help manage risks and improve safety.

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5G Rollout

Parcel Delivery & Last Mile Solutions Why connectivity is key for continued excellence in Last Mile customer service

28&29 Brussels JAN. 2020

BELGIUM

24H

POWER EVENT

Main topics : • • • •

Today’s parcel delivery challenges Fleet Management optimisation Last Mile delivery solutions, today and tomorrow Connectivity and telematics solutions to drive your customer experience

REGISTER NOW For registration and more information, visit www.conference-fleeteurope.com