Smart Mobility Management Issue 012 by Nexus Communication

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#12

Nexus Communication â&#x20AC;&#x201C; Smart Mobility Management #12 - Quarterly periodic magazine November 2013

International Integrated Corporate Mobility Solutions

I NEW MOBILITY FUTURES

Sparking an interest in electric mobility

I JOINING UP JOURNEYS New models of mobility make sense in the urban jungle

I CASE STUDY

Fruits for London, Serviceplan and GSK share their experiences of managing mobility

Join also the online community at www.smart-mobilitymanagement.com

Help the environment. Go easy on your ﬂeet budget.

SHARE YOUR FLEET® The ﬂeet solution from the innovation department

Ever more companies nowadays are earning hard cash from sustainable economising. SHARE YOUR FLEET, the innovative car sharing offering for company fleets, makes for even more effective vehicle use, simultaneously reducing fleet leasing costs by up to 25% in the process. You can already join us in driving especially environmentally-friendly cars from CITROËN and PEUGEOT – with all-electric models coming soon – because, for us, sustainable behaviour is the best way forward.

Would you like our advice? Simply write to us at shareyourﬂeet@mpsa.com or visit us at www.share-your-ﬂeet.de

www.share-your-ﬂeet.de

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04.09.13 12:08

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Jonathan Green Chief Editor jgreen@nexuscommunication.be

Our new mobility future is here

here are big changes happening in the world of mobility. It is an electrifying time. The internal combustion engine has a new team mate and one that receives power from the electricity grid. After spending years on the side streets, the electric vehicle is now ready to takes its place in the fast lane. Will it be a star performer? We take a look the story of electrification (page 12) before giving you some study time to get to know your PHEVs from your BEVs (page 16). It’s then time for a tour of team electric by introducing the models on the market that could make their way into your fleet (page 21). Mobility is moving up a gear – and its not just e-mobility. Daimler Mobility Services CEO, Robert Henrich, told delegates at the Urban Mobility 3.0 conference that no other world market will witness a shift as big as that which will happen in the mobility market over the coming years (page 28). With population density in urban centres on the rise, the congestion conundrum, and urban pollution, the attitude of global cities towards mobility is changing fast. Smart cities need smart infrastructure to attract smart investment in tense economic times.

Calameo Read the latest magazine on your tablet! http://www.calameo.com/accounts/1191622

New ways of moving the masses about are urgently needed, and with big data and connection new solutions are being presented. Henrich is not the only Mobility CEO eyeing up the lucrative business opportunities that new mobility futures could present. How corporates procure and manage mobility, and mobilise workers is set for a seismic shift. Futurist Rohit Talwer talks to us about the rise of robots (page 46), how they are moving into the workplace and what this could mean for managing fleets in the future.

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Mobile Smart Mobility Management on your smart phone.! www.smart-mobilitymanagement.com/mobile

We all need to change to solve the mobility challenge. Perhaps the bigger question is whether humans or robots will be making the changes in the future? Only time will tell. Jonathan Green Chief Editor jgreen@nexuscommunication.be www.smart-mobilitymanagement.com.

smart mobility management - n°12 I 3

CONTENT

FOCUS

VISION

CASE STUDIES

NEWS

E-Mobility: on the road to a revolution

26 Switching to electric vehicles: Fruits for

30 In the Mobility Mixx

E-Mobility:

15 Interview with Carolin Reichert,

Are we about to get charged up?

19 Looking at the E Options 20 Motoring to E-Mobility 21 E-Mobility on Show

Smart cities demand smart mobility

Head of Mobility Peugeot Citroën Automobiles

28 Urban Mobility 3.0

London

32 GSK Carpooling suits us

36 Serviceplan: Why car sharing works for us!

34 On Demand Mobility 38 Joining up Journeys 40 Mobility frontiers: Is it time for P2P?

45 Industry News: Employee Benchmarking Survey

33 Mobility time: Its time for taxis

48 Wearable Tech 49 Industry News: BMW AG Mobility Winner

50 Experiencing the VW e-up!

42 Video as a Solution 46 Judgement Day:

Robots in the Workplace

www.smart-mobilitymanagement.com

Kathleen Hubert HEAD OF MARKETING & SMART MOBILITY MANAGEMENT LEADER (khubert@nexuscommunication.be)

Caroline Thonnon HEAD OF BUSINESS DEVELOPMENT & GLOBAL FLEET LEADER (cthonnon@nexuscommunication.be)

Jonathan Green CHIEF EDITOR SMART MOBILITY MANAGEMENT (jgreen@nexuscommunication.be)

Steven Schoefs CHIEF EDITOR - FLEET EUROPE (sschoefs@nexuscommunication.be)

David Baudeweyns INTERNATIONAL SALES & BUSINESS DEVELOPMENT (dbaudeweyns@nexuscommunication.be) Romina De Gregorio INTERNAL SALES & OPERATIONS (rdegregorio@nexuscommunication.be) Vanessa Digneffe INTERNAL SUPPORT (vdigneffe@nexuscommunication.be)

Laetitia Fernandez FINAL EDITOR (lfernandez@nexuscommunication.be)

MANAGING PARTNER: Thierry Degives EDITOR: Thierry Degives Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium) Phone: +32 4 387 87 94 Fax: +32 4 387 90 63 URL: www.nexuscommunication.be

Frédéric Van Vlodorp MANAGING EDITOR (fvanvlodorp@nexuscommunication.be) CONTRIBUTORS: Alistair Millar, Frank Jacobs, Tim Harrup, Caroline Watson (Energy Saving Trust), Martyn Briggs (Frost & Sullivan)

SMART MOBILITY MANAGEMENT www.smart-mobilitymanagement.com contact@nexuscommunication.be

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With distance function, park assistance function and role model function. The new E-Class. Efficiency in top form.

A Daimler Brand

The new benchmark for efficiency. With a combined consumption of just 4.1 l/100 km, the E 300 BlueTEC HYBRID has CO₂ emissions of only 107 g/km. That makes it one of the most economical models in its class and the ideal vehicle for any fleet. www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 14.4–4.1/8.2–3.8/10.5–4.1 l/100 km; combined CO₂ emissions: 246–107 g/km. Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart

Efficiency class: Fâ&#x20AC;&#x201C;A+. different types of vehicle. The vehicle shown features optional equipment.

FOCUS

Smart Cities

Smart cities demand smart mobility With the world’s population set to reach 9 billion people by 2050 cities are hovering up new inhabitants. With a projected 7 billion people living in cities by this time, today’s transport system will need to be turned upside down if gridlock is to be avoided.

ncreasingly levels or urbanisation, a new financial reality and resource pressures mean that our cities need to get smarter. Lucky for us they are. The scope of change taking place in cities today is immense and its pace unrelenting. A new reality For decades we have been dependent on the internal combustion engine and cars to move us around the city streets. We have designed, re-designed and retrofitted urban infrastructure with the car at the centre of the design board. The result has been increasingly polluted and congested urban centres, and transport infrastructure that is now bursting at the seams. With rising population densities there is a new reality downtown. It’s a simple, but stark fact. Cities will not be able to cope unless there is a change in behaviours. In this new world the car, a symbol of economic and personal independence, is under scrutiny like never before. For years we have been magnetised by the car’s power, but scratch beneath the surface and our love affair with the automobile has been on the wane for years. The thing is we just didn’t know it. I love my car The global recession and cost of fuel has significantly cut the distance driven in many nations since 2008, including America, Britain, France and Sweden. At first glance it appears that the correla-

smart mobility management - n°12 I 8

tion between distance travelled and economic growth rings true. Once the economy picks up the engines of automobiles will rev up too. Well, maybe not. There are new voices presenting data that demonstrates the trend toward travelling less is not simply a blip caused by the current economic blight. The Economist magazine, using its own research, and that from the Australian Department of Infrastructure and US Department of Transport, found that average kilometres travelled by car in Britain, France, Germany and Japan has been falling steadily since 1990. Even car loving Americans are travelling less than in 1990, and pre recession falls in average distance per car were recorded in Spain, Italy, Australia, New Zealand and Belgium too. Successful cities The debate about our affection for the car is in its early days. There is a lot more certainty about what congestion in our cities could do to their economies. Investment flows to dynamic, evolving and engaging cities. It flows away from stagnated and congested ones. With cities competing on the global stage for investment, a congested and polluted cityscape does not attract investors or the global talent pool that follows them. An increasingly mobile workforce wants to reside in cities that are clean, uncongested and healthy. Congestion is a big, big turn off.

The International Energy Agency believes that improving the energy efficiency of urban transport systems could save as much as USD 70 trillion.

From an economic perspective many cities are already divorced from their nation-states, with investment coming from other global cities. This swirl of finance means that their economic might now rivals that of the countries in which they reside. Brussels in Belgium and Seoul in South Korea account for a massive 45% of their respective countries total GDP. Lisbon contributes 33% of Portugal’s GDP, Paris 28% of French GDP and London 22% of the UK’s. The list goes on and on. A country’s economic successful increasingly depends on one or a couple of its urban centres.

«The scope of change taking place in cities is immense and its pace unrelenting.»

MOBILITY PROVIDERS NAMED IN GLOBAL CLEANTECH 100 Ride-sharing operators Bla Bla car and Relayrides, smart parking provider Streetline, EV charging pioneer Chargepoint and traffic information management company INRIX were amongst the mobility companies named in 2013 Global Cleantech 100. The Global Cleantech 100 highlights the promise of private clean technology companies from all around the world, focusing on those it feels are most likely to make the most significant market impact over the next 5-10 years.

of Management, BMW AG, acknowledged the changes taking place. “In megacities the car can only have a future if we take the right steps to lead it from low emission to zero emission technology today”, he said.

Saving from smarter mobility If we get mobility right in cities there are big savings to be had. Research by the International Energy Agency has found that with improved energy efficiency of urban transport systems USD 70 trillion of spending on vehicles, fuel and transportation infrastructure could be saved between now and 2050. “Urgent steps to improve the efficiency of urban transport systems are needed not only for energy security reasons, but also to mitigate the numerous negative climate, noise, air pollution, congestion and economic impacts of rising urban transport volumes”, said IEA Executive

Director Maria van der Hoeven when presenting the report earlier this year. Emissions free e-mobility City administrators are starting to get tough to drive change, and automakers are getting the message. Congestion tolls, low emissions zones and outright bans on the automobile are taking effect in cities across Europe, North America and Asia. Something has to give. And it is not going to be the city. There is simply too much future finance at stake. At the Geneva Motor Show earlier this year Dr. Norbert Reithofer, Chairman of the Board

Automakers’ engagement in e-mobility is no coincidence. Over the past few years there has been a raft of e-mobility innovations and new models hitting the showrooms. The days of the ICE are far from over, but they look numbered in the city of the future. Mobility as a Service All electric automobiles running silently, emissions free and efficiently along the streets of tomorrow’s mega city is not going to solve the thorny issue of congestion. Congestion is always someone else’s fault. Drivers point fingers at one another and wag them at city administrators to ease their anger.

smart mobility management - n°12 I 9

FOCUS

Smart Cities

Aerotroplis, a new urban form, which places airports at the centre of city’s design is beginning to take flight. The self styled smart city of Songdo, South Korea, focused around Incheon International Airport is an example. The city sells itself as a launch pad for international trade into China. Closer to home in Europe we are heading for a capacity crunch with the number of flights forecast to increase by 50% over the next 10 – 20 years. With inefficiencies caused by Europe’s fragmented airspace bringing extra costs of 5 billion euros per year, a new approach to international connection is Europe is urgently needed. The Single European Sky is seen as the solution, but it is a project that seems to be perpetually in gestation. Digital connection Flights giving businesses face time with international partners is essential for a city in the global village, but being wired into the information superhighway is also a pre-requisite of success.

An increasingly mobile workforce wants to reside in cities that are clean, uncongested and healthy. Congestion is a big, big turn off. Integrated, flexible and joined up mobility is the order of the day. And it’s happening. From the rise of bike and car sharing, to mobility cards giving access all areas travel with instant flexibility, a city’s infrastructure is being liberated by connection, big data and real time information. Add in growing acceptance that we no longer need to own a car anymore, and our mind-set towards mobility is shifting. Once a product, mobility is now becoming a service, in the shared economy. The move towards service status could see cities chip away at the congestion conundrum. Technology is allowing cities to make better use of the assets that they have. Smart parking is one example. Experts estimate drivers searching for a parking space account for 30% of all urban traffic congestion. This could be significantly reduced with a smart parking solution that tells drivers which parking sites are free and allows a space to be booked on the hoof. Making parking a service offering rather than a product changes how assets are offered and, in turn, how consumers interact with them. This is just one small example of how a service based approach to mobility has the potential to outperform a transport focused one. International Interconnection In the global village our cities need to be inter-connected beyond their boundaries. The relationship between world cities keeps finances flowing and connection is integral to a smart city’s success.

smart mobility management - n°12 I 10

Online and international trade, and machine to machine and mobile communication, is only possible with state of the art digital networks. The importance of the internet for everyday life in a smart city cannot be understated, neither can what connection offers in terms of drawing investment in. It’s no longer just New York City that doesn’t sleep – cities all over the world are wide awake day and night. Digital communication enables information, people’s insight and experience to travel between borders at light speed. Neelie Kroes, Vice-President of the European Commission, responsible for the Digital Agenda, summed up the importance of connection in a speech given to Mobile 360 Connected Europe conference (GSMA)/Brussels this September. “The next generation of communications will look different. Not just people communicating with people, but people with objects, and objectives with each other. And those things will converge, especially in our smartest cities”, she said. In the same speech the Kroes announced that the EU was ready to agree a Public Private Partnership on strategic research for 5G, worth hundreds of millions of euros. The frontline for global economic dominance is taking place in cities, and it is smartest ones that will be the winners. The question for corporations is how to take advantage of the unique mobility solutions that are coming on stream in Europe’s smart urban centres. It will be fun finding out. Jonathan Green

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FOCUS

E-Mobility

On the road to a revolution The city of Barcelona - aside from offering generous tax breaks to businesses who deploy EVs - has teamed up with Nissan to manufacture a fleet of electric taxis.

From 0 to Racing Car in lightening quick time, or was it? We look at the journey: the history, and the future of the electric vehicle.

n 1995, in an episode of The Simpsons entitled ‘Homer the Great’, Homer Simpson and fellow members of a powerful secret society called the ‘Stonecutters’ sang the words: “Who holds back the electric car? Who makes Steve Guttenberg a star? We do.”

In 1838, a Scotsman built the first electric locomotive, which was able to reach a speed of 6 km/h. Throughout the last century, trains, trams and ambulances are examples of electric vehicles deployed; both in industry and on our roads. You could argue that the day of the electric car was always coming.

Whilst Guttenberg’s celebrity was, argua-bly, on its way out, the electric car lyric capitalised on a long-running suspicion: that an oil company conspiracy was kee-ping mass-production of the electric car at bay. A 2006 film entitled ‘Who Killed the Electric Car?’ offered a similar view.

Fast forward to the 2013 Frankfurt Motor Show and the car set to be used by all 20 drivers competing in new motorsport Formula E was unveiled. The Spark-Renault SRT01E fully-electric single-seater boasts the equivalent of 270 bhp, 18” treaded tyres, and (an unverified) top speed of 225 km/h. Impressive. Yet at the turn of the twentieth century, before the dominance of the internal combustion engine, electric cars held land speed records galore.

In the beginning Electric transport has been in use – in some form – since its conception in 1835.

smart mobility management - n°12 I 12

Those years after 1900 saw huge advancements in electric vehicle technology, but mostly within a company’s own four walls. Electric golf buggies, haulage trains, light-freight and construction vehicles were well-suited to their respective tasks, cheaper to run too. A mystery then, that despite their aptitude and competence, EVs wouldn’t make a dent in the mass market for another 100 years. Hence the conspiracy theories. A new dawn for e-mobility Come the late 1980s and a new dawn looked nigh. Air-cleanliness laws signed in the State of California precipitated General Motors’ interest in electric vehicles. The GM Impact concept car was unveiled at the 1990 Los Angeles Auto Show, and it looked like we finally had a tipping point.

«The question is whether the finances are convincing enough for corporates to get in and drive EV’s away in the numbers needed to make e-mobility a business as usual practice or a novel, nice to have, side line.»

However, GM undermined their newfound respect for EVs by lobbying alongside oil moguls to have the Californian air laws rescinded. At the same time, they offered wannabe Impact owners rental-only deals; the customer would have to give it back. Long story short, GM and friends got their wish, the air laws were repealed and the whole thing died down.

Mercedes innovator Thomas Weber reduced the ICEs predicted shelf-life, giving it just “20 or 30 years”.

Still, a seed had been planted. In the background, Honda, Nissan, Toyota and others had been quietly testing, building and trialling early versions of those EVs which are now a fairly common sight on our roads. Growing appetite for E-Mobility A trickle of EV sales came as big car manufacturers got their feet wet. There seemed to be a hunger for something new. It was Toyota that changed the tide in 2000 when – after three years of sales in Japan – it announced it would sell the fabled Prius hybrid model to a worldwide audience. Give or take a few months, it worked. After a faltering start, the Prius started making inroads; puncturing the market, and the public’s consciousness. Now in its third generation, the Prius sold its three millionth vehicle in June 2013. Driving in the Pruis’s trackprints, allelectric cars were the order of the day. From 2004, EVs started seeing daylight. Right now, major car manufacturers all over the globe – including Renault, Nissan, BMW, Ford, and Chevrolet – are serving a market on an upswing.

Where are we now In 2012, there were 120,000 unit sales worldwide and in 2013 there’s been no let up, with numbers predicted to increase by 50%. In Europe sales are predicted to be in the region of 400,000 by 2015. The city of Barcelona – aside from offering generous tax breaks to businesses who deploy EVs – has teamed up with Nissan to manufacture a fleet of electric taxis, an urban first that we will surely see replicated elsewhere. Whilst, Oslo, has the title of the EV capital of the world as there’s more plug in cars per capita than anywhere else. As of March 2013, there were 990 recharging points in the Norwegian capital

where the urban population is less than one million. In Norway EVs can drive in bus lanes, aren’t subject to VAT and get waved through road tolls. Electric appetite grows stateside too Not always the first to fly the green flag, America too was set an ambitious target of 1m EVs on the road by 2015 by President Barack Obama. Across the Atlantic, EVs are now outselling hybrids. It’s an important landmark. Navigant Research forecasts that EV numbers will reach 416,153 annual sales in the United States and 230,479 in Canada by 2022, by which time Pike Research reckons EV sales worldwide will have breached the 4m mark.

VIDEO: SMART MOBILITY MANAGEMENT INTERVIEWS THE OEMS ON E-MOBILITY

At the IAA Motor Show in Frankfurt Smart Mobility Management talked to the car fleet executives about their e-cars and the future of e-Mobility. Visit our website:

smart mobility management - n°12 I 13

FOCUS

E-Mobility

Spark-Renault SRT 01E fully-electric single-seater boasts the equivalent of 270 bhp, 18” treaded tyres, and (an unverified) top speed of 225 km/h.

tor Thomas Weber reduced the ICEs predicted shelf-life, giving it just “20 or 30 years”. You get the picture – EVs are settling in today so they might dominate tomorrow, they’re big news. But it’s not all smooth driving. The Future A fully charged Tesla Model S can manage as many as 265 miles, depending on its battery, but the Mitsubishi i-MiEV can only do 62 miles on a single charge. Recharge times can be lengthy too, although the presence of quick-charge points is increasing.

The USA’s premier EV project is ECOtality, a $230 million scheme launched in late 2009 to provide charger installation, aid the construction of ‘Electric Highways’ like that in Oregon and Washington State, and evaluate data so as to enable streamlined deployment of the next generation of EVs to come, and create as many jobs in its supply chain as is possible.

cal progress. All this as global political and economic events began to fluctuate wildly. Foreign oil, prices volatility, and its shaky place in international relations combined with a greening of the popular consciousness have taken us to where we are now. Is the ICE doomed? With new criteria at play, the fuelsucking Internal Combustion Engine just doesn’t tick those post-modern boxes. Its death has been scheduled for some time. Speaking in 2000, Bill Ford – great-grandson of Henry and Chairman at the car giant – said the Internal Combustion Engine (ICE) was doomed, but didn’t give a timeline.

Why now? Reasons for growth are many. On the surface, the trends can be attributed to better knowledge, the cost-saving and tax advantages (and better education on the latter), its impact (or lack of) on mother nature, and grants towards the improvement of the charge-up station infrastructure. Price too is improving. It’s clear there’s a growing appetite.

Ten years later, International Energy Chief Nobou Tanaka gave the ICE until 2050, and at the aforementioned Frankfurt Motor Show – where EVs were a major focus – Mercedes innova-

The supply and accessories infrastructure supporting the emerging electric vehicle market made big breakthroughs during a period of intense technologi-

ELECTRIC VEHICLE SALES BY COUNTRY IN 2012

As the two R’s – range anxiety and re-charging – are overcome we will be well on the way to increasing levels of EV adoption. The third R of big interest to corporate buyers is residual values. Heavy subsidies mean EVs resale value is much less than petrol-fuelled cars so customers are – for the time being – losing out when it comes to selling or upgrading. Time for change The BMW i3 and the Tesla Model X represent the next generation of EVs, incorporating luxury design, and proprietary gismos built for the EV, rather than adapting existing cars by shoehorning electricity packs into them. Options are expanding for EV owners too. Two door, saloon, seven-seater and mini-van options are set to expand the range and reach of the EV. Manufacturers are building cars from the ground up. For the fleet manager being battered by ever increasing fuel prices and becoming increasing concerned about carbon costs, EVs tick important boxes. E-mobility is not a one size fits all solution, it’s about selecting a vehicle that will do the job. A corporate customer will accept no compromises.

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Source: IEA GLOBAL EV OUTLOOK, April 2013

smart mobility management - n°12 I 14

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The future for fleet customers is about integrated, interconnected and diverse powertrains – and EVs have a big role to play in the mix. The question is whether the finances are convincing enough for corporates to get in and drive EVs away in the numbers needed to make electric mobility a business as usual practice or a novel, nice to have, side line. Alistair Millar

INTERVIEW

PSA Peugeot Citroën

Intelligent car sharing for companies Carolin Reichert has been responsible for Mobility within PSA at international level since 2011. Prior to her assignment in Paris, the graduate business information specialist’s employment history included the prestigious management consultancy Roland Berger, where she looked after more than 20 clients. Other career stopovers were Infineon Technologies and the energy giant RWE, where she was deeply involved with electro-mobility and renewable energies. Carolin Reichert, Head of Mobility Peugeot Citroën Automobiles

The evolving mobility behavior of people and companies is also changing the vehicle market. One of the trends is a move away from car ownership to car sharing. Economic, responsible vehicle use, coupled with an increasing shortage of space in the urban environment, is causing a rethink – in companies as well. Mrs Carolin Reichert, Head of Mobility Peugeot Citroën Automobiles, reveals how the French vehicle manufacturer PSA is confronting these changes. Will people in future still buy cars at all? Carolin Reichert: This is an absolutely critical development for us but the same goes for all manufacturers. We are factoring this trend into our strategic considerations, especially in the mature markets of Europe and in large cities. But one shouldn’t overdramatise. Customer behaviour is not changing overnight and we have the opportunity to respond appropriately. Each development also comes with opportunities. What is the strategy of PSA concerning mobility, and car sharing in particular? Carolin Reichert: PSA Peugeot Citroën will certainly be extending its offering in the mobility arena. We are very innovative in this respect. That applies both to the private customer segment and to business customers. Ultimately, however, the economic models have to be viable. One model we consider to be very promising is intracompany car sharing. In collaboration with SIXT we have just launched a new product in this market, at first in Germany. It is called SHARE YOUR FLEET and is pitched at medium-sized and large companies. This car sharing solution comprises vehicles equipped with car sharing technology, the reservation platform for company employees, a fleet management tool, and all the necessary services. The company procures the vehicles on a leasing basis, namely for 24-36 months at an all-inclusive price that is somewhat higher than the normal lease payment. And it saves a lot of money: it saves on taxi and local public transport costs, and offers the opportunity to rent out the vehicles to one’s employees, for example in the evenings or at weekends. The company can achieve economies of approximately 25% from this type of refinancing.

Which car-sharing-ready vehicles does Peugeot and Citroën offer, and what is the advantage compared with a retrofit solution? Carolin Reichert: We offer all vehicle categories with car sharing technology ex works, from compact cars to commercial vehicles, through saloons, SUVs and minivans. The benefits are obvious: the car sharing unit, including the RFID card reader, is integral to the vehicle warranty and meets a vehicle manufacturers’ high safety standards. This is very important as these devices communicate with the vehicle’s “electric brain”, the so-called CANBUS, and the safety aspect should not be underestimated by any means. Previously this was not an issue as car sharing still existed in a grey area, on a small scale. Now that car sharing has to become fit for the mass market, the situation and requirements have changed. Aren’t you afraid that with this system you are going to be competing with your own customers, the leasing companies? Carolin Reichert: No, not at all. We are amenable to marketing the pre-equipped vehicles to leasing companies or other mobility operators as well. Our system can be integrated with any software at very little cost and can also be integrated into other vehicle brands – even if I am reluctant to say so. But B2B is a multi-brand business.

“SHARE YOUR FLEET can help a company achieve economies of approximately 25% on employee transport costs,” states Carolin Reichert.

smart mobility management - n°12 I 15

FOCUS

E-Mobility

Are we about to get charged up? What’s that sound? That’s the laughter of EV and PEHV drivers charging up their cars. With prices at the pumps at record levels the cost of fuel is a constant headache for corporates. Switching to an EV or PEHV could ease the financial pain, but e-mobility has its own pinch points. Recharging, range anxiety and residual values are the three R’s that will make or break the journey towards electric avenue.

ull up, plug in and charge your EV (or PHEV) for free. That’s the deal in many cities across Europe today. To incentivise the purchase of e-vehicles governments, public administrations and, to some extent, private operators are providing the juice your electric car needs for free. It may take longer to power up your car than at the petrol pump, but in half an hour your battery will be boosted from 0 to 80% at no cost.

and 46,000 slow-charge points in the 15 countries of the Electric Vehicles Initiative (EVI), which represent 90% of global EV stock.

There’s no such thing as a free lunch however. When or perhaps if e-mobility goes mainstream free public charging facilities will disappear. Instead they will become the new ‘petrol’ stations, providing a healthy return for investors who took a punt on them in the first place.

Europe also announced targets to lift the introduction of charging networks to the level of the most active member states (Germany, the Netherlands, Spain, Austria and the UK) and beyond.

Recharging For the moment though, drivers of e-vehicles are laughing all the way to the bank when fuelling their vehicles. That is, if they can find a public charging facility. The lack of charging facilities is where the limitations of e-vehicles start to appear, and where purchasers’ fears about them come bubbling to the surface. It’s the relative rarity of charging points that enhances fears about range anxiety, an endemic that seems to plague the e-mobility marketplace. In 2012, there were a total of 1,900 fast-charge points

smart mobility management - n°12 I 16

For the moment that’s far too few for the grand ambitions that surround EV adoption. Action though is being taken. In January 2013, the European Commission mandated a standard plug for all charging stations in the EU, ensuring compatibility across networks and borders.

New world of e-mobility infrastructure By 2020 there should be 8 million charging points across the EU, 10% of which should be publicly accessible. The European Commission has also imposed on each member state the obligation to adopt a national policy for alternative fuels and their infrastructure, which must include incentives for buying vehicles and building infrastructure. Creating that Europe-wide charging network could cost up to €8 billion - but it may prove exactly the shot in the arm that the EV sector needs. The Dutch government this summer announced it would install 201 fast-charging stations at service stations on ring roads and other

traffic nodes across the Netherlands, ensuring that by 2015 16 million Dutch citizens will live within 50 km of such a station. Range anxiety The availability of re-charging facilities, the time it takes to re-charge the battery and range anxiety come together to create a big ball of fear about the practicalities of EV. Yet are these 3 interlinked fears rational or irrational? Yes and no. Take a look at the headlines. Today’s typical pure EV can cover a distance

«Remember darling, before you go to bed tonight feed the cat, set the alarm and plug the car in.»

rather than use public charging facilities. Charging from a standard AC source in the home can take up to 8 hours though, which is a long time for a car to be out of action. It is, but pause for a moment. Humans have to sleep. We should be doing that for about 8 hours a day. Automakers are partnering with energy providers across the EU to provide power charging at homes, with an AC charging facility being part of the package when purchasing an EV. There is a new relationship in the supply chain springing up.

EV trials found that 85% of electric motorists charge up at home and/or at work, rather than use public charging facilities.

ranging from 80 – 150 km without recharging. This at first glance appears more than enough for commuting and trips into town. The research seems to back this up. The EU has found that 80% of European motorists drive less than 100 km per day (in the UK the figure is just 40 km). It’s not so clear cut though once you start to dig into the detail. The electric battery range not only varies depending on the car, but also on the speed, driving style, the type of road and the tempera-

ture of the cabin. The battery doesn’t like the cold and the extra strain of winter driving reduces the range substantially too. Consumers also worry about the life of the battery. We are yet to experience the results in the real world. Before the fear takes over and we run back to the comfort of the ICE, there seems to be a collective amnesia that it is possible to boost the battery from plug sockets in our homes. EV trials found that 85% of electric motorists charge up at home and/or at work,

It seems that it is not just the EV that needs to be plugged in; we perhaps need to plug ourselves in and change mindsets. The public network can be seen primarily as a way to combat range anxiety, to be used for the occasional top-up, rather than as a tool that is as crucial to e-mobility as the petrol station is for ‘fossil’ mobility. In households across Europe, the phrase, “Remember darling before you go to bed tonight to feed the cat, set the alarm and plug the car in”, is set to ring out. Workplace and e-mobility We work at least 8 hours a day too. This makes the workplace a convenient location to install charging points - especially for a company looking to promote its corporate e-mobility credentials. Fleet managers can help their company meet environmental benchmarks and lower their exposure to fiscal measures designed to discourage fossil fuels by pushing for charge points at work. A select group of companies like ChargeMaster, Pod Point and APT Technologies have sprung up, dedicated to installing

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E-Mobility

of the impact of EV purchase subsidies led by CAP Consulting, the consulting arm of CAP Automotive, found that subsidies for new electric vehicle purchase serve only to reduce second hand values and are posing a threat to the viability of the future EV market. There is already a cautious market for second hand EVs. According to CAP EVs typically depreciate around twice as heavily as a conventional car, such as a Volkswagen Golf or Ford Focus. The new report however found that values are being forced down even further by government subsidy.

European Commission mandated a standard plug for all charging stations in the EU, ensuring compatibility across networks and borders

charging points at the workplace. Companies teaching their employees about the practicality of e-mobility may prove a crucial step in the wider uptake of the technology. No wonder then that governments are keen to help. The Scottish government, for example, subsidises workplace charging points. Total Cost of Ownership As recharging a battery will likely set you back less than €5 with costs depending on the battery’s capacity and the cost of electricity – its starts to sound like the good old days when motoring was cheap. It almost sounds too good to be true. The cost of e-motoring by the mile is pleasing, but it’s the upfront costs that make for uncomfortable reading. It is a fact that electric vehicles remain significantly more expensive to buy than their fossil fuel counterparts. This is where the Total Cost of Ownership calculation comes into its own, and why it is essential that the business case for e-mobility is fully explored before investment decisions are taken. The total cost of ownership calculation will ensure that the cheaper day to day running costs associated with e-mobility are accounted for, along with company or driver tax savings. When these costs are built into the equation the hefty upfront price tag, which can cause potential purchasers to run for the hills, starts to look a little more realistic. The entry price for e-mobility has been the principle pinch-point in EV adoption, hence the swathes of government subsidies and incentives that have been deployed by member states across the EU to encourage corporate and private purchasing. Residual values Government subsidies for e-mobility though may not be helping the market in the short or long term. A pan-European study

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CAP Consulting analysed the used market performance of the Nissan Leaf in the UK, Germany, France and Italy to compare values in countries with and without a purchase incentive subsidy. It found a direct correlation between stronger used values in Germany and Italy – where there are no plug-in car grants – and weaker values in the UK and France, where new car purchases are subsidised by the government. They also identify that France, as the country with the highest subsidy, also sees the lowest used values for the Leaf. Report author Mark Norman commented, “Our analysis of used market values across markets with and without a subsidy clearly shows that grants are ineffective as a means of reducing ownership costs and, worse still, their inevitable eventual removal will cost new EV owners thousands in additional depreciation.” Given the impacts CAP believes that economic argument for buying a Nissan Leaf is all but impossible. A sobering view, but the report is not arguing against EV per se. It goes on to suggest that investment to encourage take up would be better directed at ‘in life’ benefits including free parking, permission to use bus and multi-occupancy lanes and exemption from many city centre driving restrictions. Norway, which has achieved Europe’ largest penetration of electric vehicles, is held up in the report as an example of how to EV adoption can be incentivised. Horses for courses The future is about customisation and personalisation. Needs are identified, the markets are reviewed and then the best possible solution are sourced, tailored to needs of the individual. In corporate mobility it’s the same. Different types of vehicles are purchased to fulfill different types of functions. It’s the same with powertrains. The ICE will continue to lead the charge in the interim, but EV and PHEV are emerging as the successful candidate in more and more scenarios. It’s horses for courses. The opportunity in corporate fleets is sourcing the powertrain that fits the bill. Frank Jacobs and Jonathan Green

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Powertrain options

Looking at the E-Options With electric mobility (e-mobility for short) rapidly transforming from an unworkable utopia into an affordable alternative, it may be hard to admit that you skipped the first class and are finding it difficult to catch up. Don’t worry, this crash course will teach the basics.

or a century the Internal Combustion Engine (ICE) has dominated the market. The benefits of the ICE, from price to reliability, have forced the electric motor to freeze on the spot. In the past the ICEs position on the podium as the powertrain of choice was never in doubt. That is until now. Our attitude towards the humble electric motor is warming. It’s time you got to know your ICE from your HV, BEV and PHEV. ICE Internal Combustion Engine (ICE) vehicles run on fossil fuels like gasoline and diesel, or other liquid fuels like ethanol or biodiesel. Energy security and the rising costs of fuel, alongside emissions of particulate pollution and climate warming gases, are the principle reasons why ICE engines are facing competition from cheaper, cleaner and greener sources of e-mobility. HV Hybrid Vehicles (HVs) are powered by a mix of two energy systems - typically a battery and an ICE. HV have been made famous by the fabled Toyota Prius, which celebrated sales of 3 million this June. The electricity to charge a HV’s battery is generated by regenerative braking. This provides a secondary power source to the vehicle. HVs typically travel under 5 miles on battery power alone. BEV Battery-powered Electric Vehicles (BEVs) use a battery for their energy supply. This replaces the fuel tank and ICE, which means there’s no exhaust pipe either. The B is often dropped too, with EV used as a common abbreviation. The typical range for an EV is between 60 and 120 miles, though some travel significantly further. The Tesla Model S, for example, has a range of 310 miles. EVs produce no tailpipe emissions, though charging the battery will depending on the source of energy used. BEVs are recharged by being plugged into the electricity grid. The fastest charge is via Direct Current Charging (DC) which typically provides 80% of battery power in 30 minutes. Public authorities and private operators are investing in DC charging networks, but coverage, for the moment, is sparse. Because of the lack of coverage DC charging is free in the majority of cases, but don’t bank on this remaining the case as EV rise in popularity.

The Toyota Prius the granddaddy of e-mobility celebrated sales of 3 million this June.

«Our attitude towards the humble electric motor is warming. It’s time you got to know your ICE from your HV, BEV and PHEV.» AC Charging, using plug sockets at home is a second option. A full charge is delivered to the battery in 10 - 12 hours. Some OEM’s are partnering with energy suppliers to offer a third way called fast AC charging. This can give up to 80% charge in less than 3 hours. PHEV Like HVs Plug-in Hybrid-Electric Vehicles (PHEVs) have two energy systems. In the PHEV the battery component is the primary power source, with an ICE providing back up power if the battery runs out of charge. As you would expect the range on all electric mode varies. The Volvo V60 will travel up to 31 miles on battery power alone, before the ICE kicks in. BMW states that the new eagerly awaited BMWi3 will have a real world range of 80 – 100 miles on battery power, before the ICE range extender kicks in making 150-186 miles possible. The battery for PHEV is recharged by plugging in to the grid, as with BEVs. Frank Jacobs

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Member States Incentives

Motoring to E-Mobility With more electric vehicles on the market than ever before all that is needed now are the customers. We take a quick look at the incentives EU Member States are offering to encourage greater EV uptake.

«To achieve EV targets more buyers are urgently needed.» France Over 12,000 EVs have been registered in France since January 2010. France targets 2 million EVs by 2020. Until July 31, 2012, a premium was granted of up to €5,000 for the purchase of new cars with CO2 emissions of 60 g/km or less, which also benefited electric vehicles. From August 1, 2012, the bonus has increased up to €7,000, but capped at 30% of the vehicle price including VAT. The subsidy includes any battery leasing charges. The French government has provided over €450 million in rebates.

A €42-million EU program to foster partnerships between industry, utilities, manufacturers, local authorities and research institutions is spearheading the drive to mainstream EVs like the Peugeot Ion, pictured here.

he Green eMotion Initiative, a €42-million EU program to foster partnerships between industry, utilities, manufacturers, local authorities and research institutions is spearheading the drive to mainstream EVs.

E-MOBILITY GRANTS AND GOALS In an attempt to entice buyers to go all electric members states are offering grants and a range of other incentives to would be customers. Here’s what’s on offer, country by country. Germany Almost 8000 EVs were sold from the start of 2010 to the end of 2012. Germany strives for a fleet of 1 million by 2020, a figure recently described by policy makers as unrealistic. The adjusted figure - 200,000 by 2020 - still represents a major shift. EVs in Europe’s automotive heartland are exempt from road tax for the first five years, but no subsidy for private or corporate customers is on offer. Since company cars are taxed at 1% per month of their gross list price, the generally more expensive EVs were at a disadvantage. A law backdated to 1 January 2013 offsets this by allowing a deduction relative to the battery size (with a maximum of €10,000 for a 20 kWh battery).

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UK A Plug-In Car Grant provides a 25% grant up to £5,000 for public and private customers. Since its launch in 2011 the scheme has helped to sell 5,000 EVs, almost half of which were in the first 8 months of 2013. If the UK is to meet its targets 1.7 million EVs need to be sold by 2020. Netherlands There are no direct purchase subsidies, but EVs are exempt from registration fees and road taxes, saving a private car owner over €5,000 over 4 years, and a corporate owner €19,000 over 5 years. At the end of August 2013, there were 11,000 EVs registered in the Netherlands. EV registrations numbered nearly 1% of all new cars registered in 2012. Belgium An incentive of 30% off EV purchase price in income tax deduction (with a maximum of €9,190) ended on 1 January 2013. Just over 1,000 EVs on the road in October 2012, with two thirds of these in corporate fleets. Spain A €72 million national fund provides a subsidy of up to 25%, up to a maximum of €6,000. Many regional governments top this up with tax incentives of their own. In 2011 and 2012 about 900 EVs were sold in Spain. Frank Jacobs

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E-Mobility

On Show There have been a number of false dawns for electric mobility, but if the halls of the IAA in Frankfurt were anything to go by the future is electric. With a widening array of e-mobility models on display there are more opportunities than ever to engage in e-mobility. It’s an exciting time to be cruising down electric avenue.

he hardy and trusty internal combustion engine (ICE) has faced down the challenge of the electric motor time and time again. Over the years the ICE hasn’t had to fight too hard, but that was in the past. Our attitude towards the humble electric motor is beginning to warm. The cost of fuel, energy security, climate change, urban pollution and advancements in technology are changing the playing field for electrification. Perhaps we are now living in, rather than talking about, the tipping point for electrification in the automotive sector. A few weeks before the IAA the Renault-Nissan alliance announced that they had sold 100,000 zero emission cars, whilst growth partnership Frost and Sullivan research predicted that electric vehicle sales in 2013 would increase by 50% on 2012 figures, with sales around the 170 – 190,000 mark. By 2018 it predicts that sales of electric vehicle units will reach 2.7 million units. Navigant Research is more optimistic. It predicts worldwide sales of light duty hybrid and plug-in electric vehicles will reach 6.6 million units annually in 2020, representing almost 7 percent of the total light duty vehicle market. “Electric vehicles, including plug-in models, are becoming an increasingly important part of the global automotive market,” says Dave Hurst, principal research analyst with Navigant Research. “This growth is being driven not only by the inherent appeal of the vehicles, but also by consumer demand for vehicles that cost less to operate than traditional internal combustion engine vehicles, government incentives, and a rebounding economic climate. The cost of battery packs, which can account for as much as half of PEV costs, will continue to decrease significantly during the forecast period, according to the report. Hybrids and PHEVs are anticipated to see a 10 percent and 26 percent decline in battery pack costs by 2020, respectively, while BEVs will likely remain flat, but see improvements in vehicle range and performance during the same period. The ICE is not the only way any more and the future is about to all get mixed up. For the corporate buyer the future will revolve around identifying not just the vehicles, but the powertrain mix that is fit for purpose. Over the next few pages you’ll find the makes and models that are turning heads on the e-mobility catwalk. Jonathan Green

Nissan Leaf 71,000 have hit the roads the world over making the Nissan Leaf the world’s best selling electric vehicle. Between them they have chalked up around a billion miles; saving on 53 million litres of oil and 124 million kg of CO2. Launched in December 2010 in Japan and the United States, Nissan Leaf came to Europe in 2011 and immediately scooped the prestigious 2011 European Car of the Year award. It has also bagged the 2011 World Car of the Year award, and the 2011-12 Japanese Car of the Year award. An international hit, there’s been a decent spread of Leaf sales the world over. Recent figures show over 30,000 sales in the US, 28,000 in Japan and 12,000 in Europe. The Leaf’s potential, sales, and profile has been boosted by municipal bodies in much of Europe which have deployed the car on the front line. Law enforcement, firefighters and medics in Portulgal, Scotland, England, France and Switzerland lessening emissions and easing the strain on the budget by rotating the Leaf into their fleet. It has also been incorporated into New York’s taxi system.

Powertrain – Electric NEDC range – circa 200 km “In 2007 I pledged that – by 2010 – Nissan would mass market a zero-emission vehicle. Today, the Nissan Leaf is the best-selling electric vehicle in history. Now I am committing to be ready to introduce a new ground-breaking technology, Autonomous Drive, by 2020, and we are on track to realize it.” Nissan CEO Carlos Ghosn

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E-Mobility

BMWi3

TESLA MODEL S

After at least three years and €2 billion, BMW’s contribution to the EV market was unveiled at September’s Frankfurt Motor Show in the shape of their i3: a sizeable three-door, four-seater, high-spec hatchback; built from the ground up.

Servicing the luxury end doesn’t start and stop with BMW though, EV veteran Tesla isn’t about to give away its business to a fancy newcomer. Their high-end Model S (“the world’s first premium electric sedan”) has been on sale for over a year.

Part of BMW’s i-Brand, the car is being built on a dedicated production line and is set to start shipping in November. The German auto-specialists have sights set on upgrading the EV market as a whole by packing luxury features and bespoke applications into the range. With i3, multi-media applications will enhance efficiency and network the car with other road users and public transport. At its unveiling, BMW Group Herbert Diess said: “The i3 is only the first of a range of car that we will offer under the BMW i brand. Next year we will also have the plug-in hybrid i8 - a sportscar of the future.” They might be a little late to the EV party, but with i3 and the i8 BMW is balancing timing with game-changing ambition.

Tesla might have started life as a funded test-ground, but if anyone is capable of cornering luxury users, it’s the company with more market share in its native California than Buick, Fiat, Land Rover, Lincoln or Mitsubishi. As ever, Tesla isn’t just thinking car, they’re thinking infrastructure and have partnered with the charging infrastructure specialists The New Motion to give customers more options, availability, concessions and better service in charging; particularly in New Motion’s native Netherlands. Potential EV drivers still concerned about efficiency will be heartened to hear that the 85 kW version of the Telsa Model S can cover approximately 500 km on a single charge – surpassing all rivals hands down. It also won the World Green Car award 2013. Impressive.

Powertrain - Electric (optional range extender) NEDC range – 130-160 km on electric power with a boost of additional 160km from the 9 litre two-cylinder 650cc petrol generator which the i3 uses to extend its range. “Global developments such as climate change, dwindling resources and increasing urbanisation call for fresh solutions. BMW i is finding those solutions. The brand stands for visionary vehicle concepts, inspiring design and a new understanding of premium that is strongly defined by sustainability.” Press Release, BMW

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Powertrain – Electric NEDC range – 385 – 500 km (depending on battery selected by owner) “Tesla’s goal is to accelerate the world’s transition to electric mobility.” Tesla ‘About Us’

Volkswagen Golf

Volvo V60 Plug in Hybrid

Frankfurt 2013 hosted the world premier of Volkswagen’s mass-production e-Golf, which it reckons will be a leading light in efficiency; costing the driver €3.30 to travel 100km. The front-wheel drive e-Golf reaches 100 km/h in 10.4 seconds and is capable of reaching 140 km/h. VW reckons it’ll last 190km per charge. By electrifying its icon in 2014 Volkswagen is showing that it is serious about e-mobility.

One of the cars Tesla Model S trumped to win the World Green Car 2013 award was the Volvo V60 plug-in Hybrid, but you’d write-off the Swedes at your peril.

What Volkswagen is doing is taking the fossil fuel-based recipe (don’t forget they’re Europe’s most successful car-maker) and electrifying it almost verbatim. The plan is to import the same lauded usability and practicality of the VW brand, and switch it onto electric.

Earlier this year, the first batch of Volvo’s hybrid never saw the inside of a showroom – it was sold out long in advance. Its popularity is, in part, due to receiving the highest ever score for an electrified car in the 2012 Euro NCAP listing. The fivestar rating was awarded, amongst other things, on the basis of the car’s safety features (we wouldn’t expect less from Volvo). Volvo’s V60 Plug-in Hybrid allows the driver to select the preferred driving mode via three buttons: Pure, Hybrid or Power. Pure offers up to 50 kilometres (31 miles) on pure electric power. Hybrid consumes fuel at just 1.8 l/100 km – translating into 130 mpg – and carbon dioxide emissions are 48 g/km.

Powertrain – Electric NEDC range – 190 km “The electric car cannot be a compromise on wheels, it must convince customers in every respect.” Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft’s, Volkswagen

Plug in Electric Hybrid All electric range – up to 50 km Hybrid Range – up to 900 km “...a unique car, superior to all other hybrids on the market.” Peter Mertens, Senior Vice President Research and Development at Volvo Car Group

Renault Twizy

Ford Focus Electric

Powertrain – Electric NEDC range – 190 km “A totally different way to approach the city”. Renault

Powertrain – Electric NEDC range – 160 km “Ford have now electrified one of the best-selling cars in Britain.” Ford spokesperson

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E-Mobility

RENAULT ZOE

TOYOTA PRIUS PLUG IN HYBRID

One half of the world’s best-selling EV team, Renault produced a production-ready Zoe in 2012 and started shipping in December of that year. A five-door hatchback likened to an “elongated Clio”, the all-electric Zoe won in the ‘Development’ category, at the ‘BusinessCar Fleet Technology Awards’ which recognises technological innovation in the corporate marketplace.

Arguably where it all started, the Prius is the granddaddy of e-mobility. Since going global in 2000, the various incarnations of the Prius have reached sales of 3 million. But early dominance and setting that standard doesn’t mean the Japanese car giant can rest on its laurels. Innovation is still the name of the game as more and more manufacturers try to muscle in on their turf.

Zoe has a tablet computer embedded in the dashboard – with steering-wheel-mounted controls and voice recognition – offering a window to the world for the corporate user via emails, info and tweets. Judges were impressed by the number of “world firsts” packed into Zoe – which includes 60 patent designs – dedicated to user-friendliness, range and connectivity. Zoe can go over 200 km (130 miles) on one charge; considerably more than the range of other all-electric cars on the market.

In Europe, Prius has put big money into the charging infrastructure in Germany in conjunction with partners the Mobility House. They’ve also caught on to mobility mix and partnered with car-sharing ventures across Europe. In September a deal was struck whereby rail seasoncard holders in England’s south would have smartcard access to a Prius for the last leg of their journey. The car is also aiding trials of wireless charge technology. Toyota’s Japanese friends over at Nintendo know only too well that innovation in industry doesn’t guarantee lifelong success – it’s keep up or shut up. But Toyota still sells well in an increasingly crowded marketplace.

Powertrain - Electric NEDC Range – 210 km “The Renault ZOE demonstrates the great potential of electric mobility.” Xavier Pujol, Head of Continental’s Hybrid Electric Vehicle (HEV) Business Unit.

Powertrain – Available in Plug in Hybrid and Hybrid Plug in Hybrid has an all electric range of 25 km “The original hybrid car” Toyota

VW e-UP NISSAN NV E200 With the world’s best-selling EV on their CV you’d forgive Nissan for resting on their laurels, but if Leaf is the car for the present, the e-NV200 could be the van for the future.

Powertrain – Electric

NEDC range – 160 km

“The Volkswagen e-up! sets new and unusual benchmarks” Volkswagen

“London will have a new icon” Nissan VP Andy Palmer

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iOn – Peugeot

Mercedes – s500 plug in hybrid

Peugeot’s first electric car (and strikingly similar to the MIEV) launched in 2011. It’s a very competent EV built for the city; capable of a modest 100km per charge. But, depending on your location, there are some very smart concessions to owning or renting one of these runarounds.

This hybrid joins the S400 and S300 BlueTEC in Merc’s S-Class hybrid range but, so say Mercedes, has ten times the storage capacity. The S500 asks the driver to pick from four hybrid operating modes: normal hybrid, electric power only, electric power save and driving charging modes. Although the greenists won’t favour a 30 mile maximum distance on the electric power setting, the car boasts the precision and power we expect from Mercedes, including engine deactivation when the vehicle is coasting, an anticipatory energy management system, roaring acceleration and an impressive top speed. It’s available next September.

Powertrain – Electric NEDC Range – 100 km “An award-winning, fuel-efficient electric car. Economical, smooth, effortless driving with low emissions. Redefining electric vehicles.” Peugeot

Plug in Electric Hybrid All electric range – up to 30 km Find out more – http://www5.mercedes-benz.com/

Opel Ampera Opel has been quietly racking up accolades for its e-car the Ampera, including Best Overall Concept at the 2013 eCar awards. The car’s range-extender concept – and a new lower price of 38,300 euros– is winning over EV sceptics. The Ampera can rack up between 40 and 80 km on the electric setting before switching to a backup mode where power is routed to the electric drive unit from a generator driven by a gasoline engine. This enables a total driving range of more than 500 kilometers without the need to refuel; allaying fears over recharging.

“Intelligent Hybrid” Mercedes

Renault Kangoo Van Renault has only recently taken the wraps off a new-look Kangoo Van ZE (Zero Emission) which, at September’s IAA in Frankfurt, celebrated sales number 10,000 since its launch at the end of 2011. In 2012 Kangoo scooped the prestigious International Van of The Year award and, in its short life, has leapfrogged other EVs servicing small businesses; become Europe’s best-selling small electric van. It’s actually France’s biggest selling EV overall with over 6,000 sales.

Plug in Electric Hybrid NEDC Range – 160 km

Powertrain – Electric

With Range Extender – 500 km

NEDC Range – 170 km

“The bold new face of electric mobility” Opel

“The perfect partners for professionals. Just as reliable, just as practical and just as functional” Renault

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CASE STUDIES

Fruit 4 London

Switching to electric vehicles Caroline Watson from the Energy Saving Trust in England explains why whole life costing matters when sourcing electric vehicles and how the Trust’s Plugged in Fleet Initiative is helping organisations realise the benefits of electric mobility.

Caroline Watson, Knowledge Manager, Energy Saving Trust

PLUGGED-IN FLEETS INITIATIVE 100

ow would you like to save money, reduce your impact on the environment and create some good PR all in one go? Organisations such as City of York Council, Fruit 4 London and Urban Planters have found a common solution to achieving all three. They are just three examples of fleets that are now running electric vehicles. Creating the business case for EV How do you know if electric vehicles are right for you? The best approach is to consider the whole life costs. Although an electric car or van generally has a higher upfront purchase cost depending on usage there may be savings to be had over the vehicle’s lifetime. As much as we all want to be green, in this economic climate the most important thing is the bottom line. Analysis by the Energy Saving Trust (EST) through the Plugged-in Fleets Initiative (PIFI) shows that cashable savings are signifi-

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cant and achievable. One PIFI client, Fruit 4 London is saving £9000 per vehicle over 3 years by running electric Renault Kangoo ZEs compared to the diesel equivalent. Calculating whole life costs Fruit 4 London took advantage of the government’s Plug-in Vehicle Grant (up to £8000 off the cost of a new electric van), the 100% Congestion Charge discount in London, road tax savings of £215 per year (zero emission vehicles pay no vehicle excise duty) and additional fuel savings. Add into the equation that the cost of running a vehicle on electricity is approximately a quarter of the cost of fuelling a vehicle on diesel, and the business case starts to build. Electric vehicles also offer insurance against future fuel cost rises, which in the UK have increased by 19% over the last three years.

What is it? EST will provide a tailored review of your fleet to determine if electric vehicles can save you money, meet your day to day business needs, and reduce your impact on the environment. Do we qualify? Whether you have company cars, grey fleet, delivery vans – whatever vehicles you operate (under 3.5 tonnes) then EST can help you discover if EVs are for you. No limit on fleet size. Is there a cost? Funded by the Office for Low Emission Vehicles, PIFI 100 is free of charge to participants. How do I apply? 100 places available for public and private sector organisations in England. Places are allocated on a first come first served basis.

Achieving carbon and cost savings For organisations operating outside of London, there’s also an opportunity to benefit from going electric, as experienced by City of York Council. York’s motivation to consider ultra-low emission vehicles was to reduce air pollutants

«Electric vehicles also offer insurance against future fuel cost rises, which in the UK have increased by 19% over the last three years.»

travel sufficient miles per day to make an EV cost effective. It’s important to know annual or monthly mileage and what the fuel savings will be achieved by switching to an EV. If the mileage is less than 10,000 per year it can be difficult to make the costs stack up. But every fleet is different as mileage is just one part of the equation, next to tax incentives, purchase or leasing costs, and government grants.

Fruit 4 London are saving £9000 per vehicle by running electric Renault Kangoo ZEs compared to the diesel equivalent.

and carbon emissions, but the whole life cost analysis completed for them by EST showed that operating an electric pool car over the grey fleet would save them money too. Per mile driven the Nissan Leaf electric car is a penny cheaper to run, so not only is the City of York reducing its environmental impacts, but also saving money. There are other wins too. Taking council staff out of grey fleet (private cars used for business) and into a council owned vehicle is also safer. Derek McCreadie, Low Emission Officer for City of York Council said “From the detailed analysis undertaken by EST, it was clear that we had lots to gain by switching to electric vehicles. EST’s comparison of our existing fleet with new electric vehicles demonstrated what was achievable in terms of lower operational costs and emissions. As a result, we are now eager to run electric vehicles in our fleet and can do so with confidence.” It’s important to look at the whole life costs and understand what the real

financial impact will be. This makes sense for any vehicles being purchased or leased, not just an EV. But when considering electric mobility it is vitally important as the cost savings will result from the use of the vehicle. Overcoming range anxiety and recharging One of the many challenges EST faces when discussing EVs with clients is whether the range of the vehicle is prohibitive. The official range of EV’s is approximately 100 miles depending on the model.

Savings for EV Drivers There are some very significant savings for company car drivers who choose an EV. Whereas, the average company car driver will be paying a 21% company car tax, up until April 2015 pure EV’s are zero rated. After this EV drivers will be taxed at the lowest rate of 5%. For a company car driver in the 20% tax band this is a substantial saving, for someone earning a salary in the 40% tax bracket the benefits increases. For example a company car driver (40% tax payer) who opts for a BMW 1 series would pay £7000 in tax over 4 years. If the same driver opted for a BMW i3 pure electric car, then the company car tax over 4 years would be £1,470. Fuel costs in the BMW 1 series for 6000 miles per annum over 4 year would be £2,700 compared to just £876 for the BMW i3.

This isn’t an issue for Fruit 4 London and Urban Planters who do less than 70 miles per day in their vans. Just as City of York’s electric pool car doesn’t need to do more than multiple short journeys on a typical daily basis. It’s about tailoring EV to business needs.

Tailor made Electric Mobility EV’s don’t work for everyone or all situations. The potential savings on offer however, make it worthwhile finding. To assist fleet managers in England decide whether EV’s are a good investment The Office for Low Emission Vehicles is funding EST’s Plugged in Fleets Initiative.

Monitor mileages However, one challenge that is often overlooked is whether the fleet vehicles

Find out more from Caroline Watson on 0207 227 0310 or pifi@est.org.uk or apply at www.energysavingtrust.org.uk/pifi

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VISION

Urban Mobility 3.0

Collaboration and Digital era underpin

the Future of Urban Mobility

Connectivity was the key theme at this year’s Frost and Sullivan Urban Mobility 3.0 workshop with connected services, car sharing growth, integrated mobility, new retailing channels for cars, urban logistics, fully autonomous vehicles and personal rapid transit up for discussion. Martyn Briggs Programme Manager for Mobility Research, Frost & Sullivan, reviews the day.

arlier this year over 160 attendees gathered to attend Frost & Sullivan’s annual Urban Mobility workshop in London, and hear 40 expert speakers share their vision for the future of urban mobility.

The death of the conventional car With day one a debate style format in London’s Houses of Parliament, senior executives from Daimler, BMW, and Nissan, Passenger Focus and Transport for London discussed “The Death of the conventional car and rise of new urban mobility business models” with parliamentarians, in light of dwindling European car sales set against growing demand for car sharing, public transport, and new digitally enabled mobility products. Having been hosted in the home of UK policy making, the debate proved the perfect cue for the next day’s plenary sessions at Siemen’s Crystal building, a brand new sustainable initiative exploring the future of cities, and connected by London’s newest transportation infrastructure investment, the Emirates airline cable car. Managing mobility in the future Whilst there were several competing views put forward as the best way to address the future of urban mobility, some commonality was drawn across the presenters, with the future role of urbanisation, social preferences, and the emergence of the smartphone all underpinning a new wave of mobility products and services, and leading to significant levels of investment and collaboration across the industry. This will lead to a future transportation network where urban populations move away from ownership model to shared use mobility, including vehicles, parking spaces, and bicycles, with a series of digitally enabled services enabling door to door one stop shop journeys and tickets to provide us with a more integrated mobility network. This change is set against the emergence of electrification and automation across the sector, with sustainable mobility products such as electric vehicles becoming more mainstream in the short term, with fully autonomous

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Connectivity was the key theme at this years Frost and Sullivan Urban Mobility 3.0 workshop.

cars and personal rapid transit systems connecting our urban environments in the longer term. Changing times for mobility Frost & Sullivan Senior Partner Sarwant Singh looked back to 2008 when the idea of vehicle manufacturers creating standalone business units responsible for mobility products seemed an implausible situation, given the potential threats and differentiation from their core business of producing and selling cars.

Frost & Sullivan Senior Partner Sarwant Singh looked back to 2008 when the idea of vehicle manufacturers creating standalone business units responsible for mobility products seemed an implausible situation, given the potential threats and differentiation from their core business of producing and selling cars.

«Daimler Mobility Services CEO, Robert Henrich, boldly claimed that no other world market will witness a shift as big as that which will happen in the mobility market over the coming years.»

FROST AND SULLIVAN VIDEO REPORT Frost & Sullivan’s Urban Mobility workshop and has been summarised in a “Future of Mobility” video report which can be viewed by scanning this code.

have played in facilitating a shift to such products and services, conducting several research and pilot schemes with the end goal of providing an efficient, sustainable transport system for the UK. He warned however that investment levels in new infrastructure need to continue if the infrastructure is to cope with the growing demand for mobility.

Five year’s later, and he welcomed the emergence of new mobility business models - car sharing, parking management, integrated mobility products, and vehicle connectivity & big data in particular – from some of the World’s largest automotive players including Nissan, BMW, and Daimler. He also welcomed the role that the UK’s Technology Strategy Board, Office for Low Emission Vehicles, and Transport for London

The rise of the mobility market Daimler Mobility Services CEO, Robert Henrich, boldly claimed that no other world market will witness a shift as big as that which will happen in the mobility market over the coming years. Henrich’s counterpart panellists, BMW’s VP Business Development for Mobility Services, Dr Markus Schramm, confirmed that the evolution and revolution of mobility will go hand in hand, as companies such as BMW create standalone brands like BMWi. BMWi is screening over 600 new startup investment opportunities to provide a combination of vehicle enabled, vehicle dependent, and vehicle independent mobility services in order to reach the

goal of becoming the world’s leading premium mobility services provider. Nissan’s VP Product Strategy, Etienne Henry, concluded that the car is not dead – but different ways will be developed to keep it exciting, such as electrification and breakthrough technologies, including autonomous driving. Alongside this, Toyota’s VP Product Planning Alan Uyttenhoven stated that in addition to new vehicles, such as their own iRoad mobility concept (set to be used in a car sharing pilot scheme in Grenoble from 2014), there will be a move towards collaboration between mobility providers. Toyota is currently working with the World Business Council for Sustainable Development (WBCSD) and member companies to help quantify the impacts that mobility solutions can bring to urban environments, and support the move towards mobility based solutions. New market opportunities To summarise the emergence of the automotive and several other sectors into new mobility business models, Frost

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VISION

Urban Mobility 3.0

BMW’s VP Business Development for Mobility Services, Dr Markus Schramm, confirmed that the evolution and revolution of mobility will go hand in hand, as companies such as BMW create standalone brands like BMWi.

& Sullivan VP of Consulting Franck Leveque compared the situation to Coca-Cola, who having succeeded in being the top cola selling brand, wanted to dominate the whole beverage sector by producing and acquiring several other brands. Mobility can be considered to be following the same path, as companies no longer want to be constrained to the one dimensional approach of selling a car, or a train/bus ticket for example, but to take a piece of each and every journey made, whether for personal or business travel. Some good early examples of this were demonstrated in the panel hosted by myself addressing integrated mobility, where parkatmyhouse.com CEO Alex Stephany highlighted how peer to peer style rental of parking spaces can improve the end to end customer journey by better matching supply with demand. Also, NS Programme Director Joost Mortier showcased their business card offering which facilitates multi modal travel with a post travel monthly invoice, and adding services such as office space rental or airport lounge use to target business customers; a prime early example of an integrated mobility offering. One market segment that benefits from this integrated approach is that of car sharing and carpooling, as customers move away from car ownership and towards shared mobility, only using a car when it’s required, and removing the hassles of insurance, maintenance and fuel for example; a market Frost & Sullivan forecast to grow from around 2.3m members in 2012 to over 26m globally in 2013. This position of integrated mobility was very much championed by Zipcar’s UK General Manager, Mark Walker, who highlighted how Zipcar are targeting major transport hubs (such as airports) as a key growth opportunity as people look to interchange with temporary access to a shared vehicle. Engaging markets in mobility BMW’s Head of Mobility Services Marketing & Sales, Tony Douglas, outlined that even in Berlin, a market often considered saturated due to the several large car sharing operators and where BMW’s DriveNow solution “competes” against Daimler’s Car2go, a recent Frost & Sullivan survey outlined that only 20% of the local population are aware of car sharing.

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SMART MOBILITY VIDEO REPORT Martyn Briggs reviews the rise of e-mobility at the IAA in Frankfurt. To view the video scan this code.

Douglas outlined that DriveNow adds between 8,000 – 10,000 new customers per month in Berlin alone, and highlighted that as awareness increases so will the uptake. Therefore, the market for car sharing was not deemed as competitively threatening; the more companies entering this market actually helps to strengthen and increase local awareness, and complement other car sharing businesses, as residents are often members of more than one service. One final best practice for car sharing operators to consider is the corporate market; Eva Helmeth, Head of Sales & Consulting at Swiss car sharing firm Mobility International, confirmed that whilst business customers currently only account for 3% of their members, they generate 25% of the revenues. Clearly this will be a target of all car sharing companies in future. Joining up the infrastructure As we look to the future, our mobility infrastructure is set to become far more connected. Mira’s Commercial Manager, Chris Reeves, stated that as vehicles, infrastructure, railways and other services start to become connected to one another, the prospect of door to door journeys becomes simpler to deliver. Valeo’s Product Marketing Director, Derek De Bono, showed how their research confirms as vehicles become more automated, passengers will be able to not only email and send messages, but to eat, sleep, read books and watch movies safely in the future. To conclude, the one theme running through this year’s Urban Mobility 3.0 workshop was that connectivity is enabling growth across all segments, whether in the vehicle through connected services, car sharing growth, integrated mobility, new retailing channels for cars, urban logistics, and indeed fully autonomous vehicles and personal rapid transit. This is changing the dynamic of the industry like never before, providing several opportunities and enticing investment from several industries within and externally to transportation services, such as internet aggregators. The team at Frost and Sullivan looks is looking forward Urban Mobility 2014 and exploring the future with you. Martyn Briggs

BUSINESS SOLUTIONS

LeasePlan

In the Mobility Mixx LeasePlan conceived the Mobility Mixx concept ten years ago to cater for the changing transport needs of employees and has just been awarded a contract by the Netherlands Government. The aim is to accommodate the diverse dayto-day behaviours of business travellers and provide mobility solutions that offer best value.

The Mobility Mixx approach puts more autonomy – and accountability – back in the hands of travellers via their provision of mobility budgets.

“E

mployers are looking for mobility providers who can offer multi-modal mobility solutions”, says Paul Wessels, Managing Director Mobility Mixx. Mobility Mixx is one company that offers these solutions, seeking to put an end to all individual claim handling and giving employers muchneeded insight into travel behaviour and its costs. According to Wessels, the three main tenets of the Mobility Mixx approach are: convenience for the traveller; control over and the ability to reduce the cost of mobility; and flexibility and sustainable operations. If these are the problems that need to be solved, the antidote that Mobility Mixx provides has seen the company gain a very strong position in their home market of the Netherlands. Mobility Mixx recently secured a contract with the state to provide all Dutch government employees with a mobility card. This will increase the numbers of employees in the Netherlands carrying the Mobility Mixx card in their wallets to 150,000 in 2014. A huge contract in terms of employee numbers and prestige, it builds on the platform that Mobility Mixx has developed for a client base that increases values mobility. But what does the Mobility Card allow the user to do? This chipcard enables employees to travel seamlessly, without the need for cash, in the manner that suits them best. For example they can use the card for train, bus, metro, taxi, rental bikes, rental cars, parking and corporate carsharing. There’s a green hue around Mobility Mixx’s business, but as MD Paul Wessels explains, “Taxis and bike rental should be seen as products supporting the business model without delivering a high contribution. Next to public transportation, corporate car sharing is the second largest contributor to the business model.” Making mobility budgets simple The Mobility Mixx approach puts more autonomy – and accountability – back in the hands of travellers via their provision of mobility budgets. A mobility budget allows employees to use their budget for travel as they see fit. They can decide to use a rental or pool car, claim kilometres for the use of their private car or travel by train or taxi. The travel costs that the employee incurs for his mobility use are written off the gross budget in a fiscal friendly way. Paul Wessels

«The three main tenets of the Mobility Mixx approach are: convenience for the traveller; control over and the ability to reduce the cost of mobility; and flexibility and sustainable operations.» sees the company as a “mobility integrator”, delivering a one-card-fits-all solution that grants the traveller access to a diverse range of transport platforms tailored to a trip. Time for growth And Mobility Mixx is ambitious. Plans to expand geographically, develop and add to the product mix are already underway via pilot schemes. For now the focus is in the Netherlands, but, as Wessels says, “we are developing all the time.” Alistair Millar

Corporate car sharing: cars are made available to employees at company locations. Employees reserve a car via the Mobility Mixx website or call centre. With the Mobility Card they can open the car and Mobility Mixx takes ownership for checking, maintaining, repairing and cleaning the cars; meaning it is simple for the employer to manage and employee to use.

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CASE STUDIES

GSK

Carpooling suits us GlaxoSmithKline, one of the world’s largest pharmaceutical companies, has been taking a closer look at how its employees move about and the steps that can be taken to support business and employee mobility. Tim Harrup found out what has been prescribed at GSK’s vast Belgian sites.

«GSK’s mobility programme looks at the big picture perspective. Carpooling is just one mobility solution and forms part of a far bigger package of efficient mobility orientated solutions.» Giovanni Novello Senior Facilities Manager

Gregory Falisse Mobility Manager

he commute for the vast majority of Belgians means opening the driver’s door of a car, sitting down and starting up the engine. GSK is encouraging its employees to open car doors, but as passengers. Carpooling, where colleagues travel together in the car, is the new medicine for employees at this pharmaceutical giant. For the individuals carpooling presents cost savings, and the collective action of commuters to carpool would have a huge effect on congestion and carbon emissions. Whilst for the corporate coffers there’s the potential to significantly reduce pressure on parking facilities and costs, as well as improve relations with neighbours who are often frustrated about congestion caused by big office complexes. There may be benefits to be had, but getting people to change their behaviours, give up the chance to hold the steering wheel and share their cars with one another is not simple. It seems that we are welded to the wheel and there is something scary about sharing. GSK has been promoting car sharing with great successes, with employees enthusiastic about sharing with one another. Mobility Manager Gregory Falisse explains, “We’ve had a takeup of around 16%. The regional and national levels for carpooling are around 4%, so what we are doing at GSK is quite an achievement”. With 8,000 people employed at GSK sites outside of Brussels, this translates into a significant number of people carpooling and, in turn, cars that are being taken off the road.

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Looking at the big picture GSK mobility programme takes a big picture perspective. A series of mobility measures have been implemented with carpooling – or ride sharing – just one. GSK recognises that employees’ mobility needs vary, and that on an individual level on different days there will be different mobility needs. The mobility plan aims to reflect and support this. Carpooling is a part of the mix. Everything did not happen at once and carpooling was not a success over night. Change takes times. Senior Facilities Manager Giovanni Novello, responsible for Mobility, explains, “We had a number of waves of awareness-raising campaigns and a number of systems for carpooling were set up. Our success is the result of providing information and support on a long term basis”. The offer of an allocated car parking space to carpoolers is an incentive that has caught the eye of employees. Employees with company and private vehicles participate in the carpooling system, which operates through an on-line booking system. This is a very recent development and it has added more flexibility to the process, as well as saving time. The system today automatically matches potential partners in real time, and introduces them to one another. Carpooling has become simple. With automation and up to the minute information re-assuring employees that carpooling can be organised on a day-to-day basis, confidence is rising. Next up is a new booking system which will further streamline the system and will encourage even greater adoption. Tim Harrup

BUSINESS SOLUTIONS

Taxi

Mobility time: It’s time for taxis Until recently the costs of taxi travel have been buried in expense reports, barely seeing the light of day. Times though are changing as budget lines are scrutinised in the search for savings.

“Often a forgotten piece of the journey jigsaw, the humble taxi has been long accepted as the solution for the last leg of the journey.”

he oldest mobility service, the taxi, could be about to get a bad name as its costs come to the surface. Often a forgotten piece of the journey jigsaw, the humble taxi has been long accepted as the solution for the last leg of the journey. And it has been one cost that has been hard – if not impossible – to control. A budget-conscious corporation will hunt meticulously to bag the best price on flights, but the taxi ride for the final stretch of the journey is seen as an unavoidable cost. In our home cities we may know the shortcuts on how to get around, but in an unknown location; far from home; after a tiring trip, being driven the long way round (in a little bit of luxury) to your hotel is a necessary evil. Managers don’t scrutinise the taxi receipts, right? Increasingly – wrong. Tighter budgets and technology mean that travel managers have a bigger desire than ever to review the corporation’s “ground-transportation” budget. With smartphone apps and global cab companies giving coverage and visibility of taxi spend, travel managers now have an opportunity to make a difference. With visibility comes the opportunity for control. Competition and customisation Take Transport for London – the corporation that manages the colossal London road, rail and river infrastructure – which endorses no fewer than four smartphone apps: Cabwise, ComCab, Hailo, and Get Taxi. Based on GPS, these apps offer travel departments and travellers an array of benefits like selecting a cab based on its location and price, queue-jumping, paying in advance and receiving an email receipt. Take the same idea and roll it out across 70 major cities and you’ve got Cabforce, an international taxi company with a presence on three continents – North America, the Middle East and Europe – and with plans to hit Australia too. With these systems the traveller is empowered and the corporation has the opportunity to utilise a one stop taxi solution internationally. Make my life simple Cabforce – and its competitors like Uber –make a travel manager’s life easier because they bring consistency and accounta-

«A budget-conscious corporation will hunt meticulously to bag the best price on flights, but the taxi ride for the final stretch of the journey is seen as an unavoidable cost.» bility. Using one company across the world means familiarity and uniform billing; and fares can be gathered and scrutinised at a central point. The potential to forecast taxi expenditure also becomes a realistic proposition and, in turn, there’s scope to negotiate with suppliers and find savings. For the traveller, such systems suck out complications. No longer will taxi receipts have to be justified and potential issues like language barriers, local currency, receipts, and tipping etiquette are overcome before they even take a seat. Bye Bye Driver With in-car connectivity and autonomous driving projects, how long is it before we arrive at an airport or rail station and a driverless taxi drone comes to pick us up? Far fetched? Probably not. The changes that smartphones and apps are making to mobility choices today mean that our mobility futures look really rather different. Set your smartphone (or whatever the next life-changing gismo is) to ready because it’ll soon be time to open the taxi door, step inside, and greet your robo-driver. Alistair Millar

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VISION

Mobility as a Service

On Demand Mobility Driving a car doesn’t mean you have to own it. That startlingly simple statement has been eating away at the traditional model of car ownership for decades. And the trend is accelerating: older alternatives like rental and leasing are now joined by a growing number of new mobility solutions, with car sharing the most prominent. Will these new options replace the old ones? Or will they fuse together into something else?

ising fuel prices, the continuing economic crisis and the influence of the internet are exacerbating a pre-existing trend: a slowdown of the rise in vehicle-kilometres travelled. In some mature markets there has even been a decline. Perhaps, as some experts speculate, we’ve hit ‘peak car’. Younger people are driving less than their parents. They are also less keen on owning a car. For an increasing proportion of the population it is no longer about car ownership. It’s about getting from A to B. It seems that the car is losing its status as an icon and a symbol of success; especially amongst young urbanites. The rise of car sharing as a better alternative has signaled the birth of ‘Mobility as a Service’ (MaaS) in towns and cities across the globe. The corporate community is not unaffected by the emergence of MaaS; an increasingly urban population that is less focused on car ownership are, after all, a company’s employees. It is time for corporate car ownership and incentive packages to be reviewed? Perhaps. Could corporate mobility schemes and incentive packages replace them? Maybe. Sharing makes sense Sharing a car is an increasingly popular alternative to ownership, because it is sensible on both the micro and macro levels. At the micro level, sharing reduces the cost to the driver. The

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sharer only pays for the time they are using the vehicle which, in turn, makes mobility more affordable. At a macro level, it’s a better use of resources, with sharing being shown to reduce car ownership, free up parking and reduce congestion. Its sounds like a win-win. Why pay for a car when it is not in use? It seems a simple solution, but there administrative, practical and emotional complexities to overcome before corporations embrace MaaS big time. The marketplace needs to create new solutions that match evolving new mobility needs. New ways of renting and sharing The market is experimenting with new ways in which car-sharing and car-renting can coexist, overlap, cooperate or merge. After all, isn’t the crucial difference between renting a car and sharing one simply a matter of time? A shared car is one hired for short periods of time, like car2go offering cars for hire by the minute. A rental car is one hired for a longer period, say a day or more. Looking from the big picture perspective the models are the same. The differences only emerge at a practical level. A telling step towards convergence was the acquisition of Zipcar by Avis, the world’s second-largest rental company. With over 800,000 members and close to 10,000 cars in half a dozen countries, Zipcar is the world’s biggest provider of car-share services.

Golden ticket What will be the outcome of this acquisition? It is perhaps too early to tell, but the takeover resembles the big, bold acquisitions in other fast-changing industries like media and ICT. Either Zipcar will be a liability holding back Avis, or it will be its golden ticket into the brave new world of on-demand mobility. The same goes for some of Avis’s competitors, who have also got into the car-sharing game too - not by acquisition, but by setting up their own versions of a car-share provider. Enterprise has set up Enterprise CarShare, while Hertz debuted Hertz On Demand 24/7. Hertz 24/7 is currently available at 1,800 neighbourhood and airport locations in the U.S., France, Germany, U.K., Spain and Australia with plans to be in more than 2,000 locations by year end. The company has 35,000 vehicles (cars, mini-vans, vans and SUVs) equipped for 24/7 rentals and is aiming to have 500,000 24/7-enabled vehicles in service globally by 2016. At that point, Hertz 24/7’s fleet would be more than ten times the size of the current car sharing industry combined Hertz Chairman and Chief Executive Officer, Mark P. Frissora, said at the launch of 24/7, “Urban and suburban customers will be able to rent a much wider variety of vehicles at any hour – not just weekdays 9 to 5 when a neighbourhood rental location is open. 24/7 service is a key part of our commitment to create the fastest, easiest and most valued rental experiences in the business.”

«To achieve EV targets more buyers are urgently needed.»

A telling step towards convergence was the acquisition of Zipcar by Avis, the world’s second-largest rental company.

«We’re moving today towards a hybrid market and one that is focused on offering Mobility as a Service.» Are Hertz, Avis and Enterprise car rental companies today or are they the car share providers of tomorrow? Maybe they are simply providers of MaaS. Hertz estimates that by 2016, it will have “self-serve” vehicles within minutes of the majority of the United States population. At this pace of change the car rental ecosystem of offices could soon disappear and car rental attendants become endangered species. OEM’s join the sharing society But it’s not just rental companies that are getting in on the deal - manufacturers too are eager to grab their own slice of the on-demand mobility pie. Daimler’s car2go, BMW’s DriveNow and Volkswagen’s Quicar all form part of the mix. There’s also the dedicated car sharing operators, whilst leasing companies are offering corporations car sharing solutions with great gusto.

Established rental company’s, car manufacturers and leasing providers bring operational expertise and financial stability to the car share market. Maybe car share operators, rental companies and others are positioning themselves for the predicted boom: a recent study by Navigant Research predicts membership in car-sharing programmes will increase fivefold over the next 7 years, from 2.3 million in 2013 to 12 million in 2020.

war with the weapons of the last one? Even though their fleets generally comprise the cleanest car makes (including a sizeable chunk of electric vehicles), and they offer reservations for and access to shared cars through a variety of smart cards and smartphone apps, the cars are still, well, theirs. Another, some would say more advanced, model is peer-to-peer car sharing where consumers rent personal cars to one another.

Missing a trick But that’s just as maybe. Predicting the future in a highly volatile sector, one that is still establishing its own ground rules, is risky. Perhaps those rental companies and manufacturers so eager to move into the MaaS business are missing a trick.

The direction of travel is clear: because of a mega shift in consumer attitude, we’re moving away from rental as we once knew it. We’re moving towards a hybrid market and one that is increasingly focused on offering Mobility as a Service. Frank Jacobs

Are the ‘mainstream’ providers of ondemand mobility still fighting the next

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CASE STUDIES

Serviceplan

Why car-sharing works for us Serviceplan Group is one of Europe’s largest advertising and communications organisations with more than 1,500 employees and offices around the world. In co-operation with Alphabet, the group’s German division implemented Alphabet’s Corporate Car Sharing scheme AlphaCity, known within Serviceplan as ‘we drive’. Axel Schörner, “We wanted to minimise the administrative burden, raise service quality and save money.”

«The income returned through private use currently finances almost 100% of our leasing costs. That’s really impressive.»

xel Schörner, Head of Purchasing and Facility Management, took some time out to explain to us why Serviceplan choose car sharing as a mobility solution, how the scheme was implemented and what the benefits have been. What were the factors that motivated Serviceplan to explore the potential for car-sharing? Axel Schörner: For many years, we had a simple car pool system. It was run manually and it was quite fiddly and inefficient. It involved a lot of co-ordination as regards car reservation or key handover. Costs couldn’t be properly allocated to different departments or to individual companies within our group. Standard fleet management procedures, such as the checking of driver licenses weren’t being thoroughly carried out either. In deciding to introduce a professional corporate car-sharing solution, we wanted to: minimise administrative burdens, raise service quality and save money.

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What has been the response to the provision of car-sharing? Axel Schörner: The response has been very positive. Anyone who has borrowed a car and gone through the process, from reservation to collecting to driving the car, has been impressed with the simplicity and convenience of the solution. The 24 hour 7 day reservation and keyless driving aspects are very positive user benefits. How does this compare to the old pool car system you had in place? Axel Schörner: Alphabet’s solution is very beneficial. First off, there’s no administrative hassle. Secondly, the service aspect is excellent and the system runs very smoothly and professionally. It is convenient: everything is done at the click of a button or the wave of a card. You can see immediately via the online booking platform if a car is available or not, reserve it straight away and access it using a card. With our old system, we were dependent on our reception service for information on availability and for car pick up. So if you were stuck in

a meeting and got to reception too late to get the key, you missed out. With the new solution, car return is also hasslefree with no key to hand over to the next user – just park, log out and walk away. The solution comes with an additional private use option. Do you use this? Axel Schörner: Yes we do. We were really impressed with this innovative aspect when we opted for this solution. If pool cars aren’t needed for business trips, or are idle in the evening or at the weekend, they can be used by employees. For our young employees who don’t have their own car, this is a fantastic benefit and an incentive to boot. It also encourages more effective use of our pool cars. Private use of a pool car is paid for using the employee’s personal credit card. We understand that the income generated can be offset against a company’s mobility costs, thereby reducing them. Would you agree with that? Axel Schörner: I definitely would. This is one of the big advantages of this car-

ding wear and tear and petrol costs, the income from the private use almost completely covers the leasing costs of the cars. Are you considering introducing more shared cars to service demand? Axel Schörner: As soon as one of our operations reaches a size where it is worthwhile to introduce a pool car, we definitely would use this system to do so. Are employees able to use public car-sharing schemes in addition to the corporate car-sharing solution? Axel Schörner: Yes, we encourage our employees to use public car-sharing systems too, especially if they are in locations where our own corporate solution is not available.

An example of the on-line booking system.

sharing solution. It supports our original ‘cost-saving’ goal when choosing a new system. In fact, the income returned through private use currently finances almost 100% of our leasing costs. That’s really impressive. Can you explain how you presented the business case for car-sharing to management? Axel Schörner: This was pretty simple. Our argument was that the existing pool car solution was for an different era, and needed to be replaced by something more innovative and technologically supported. The new solution doesn’t affect the company car fleet used by top management, only our pool car system, so no one loses their company car benefit. How has the provision of car-sharing impacted the use of other types of travel? For example, has it reduced travel in lease cars, reduced taxi travel, car rental, public transport etc? Axel Schörner: Taxi and car rental use has been reduced as a result. Through the simplicity of the booking system and the convenient access to pool cars, it is now much easier to borrow a car than take a taxi or rent a vehicle. Public transport is generally not used for inner-city client visits so there has been no real effect there, as is the case with business trips by train or aeroplane.

Have you faced any objections to carsharing and how did you overcome these? Were there any operational challenges in implementing the scheme? Axel Schörner: Not really. Our employees are generally quite young and embrace new thinking. Everyone has their smartphone and uses a variety of mobility services nowadays. All in all, they are all very open to new approaches so acceptance and uptake of the new solution was strong. There were no technical challenges as the system is so easy to operate. Was it difficult to implement the solution initially? Axel Schörner: Not at all – in fact the introductory phase was very impressively arranged by Alphabet and paved the way for a smooth implementation of the solution. At the start of the rollout, Alphabet set up a reception in our cafeteria, presented the scheme and its advantages to employees and organised membership registration. Employees were really taken with the benefits, particularly the low-cost, private use aspect.

What are the benefits of a corporate car-sharing scheme over a public carsharing scheme? Axel Schörner: I would have to say that for us, using our own solution is more advantageous from an availability and administrative aspect. With our solution, availability is guaranteed. In business, where minutes count, you can’t afford to spend time walking to the next available car. The car has to be there. On the administrative side, controlling, evaluation and transparency are only possible with our cars. We can see where and when the cars are used. We can evaluate journey length and mileage. Costs are easy to see and automatically allocated to the right cost centre or company. Tim Harrup

The Alphacity system features keyless entry.

What has been the return on investment of introducing a shared car solution? Axel Schörner: I can’t give an exact figure. I can only say that overall it has been a cost-saving exercise. Not inclu-

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VISION

Joining up Journeys

Interconnecting the Metropolis Efficient, cost-effective trains, planes and automobiles are today just a few clicks away so travellers can mould transport around the trip, instead of the trip around their travel arrangements. But Europe’s transport system is crying out for assimilation – it’s time for trans-city, trans-national and trans-continental mobility cohesion.

anding in London’s Heathrow airport, any budget-savvy traveller knows their firstport-of-call is the travel centre to buy an Oyster smartcard. If confining your trip to London’s zones one and two, it’s £30 for a week. It’s convenient, there’s no hassle, and it starts to look like real value-for-money by the end of day two. This article’s not an advert for Transport for London’s premier travelcard – other cities do it just as well. The Visite pass opens up Paris to the traveller, Berlin’s WelcomeCard does the same. In today’s world class cities, access to metrolines, overground trains, buses and river transport has become simple and convenient with integrated smart card technology. Passengers simply jump between different modes of travel without needing to buy a ticket each time. This integration is something urbanites take for granted – but it wasn’t always so. London’s underground arteries were once owned and run by different providers so changing lines meant a new ticket, additional expense and hassle. The bus was completely separate too. Time to get smarter Over the past few years smart travel cards have changed city transport maps, but time has moved on. Today there are new modes of mobility that can be integrated into smart card solutions such as shared bikes and shared cars. Perhaps

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its time the taxi was brought into the equation too. And why stop at the city-wide level? What about sub-urban, regional and international. Surely big data presents an opportunity to integrate all modes of transport in a single smart card technology. We read time and time again that the world is getting smaller – and more accessible, so joining-up not just local journeys but inter-continental journeys is a problem to be solved. Efficient, accountable and seamless smart travel solutions with centrally tracked onepayment systems would be high on a corporation’s wish-list. Plug and Play Mobility Knowing when and how to travel isn’t the hard part of the equation anymore. Technology will let you know what routes to take, the conditions of travel, costs and times. But the challenge – or the inconvenience – is that these systems operate in silos, information is offered independently and travel access arrangements can be rigid. With pre-payment, smartcard contracts and unfavourable terms and conditions, flexibility is not encouraged. A traveller’s ability to switch between different modes of travel depending on prevailing conditions is being constrained. The panacea appears to be a single smartcard or - other technology

based solution - that allows plug and play mobility across all modes of travel. Thankfully the pioneers have seen the light and are in the process of opening up travel to integration like it has never seen before. All in one mobility BeNeLux innovators are leading the new smartcard revolution. XXImo, a smartcard mobility solution started in the Netherlands in 2012 and now in Belgium, offers corporate travellers access to all the modes of mobility they could ever need – as well as access to business lounges and meeting spaces for third place working. The mobility solution gives access to buses, trains and trams with payment post trip, as well as giving

«Transnational travel now is like citywide travel before the introduction of the city travelcard - unconnected, complicated, steeped in competition. It’s a problem that needs solving for the good of the consumer.» We read time and time again that the world is getting smaller - and more accessible, so joining-up not just local journeys but inter-continental journeys is a problem to be solved.

Jack Knol is responsible for facilities and accommodation, mobility management and smart working strategy in the Netherlands.

seamless access to shared cars and bikes. Taxis can be booked and paid for too. It also looks scalable beyond just local and regional travel. A partnership with travel giant ATP International means that intercontinental rail, air and hotel bookings are also in its scope.

Bunnik told Smart Mobility Management in August, “For example, if you do not wish an employee to have access to air travel then it can be switched off. It’s that simple. “Bunnik reckons the XXimo approach is “mobility from a new mindset”. We would tend to agree.

XXImo’s business is presenting clients with a one-size-fits-call mobility card for access all areas travel, an easy solution for travellers on the ground in that part of Europe. Worth noting is that XXImo isn’t a carte blanche travel pass for employees – but a convenient tool allowing for travel and budget management with the ability to install failsafes and constraints. “Different modes of mobility can be switched on and off based on demand and preference” as XIImo’s CEO Patrick

Time for a new mindset You would be forgiven for thinking car markers weren’t mad keen on plugging public transport or car sharing. Think again. Daimler Mobility Services mobility programme “moovel” is a pilot scheme endorsed via sizeable expansion – from Nuremberg and Stuttgart and into Berlin late last year. It brings together all modes of public transport the city operators offer, alongside Daimler’s products car2go and Car2Share.

The moovel app is a one-stop hub where a range of travel options are available from a central point. Ask moovel how best to get from A to B and it gives you the answer. It’s Smart stuff. Book your car2go smart car via your smartphone, and jump on the bus to reach it. A project such as moovel can boast that it’s new, it’s green and it’s integrated. It’s showing what is possible on a city wide level and what could be a future transnational solution. It seems Berlin is a battleground for mobility schemes. Citroën’s Multicity scheme earned its stripes in France and it too advanced into Germany’s capital in 2012. Multicity is a website or app-based system helping drivers join-up-journeys similar to moovel. Citroën’s scheme uses 350 C-Zero electric cars armed and ready for PAYG travellers. The system – €100 for 500 minutes of travel is about average – is compatible with German U and S-Bahn trains, the country’s Calla-Bike service and national car-sharing company Flinkster if the driver wants to go further afield. Time for change There’s a number of schemes about and we keep reading words like “pilot” and “trial”, so we haven’t yet found a definitive solution to mass mobility integration. Transnational travel now is like citywide travel before the simple city based travelcard – unconnected, complicated, steeped in competition – and a problem that needs solving for the good of the consumer if we are to move more freely, efficiently and sustainably. Alistair Millar

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VISION

Car Sharing

Mobility frontiers: Is it time for P2P? The rise of the shared economy and collaborative consumption is not just impacting the voluntary sector and B2C business model, it’s also changing the B2B marketplace. With Mobility as a Service becoming a buzz word we pause for a moment and ask whether P2P car sharing has the potential to shake up corporate mobility even further.

n the past talk of shared mobility meant conversations about buses, trams and trains. Today it is different story. In the last few years private spaces in a car have become public spaces that are available for hire; by the minute or the hour, or by the journey. There is a lot happening on the frontiers of Mobility as a Service (MaaS). One of these evolutions, P2P car sharing, has been borne out of the boom in car sharing. Like car sharing it has the potential to change your outlook on car ownership and influence your corporate mobility strategy. Old ideas given a new lease of life Car sharing is not a new concept. However, in the past few years access to mobile and real time data has turned the concept on its head. A new formula has emerged and the results have been dramatic. MaaS was born. Back in the 1980’s car sharing schemes were operated by niche communities to overcome rural inaccessibility or in response to environmental beliefs. Yesterday’s niche communities offering single car share schemes have morphed to become today’s car sharing operators offering hundreds of cars city wide for a commercial end. It’s a growth industry with two million members today. By 2020 experts reckon a quarter of a million cars will service up to 16m sharers across the globe. The B2B market has played a significant role in driving up car

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share membership and it will continue to do so in the future. The next step in the evolution of car sharing So what’s next? What’s happening on the frontiers of MaaS that could change your corporate mobility strategy in the next few years? On most people’s lips is P2P car sharing. P2P car sharing may be a bit extreme for some palates in corporate circles, but tomorrow’s mobility solutions are becoming reality at a perpetually faster pace. In a few years, the appetite for P2P car sharing in the personal and corporate environment looks set to get bigger. P2P essentially means giving another person access to your personal, or a company’s car, for a fixed time period: an hour, half a day or however long you wish, for a payment in return. In effect, as the car owner you become a car sharing operator utilising the services of an independent aggregator who facilitates buyer – seller interaction. The idea of a stranger sharing your, or your company’s car, may turn you and your employer off instantly. Yes, there will be health and safety, security and cultural challenges to overcome, but wipe them from your mind. Try to think about the opportunities ahead. Car sharing faced its obstacles. Remember the evolution of car sharing? How many people could have predicted that car sharing would be a mainstream

mobility solution in global cities in the 1980 or 1990’s? Not many. Focusing on the opportunity The conditions for P2P are being created. The insurance industry, which initially had great difficulty getting its head around the P2P concept, has created suitable P2P insurance products which can be bought by consumers in the US and Europe. The removal of big structural barriers like access to insurance is huge. It opens up the opportunity for P2P proponents to focus on the opportunities and on creating the conditions for cultural change amongst society and corporations. What could P2P offer a corporate customer? If a return on investment exists then anything is possible. There are two opportunities that immediately spring to mind. The first, providing the business and its employees with access to on-demand mobility without any up-front costs, and the second, turning the fleet from a cost centre into a profit

«P2P car sharing may be a bit extreme for some palates in corporate circles, but tomorrow’s mobility solutions are becoming reality at a perpetually faster pace.»

So what’s next? What’s happening on the frontiers of MaaS that could change your corporate mobility strategy in the next few years?

centre during periods of fleet downtime. Research has shown that personal cars are parked for around 95 per-cent of the time waiting to be driven. When it’s not in use, why not rent it out? Vehicle usage in corporate fleets will be higher, but there will always be down time when a car is sitting idle. With P2P as part of the corporate mobility strategy, a fleet manager could become a seller of mobility during fleet downtime; as well as a buyer. If P2P booms then a corporate fleet manager’s job description will need re-writing. It’s already happening Its not pie in the sky either. P2P car sharing is happening today. Over the last few years in the US there’s been a surge in interest for airport-based P2P schemes. Flight Car – which offers P2P car sharing at Boston Logon International and San Francisco International Airports – and fellow US P2P car sharing provider

RelayRides, are already beginning to show car owners and consumers that there are different ways of securing mobility. FlightCar insures each car up to $1 million, pre-screens all renters and its attendants pick drivers up and drop them off at the airport after they have deposited their car at the FlightCar facility. Depending on the type and model year of the vehicle, renters can make up to $20/day and avoid costly airport parking charges for letting Flightcar rent out their car.

rental reservation volume increased by over 450 per-cent from the same period the previous year. There’s an emerging cadre of proponents who are backing P2P sharing.

The P2P models are not static with suppliers responsive to customer feedback. “Since we started RelayRides, our renters and owners have inspired more innovations in our marketplace, including a more convenient and affordable solution for airport rentals,” according to RelayRides CEO Andre Haddad. Since its national launch in 2012 RelayRides has expanded to serve tens of thousands of members renting thousands of cars in more than 1,600 cities across the US. In July this year the company’s total

Whereas car-sharing has a finite motor pool, P2P could one day involve every car on the road. If the P2P experiment at airports is cracked, then it has potential to crack so many other aspects of the mobility world too.

Looking to the future In the last few years technology has organised, corporate-ised and tightened the management side of car-sharing, and there is nothing to say that the same process cannot take place in the P2P market.

Alistair Millar and Jonathan Green

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VISION

Video as a solution

It’s not always about moving around The future of corporate mobility is not always about moving to meet up with one another. Today it is neither exceptional nor eccentric to use video based communication, but some corporations make more of success of video than others. What is it that makes video a success and how can unified communications improve business performance? Jonathan Green finds out.

Jan Dezutter “Today, using just a browser and sending your contact a blue hyperlink it is possible to enter a video call. That is simplicity in action.”

Bart Eelen “At the corporate level it is about finding the appropriate unified communications solutions to meet expectations of an increasingly video savvy employee, and then successfully and seamlessly integrating video in booking channels.”

ver the years video has had to ride waves of criticism. There have been questions over its user friendliness, quality and effectiveness. Today’s incarnations on video surf on the crest of a wave. Video has not simply been accepted, it has been embraced. I’ve connected to Jan Dezutter, Sales and Marketing Manager BENELUX and Bart Eelen, Senior Video Consultant Europe, from Interoute to discuss how video and unified communications can help corporations improve business performance.

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Keep it Simple I’ve just scrolled down a menu of options on a HD video screen in Interoute’s London offices, found Jan’s name on an address book and pressed the green button on what looks like a TV remote control. That’s it. I’m connected. Jan pops up on screen from Interoute’s Belgium office, greets me and calls in Bart who is working from his home in Belgium. A three way video call has taken seconds to set up and after a few minutes of introductions we are ready to start our discussion.

THE EVOLUTION OF COMMUNICATION How has video evolved over the last decade? Jan Dezutter: There has been a dramatic evolution of video. Today it is so much simpler. And behind the scenes the system requirements have been made simpler too. For example, a few years back video units needed to be provided by the same supplier. We both could have a video system in our offices but we would not be able to connect. A lack of inter-operability was a big problem. Today it has disappeared. All that users need to connect is a browser – an inter-

«In the past video used to be about enabling continental communication and was seen as a way of replacing long distance travel. Today video is used by corporations to communicate at the national and city level, as well as internationally.»

“Video projects do not fail because the technology does not work. Today the technology works. It’s simple, intuitive and highly effective.”

Jack Knol is responsible for facilities and accommodation, mobility management and smart working strategy in the Netherlands.

net connection. It’s that simple. For example, Bart has joined this conversation over the internet using his PC. How has the use of video in the workplace evolved? Bart Eelen: In the past video used to be about enabling continental communication and was seen as a way of replacing long distance travel. Today video is used by corporations to communicate at the national and city level, as well as internationally. The use of video is no longer determined by distance, and it is not simply seen as a

substitute for travel. The value of video is now derived from how it improves business processes and facilitates the delivery of business outcomes.

tions offers multiple video solutions, from high end tele-presence suites to video on a tablet, and they are all integrated with telephony systems and e-communication.

Jan Dezutter: This changing use profile means that there has been a move away from room to room usage, as video has moved into all areas of the business. As the scope of video solutions has evolved, so to has the application.

It is all about identifying how the various communication solutions can be configured to create value for the business, and then making them accessible. A one size fits all solution will not work.

What do you mean when you say the scope of video solutions has evolved? Jan Dezutter: Today it is about unified communications. Unified communica-

Bart Eelen: Video via screens on a wall, via tablets, via desktops and via laptops. VOIP integration makes unified communications accessible across the business.

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VISION

Video as a solution

Accessibility is about simplicity. Simplicity is essential if a solution is going to be successful. The first step is about understanding how the different elements of unified communications can be deployed to improve business performance. The next step is deployment and creating the corporate culture to drive adoption. Jan Dezutter: As Bart says, the culture of the company is really important. The secret of success is the physical set up and creating the conditions for video utilisation. We pay attention to the detail - making sure the dimensions, the acoustics; the positioning of the video system is conducive to communication and adoption. There’s more to it then simply placing a video suite in a meeting room. The next step is the accessibility to book and use the system, and then the quality of the experience. Today, using just a browser and sending your contact a blue hyperlink it is possible to enter a video call. That is simplicity in action. Bart Eelen: Look at the use of video in everyday life. In our personal lives the use of video is ahead of that in corporate life. Skype, for example has 660 million users. For business use however, there is quality issues and security concerns that we don’t perhaps add as much weight too in our personal lives. Today’s generation are growing up with video in their daily lives and have done for some time, and they are going to expect this type of communication in the corporate environment. At the corporate level it is about finding the appropriate unified communications solutions to meet expectations of an increasingly video savvy employee, and then successfully and seamlessly integrating video in booking channels. What do you mean by seamless integration? Bart Eelen: Video booking can be integrated in Microsoft Office systems for example, making it really simple for employees to use video suites. When we look at some of the travel bookings systems that corporates use video is not yet integrated. There may be a question on the booking site that asks whether video has been considered, but users are not presented with an option to book video there and then. They have to go out of the system and into another portal to book travel – this makes it a hassle, an inconvenience. It goes against the simplicity I talked about earlier. What we are moving towards is a single portal where travel and communication can be booked from one place – in one move. This integration will change corporate culture. It is in this area that the market will see demand, and buyers are already looking for innovation from the supply side. A common compliant when video does not succeed is that the technology is not fit for purpose. Jan Dezutter: Video projects do not fail because the technology does not work. Today the technology works. It’s simple,

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intuitive and highly effective. Video fails because the implementation of the solution has not been thought through. Purchasing a video solution, plugging it in and then walking away is not going to lead to success. What is your objective? How will video support the delivery of that objective? Who is going to use the video? What support is available and how should users be offered assistance? These are important questions that those responsible for implemen-ting a solution need to ask themselves – and they need to be able to answer them. A pivotal part of our role is to support the implementation and the integration of video in the business. We offer support and coaching to support. Having internal advocates of the system is an excellent way of building awareness and trust in the capability and capacity of video. Bart Eelen: We also provide management information and analysis to demonstrate the value that video is creating value from a cost, productivity and environmental perspective. This holistic approach to value supports an Return on Investment (ROI) calculation. In your experience who is best placed to manage unified communications? Jan Dezutter: This depends on the company and the specific scenario. The role of IT is to make sure the solution works, but IT professionals are not best place to lead the implementation of the solution. The ownership of video should reside with the business area that is utilising video. This business area or person is responsible for making sure that the solution improves the business process, and value can be measured against agreed Key Performance Indicators. Video as a Service (VaaS) is a solution that we offer to help corporate implement, manage and get the best value that they can from video solutions. Interoute’s VaaS provides much more than just the physical equipment needed to make a video call. It’s a fully managed service to ensure that your move to video meetings brings all the business benefits without the IT headaches. From virtual receptionists to greet people as they join the meetings, to the option of specialist technical support team on standby to ensure your important meetings run smoothly. We can provide internal marketing and training packages and even our unique Meeting Intelligence Analyzer software solution, so you can understand and manage usage to get the most benefit from the solution. Any solution is about the ROI and our experience shows time and time again that video achieves a quick ROI. Jonathan Green

BUSINESS SOLUTIONS

Industry News

Benchmarking survey reveals saving opportunities The 8th Annual Runzheimer International® Total Employee Mobility® (TEM®) Benchmarking Report shows that companies that outsource 50 percent or more of their business vehicle program management are spending less overall per driver, yet have significantly greater efficiency in program administration, as evidenced by the average number of drivers that can be served by a full-time employee. The report also shows that companies with high revenue growth (greater than 10 percent) support nearly 40 percent more business drivers with one full-time employee than companies with little to no revenue growth, resulting in higher program efficiency. The results show that investment in business vehicle program administration is a key component of increased efficiency and cost control, and a common practice in growing companies. Companies that outsource their business vehicle programs can also support more business drivers with a single employee than their low growth and non-outsourcing counterparts. Additional key findings indicated that companies with fleet programs spent 33 percent more per driver than companies using a vehicle reimbursement program, and 81 percent of companies who implemented a personal vehicle reimbursement program reported an increase in productivity. “Many companies may not know that there are alternatives to the way they currently administer vehicle policies and programs. The findings make a case for companies to consider outsourcing as a new approach for business vehicle program management,” said President and CEO of Runzheimer International Greg Harper. “Using benchmarks as a guide, our annual mobility report provides all companies the opportunity to measure their business vehicle investments and understand which app-roach may be right for them,” he added.

Mobility Futures: Meeting Business Needs PwC research predicts the number of workers taking on global assignments is set to increase by 50% in the next decade as companies re-think where their talent needs to be based to fulfil their growth ambitions. The ‘Talent Mobility: 2020 and beyond’ report reveals that companies will need to offer new forms of global mobility to respond to skills shortages, changing business needs and employee preferences. Carol Stubbings, UK international assignment services leader at PwC, said, “Skills gaps in overseas markets, the changing business world and preferences of a new generation of employees will force many organisations to increase global mobility opportunities for their staff.”

Volvo leads the way with green programme The Volvo Group is the fourth best company in the world when it comes to reporting how the Group works with environmental issues according to a ranking by Global Engagement Services (GES). The ranking consists of 1,600 international companies with the top three being Xerox, Motorola and Sony followed by the Volvo Group. “The interest in sustainability issues increase year by year”, says Malin Ripa, responsible for the Volvo Group’s sustainability reporting. “We have worked with these questions for over 40 years and we have thorough material and long experience in this area which is a prerequisite for credible reporting.”

Connected car market booming The global connected car market is expected to reach USD 131.9 billion by 2019, growing at a CAGR of 34.7% from 2013 to 2019, according to a new market report published by Transparency Market Research “Connected Car Market -Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013- 2019”. The growth in demand is primarily driven by factors such as growing awareness about safety and security and need for connectivity. Safety and security services such as emergency call (eCall) and stolen vehicle tracking (SVT) are becoming popular among consumers. Demand for other services such as gaming, entertainment, traffic information, and weather and location information is further supporting the growth of this market.

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VISION

Robotic futures

Judgement Day: Robots in the work place In the Hollywood blockbuster the Terminator, Arnold Schwarzenegger, plays the role of cyborg sent back to 1980’s Los Angeles from 2029 to kill the mother of a future resistance fighter. The robots creators, human kind, have lost control in a world of machines. Far fetched sci fi or a freaky future? Jonathan Green had a chat with Futurist Rohit Talwar about what today’s robots are up to and what they may be doing in the future.

029 is only around the corner. Whilst the Terminator was science fiction we humans are no longer alone. In an increasingly robotic world our electronic friends helps us plan and manage mundane tasks and exciting adventures. Robotic involvement in our daily lives is racing ahead. Just take a look back at the automotive industry of the early 1980’s to see the transformative effect of robots. Today one provider, ABB Robotics, the Swedish-Swiss giant, has over 190,000 robots operating on automotive production lines around the world. Robots are no longer fixed to the factory floor. “Today’s robots can run as fast as a 100 metre sprinter and they can jump higher than us” explains Rohit adding, “The price of robots is falling.” On the cusp of change We frequently hear that the only constant is change and that change is happening all around us – and it’s happening all of the time. What’s happening in front of our noses however, is not always visible. The cumulative impact of change cannot always be understood. That’s where futurologists come in. Rohit Talwar spends his time identifying future trends, drivers and shocks and how they will impact business and society. “This is a freaky period” says Rohit. “What we think is going to happen in the next 20 years is going to happen in the next 2 years. It’s a confusing time for

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people. There is so much that is happening right now that it is difficult to get our heads around it.” Robots in the workplace Robots are storming into the workplace. Rohit waxes lyrically about Foxconn, the world’s largest electronics contract manufacturer, which was rocked by multiple employee suicides a couple of years ago as an example. He explains, “To solve the problem of employee suicides Foxxconn has placed an order for 1 million robots.” Robots do not have emotions. They are able to comprehend more than the mere human mind, at a faster pace and are cheaper. Add into equation that they are more consistent and precise in what they do and it seems that the role of humble human employee is in jeopardy. There are two schools of thought about the future of human employment as robots enter mainstream employment. The first is that robots will not pose a risk to employment. “Robots will create an industry in themselves and new employment opportunities will follow”, explains Rohit. On the other side of the debate is the belief that robots will take away human jobs and no alternative opportunities will be created. Talwar believes that past experience teaches us value lessons. “We have seen in the past that technology displaces people before new jobs are created. Robots in the labour pool will create a disturbance. It will take time for the

employment market to adjust. The type of jobs we have today will not remain in the future.” Robots have, to date, mainly been deployed to replace humans on the factory floor. As robots develop self awareness (that’s artificial intelligence) this will change. “Robots will take away human jobs and it will not just be lower skilled employee that will be replaced. Employ-

«We have seen in the past that technology displaces people before new jobs are created. Robots in the labour pool will create a disturbance. It will take time for the employment market to adjust. The type of jobs we have today will not remain in the future.» Rohit Talwar

at the end quiz it was Watson that came out on top. Watson had access to 200 million pages of structured and unstructured content, but was not connected to the Internet during the game. Watson searched his, hers or its mind for the answers. By understanding natural language Watson is breaking down the barrier that exists between people and machines. By being able to generate hypotheses and recognise that there are different probabilities and various outcomes Watson has moved on from being just a wonder in the world of entertainment. IBM has taken Watson to medical school. Watson is now an oncologist diagnosing cancers and advising on treatment.

Ford is studying communications between space robots and Earth to enhance future applications of the connected car communications protocol.

ment at the higher end that demands skill, knowledge and intuition can today be fulfilled by robots. Just take a look at IBM Watson is doing.” Hello Mr Watson? IBM Watson first appeared on the US quiz show Jeopardy! Watson was pitted against the shows two greatest ever contestants. All three competitors were asked general knowledge questions and

Watson will also be rolled out to improve customer services later this year. A select number of clients will be using an “Ask Watson” feature. Watson will be on the other end of web chats, email, smartphone apps and SMS messages and in time, with voice recognition from a partner like Siri or Naunce, Watson could be on the other end of the phone to answer your questions. Who’s in the Office? Are they human? And what do they do? Robots with the potential of Watson will have an increasingly visible role in the offices of the future. Robots will fulfil a raft of tasks that today keep the fleet, travel or mobility manager busy. Just imagine what Watson could offer in terms of traveller support or fleet monitoring and maintenance schedules.

Rohit adds, “Businesses are going to offload more and more tasks and rely on robotic solutions in the future. There is going to be a lot of soul searching over the next few years. Ultimately reasons other than the availability of technology will determine the rate and scope of adoption.” Robotic solutions are going to change the face of mobility products and services. The connected car will present an entirely new proposition for todays fleet managers and changing business models, like collaborative consumption, will lead to transformation in the way mobility is procured, and where and when mobility is used. “Take a look at the autonomous car,” says Rohit. “It’s coming very fast. Autonomous cars will be manufactured in the next two years and significant numbers will be on the road in next 2 – 5 years. In 15 years most vehicles will be autonomous. This is a shock to the current system.” The introduction of autonomous vehicles will shake up other industries too, like insurance. How will insurance premiums be calculated and what will connection mean for the total costs of ownership model used by corporations today? New skills in a new world Throw into mix faster and faster connection, wearable technolo-gy, embedded technology in the fabric of the body, 3D printing and personal monitoring devices and the workplace is set to go through a faster transformation than the one we

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VISION

Robotic futures

have seen in the last 15 years. In the new workplace employees will need to have different skillsets and be able to perform tasks that add a new type of value. Rohit wraps up the discussion, “Remember, the changes we are talking about are not going to happen in the next 20 or 30 years. They are going to happen in the next couple of years. Today is the time for businesses to prepare and get themselves into a position that enables future business opportunities to be realised.”

ABOUT ROHIT TALWAR Rohit Talwer is CEO of Fast Future. He has advised governments, global corporations and business association worldwide on a wide range of issues including what the future holds for automotive, food, health, meetings and travel.

What does the future hold? I know I’ll ask someone. What do you think Watson, or would you prefer Mr or Mrs Watson or Sir or Madam? Jonathan Green

Wearable tech reveals what the future holds Gareth Dunsmore, Marketing Communications General Manager, Nissan in Europe, commented, “Wearable technology is fast becoming the next big thing, and we want to take advantage of this innovative technology to make our NISMO Brand more accessible.” With corporate fleet managers under pressure to reduce ever increasing fuel costs any device that provides advice on driver efficiency will be a useful tool in tackling gas guzzling drivers.

issan has unveiled a smart watch for the Nissan NISMO that is designed to optimise more than just the vehicle’s performance. The Nissan Nismo smartwatch, which connects the driver to the car, monitors the vital signs of the driver and presents a health and wellbeing overview that could open up a new dimension in fleet and driver management. The smartwatch monitors the efficiency of the driver’s performance with average speed and fuel consumption readings in real time, and using telematics and performance data systems appraises how driver performance can be optimised. That however, is just the start of the story. The driver is not out of the loop of the appraisal with the smartwatch capturing biometric data via a heart rate monitor.

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We are just at the start of the journey between human and car connection. Earlier this year, Nissan launched a mobile laboratory featuring biometric training tools such as brainwave technology and JukeRide - a cutting-edge performance analysis tool, that captures live biometric and telematics data from the race cars and Nissan Nismo Athletes during races. Nissan’s vision is to make wearable tech available to the mass market and has already set its sights on three health and wellbeing technologies for development in the future. These are: ECG (Electrocardiogram) - to measure the intervals of the R-R rhythm of the heart, and identify early fatigue; EEG (Electroencephalogram) Brainwave - to monitor the drivers’ levels of concentration and emotions; and Skin Temperature - to record core body temperature and hydration levels. Advancements and adoption of wearable tech in the future may see fleet management getting a lot more personal in the future. Jonathan Green

BUSINESS SOLUTIONS

Industry News

car2go expands stateside car2go North America LLC, a wholly-owned subsidiary of Daimler North America, launched its point-to-point carsharing model in the capital city of Ohio on October 26, 2013, making it the 12th car2go market in North America. A network of 250 car2go edition smart fortwo vehicles will be available for shared use in the metropolitan Columbus area. car2go will complement COTA and CoGo services by providing residents with the ability to pair a car2go trip with Columbus’ successful bus system and bike sharing service. “car2go is an exciting addition to our transportation portfolio,” said Mayor Michael B. Coleman. “When paired with taxis, COTA buses, and CoGo Bike Share, our residents will be able to travel between local destinations without the need to own a personal vehicle.”

“After its success in Germany will Moovel will be moving stateside any time soon?

BMW AG mobility winner Frost & Sullivan has recognised BMW AG with the 2013 Global Company of the Year Award for its progressive approach towards delivering new mobility futures. According to Frost & Sullivan, cars like the BMW i3 and BMW i8, and services like AlphaCity, DriveNow and ParkNow represent the future of mobility. “BMW is the one participant in the new mobility products and services market that has not only rightly identified and addressed the changing mobility needs of the global consumer early in its life cycle, but has also set a benchmark for others to follow,” commended Frost & Sullivan Research Analyst Shwetha Surender.

Nissan wins CEATEC Smart Mobility Award Nissan Motor Co., Ltd.’s Autonomous Drive technology has won the Grand Prix in the CEATEC Innovation Awards, the top prize. It was awarded by a panel of independent US journalists working in the fields of IT and consumer electronics. Nissan’s Autonomous Drive technology also won the Smart Mobility, Special Award category. The panel commented, “Nissan’s Autonomous Drive technology will greatly benefit future society by reducing traffic accidents and fatalities, preventing traffic congestion and contributing to a reduction in environmental issues through improved fuel economy.” Nissan’s Autonomous Drive technology is an extension of its Safety Shield, which monitors a 360-degree view around a vehicle for risks, offers warnings to the driver and takes action if necessary. It is based on the philosophy that everything required should be on board the vehicle, rather than relying on detailed external data.

Nissan is pioneering autonomous drive technology.

Eurostar new direct service to Amsterdam Eurostar has announced that it has signed an agreement with the Dutch railways to launch direct services between London and Amsterdam from December 2016. The announcement is part of a package of measures to enhance the services on the Dutch high speed line. The Eurostar service will feature its new e320 trains which will be interoperable and will be compatible with the Dutch high-speed signalling systems. Nicolas Petrovic, Chief Executive of Eurostar, said “We have long been ambitious for expansion to new destinations so today’s announcement marks a major advance in our growth plans.”

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Industry News

Experiencing the VW e-up! Register now for the Business Travel Show’s Hosted Buyer Programme

Taking the e-up for a test drive.

The Business Travel Show, Europe’s main dedicated exhibition and conference for business travel buyers and managers, will be celebrating its 20th anniversary on the 4 – 5th of February, 2014, in London, UK. With more than 200 exhibitors the show boasts the largest and most comprehensive range of suppliers in the business travel industry, as well as offering a conference programme designed to meet the knowledge requirements of the entire business travel buying community. The Hosted Buyer Programme welcomes hundreds of national, EMEA and global travel managers along with procurement, purchasing and sourcing category specialists. To apply for hosted buyer status, applicants need to meet one or more of the following criteria: > Are a Global/EMEA/National Travel Manager > Are a category specialist in procurement, sourcing and purchasing > Responsible for a £1 Million + annual travel/meeting spend > Responsible for budgetary or policy decisions across travel and meetings Hosted buyers receive a range of exclusive benefits including invitations to Masterclasses and informal networking events, complimentary travel and accommodation plus the ability to pre-arrange appointments with a choice of more than 200 exhibitors. To find out more about the Business Travel Show and register for the hosted buyer programme, visit the website www.businesstravelshow.com/smmhb1 and use invite code SMM961 or contact the hosted buyer team on hosted@ businesstravelshow.com

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The new Volkswagen e-up! quietly rolls up beside me. A classy four seat, five door city car, it is the first of 14 models from the VW Group’s brands that will be available in electric or hybrid drive technology by the end of 2014. I’m sat in the driving seat to see whether the e-up! lives up to Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft’s words, “The electric car cannot be a compromise on wheels, it must convince customers in every respect.” First up, lets take a look at the stats and see what the e-up! is packing. Its electric motor produces 60 kW / 82 PS, transmitting 210 Nm of torque to the driven front axle from a standstill. It completes the sprint to 100 km/h in 12.4 seconds, and has a top speed of 130 km/h. With EVs the words on everyone’s lips are, “What’s the range?” The e-up! covers 160 km range on a full charge (18.7 kWh). This gives it plenty of juice for daily commuting and bumbling around the city, though like all EVs its mileage is dependent on driving styles. The strain of winter driving reduces travelling distances too. Nevertheless, The e-up! as an urban resident, ticks the boxes with the distances it can accommodate. Clean and crisp in design, the first thing to strike me is the silence of the drive. The e-up!, like other EVs, glides along but VW’s first foray into e-mobility really is a charming drive. It picks up speed when requested, and I can see that my passengers are quietly impressed. Its on the road performance is not subservient to its fossil fuel twin, the up! In my short experience of getting to know the e-up! it stands up to Winterkorn’s claims. There’s no compromise, and the e-up! identity and personality shines through.

Register today to be part of this unique event Programme and registrations: www.fleeteurope.com/events The Fleet Europe Forum will focus on the 2014 Outlook for International Fleet Management.

NEW

Forum starting at 8.15

The Fleet Europe Village will offer the attendees an ideal place to network and share.

The Fleet Europe Awards will recognize the achievements of the finest international fleet managers and providers.

With the support of:

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AlphaCity Get ahead with intelligence – due to innovative company CarSharing. Redefine the mobility of your employees. AlphaCity: the new CarSharing solution from Alphabet for business and private use. The idea? As simple as it is clever: your employees use AlphaCity car pool vehicles – and you save money on taxis, trains and rental cars. It’s that easy. AlphaCity means reduced total cost of ownership – and what’s more, lower total mobility costs. AlphaCity: the first leasing-based CarSharing solution with state-of-the-art keyless technology. Satisfaction guaranteed.