3Q 2023

What Is the Pathway to Sustainability for As a Service Business Models in Transportation?

Everything as a service (XaaS) models are not a new concept, but the utility of such services has grown exponentially during the past 15 years thanks to the introduction of cloud computing platforms, smartphones, and the ubiquity of wireless broadband connectivity. In many fields, this combination has enabled the rethinking of the whole concept of ownership and whether most people should own expensive assets. In transportation and mobility, XaaS for everything from car-sharing to ride-hailing to batteries is now either an established business or will likely soon become one.

The challenge for mobility-related XaaS is that almost no one has yet managed to find a path to profitable, self-sustaining operations. Most of the companies that have launched over the past decade have since gone out of business—either running out of capital or being acquired by a larger competitor.

XaaS has tremendous potential as a business model and to provide genuine societal benefits. It can be used to improve road safety and reduce congestion, provide mobility for those that cannot otherwise afford it or are unable to be mobile on their own, and reduce resource requirements. Doing so, however, will require some reevaluation of how companies operate as part of the larger transportation and mobility ecosystem.

Pages 15
Tables | Charts | Figures 2
  • What major areas in transportation and mobility could XaaS have an impact on?
  • Why have most of the companies in mobility XaaS failed so far?
  • What new approaches may be required to create successful mobility XaaS businesses?
  • Is automation essential for successful mobility XaaS?
  • How can XaaS make transportation electrification more sustainable and affordable?
  • Automakers
  • Suppliers
  • ADAS/ADS developers
  • Policymakers
  • Transportation regulators
  • Investors
  • Mobility service companies




What Is as a Service?

Vehicle as a Service Utilizes Online Capabilities

Carsharing Was an Early XaaS Model

Vehicle Subscriptions Are Another VaaS Solution

Mobility as a Service Offers Multiple Models

Human-Driven Taxis Are an Old Model

The Automated Driving Model Is Lagging Expectations

Micromobility Programs Had Limited Success

Delivery as a Service Benefits from Favorable Economics

Freight as a Service Fills a Need

Automation Could Address Multiple Issues for Long-Haul Operations

Battery as a Service

Which Models Have a Pathway to Success?

What Is the Attraction for the Customer?

Multi-Service Aggregators Could Be an Ideal Solution

Is Automation the Key?

Should Consumers Just Buy?

What Do We Recommend?

Free Money Does Not Exist

Give Up on the Concept of Growth at All Cost

A Pathway to Profits and Societal Benefit Does Exist

  • Automated Truck and Bus Deployments by Region, World Markets: 2022-2032
  • Annual Robotaxi Deployment by Region, World Markets: 2023-2035
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