Mobility Startups are showing great interest in shared electric vehicles
Electric Vehicles have been a driving strategy for young startups to capture the maximum attention of their potential audiences. Shared electric vehicles have gained much popularity and preference over a brief period of time.
Early in the 2000s, car-sharing services started appearing in major cities, enabling members to borrow cars on a short-term basis. EVs may be a suitable fit for car-sharing fleets because they typically have lower trip distance profiles and greater utilization rates than privately owned vehicle fleets. In reality, a number of vehicle sharing services, like Moov’in (Paris), BlueSG (Singapore), Carma (San Francisco), car2go (Stuttgart, Amsterdam, Madrid, Paris), and DriveNow (Copenhagen), already run all-electric fleets.
This clearly indicates that there is a bright future road ahead and startups are ready to explore and tap the high potential market.
In this small write-up, we are going to discuss the top reasons why mobility startups are sharing their preferences to choose electric vehicles for their shared transport. Let us get started.
What is the shared electric vehicle economy?
There is a separate segment of the market that promotes and supports shared electric vehicle usage. By definition, it is defined as the specific usage of electric vehicles for shared usage. Also known as carpooling, the vehicles are shared by one or more than one passengers during their travel.
Similar to the on-demand ride-hailing economy, industry experts have seen a tremendous demand for shared electric vehicles in the market. If you are a young startup who is ready to explore an untapped or not completely tapped market, feel free to join the tribe and lead the shared mobility market with your brand and its services.
Stats talking about the growth of electric vehicles
- 6.7 m units are Global plug-in light electric vehicle sales by 2021
- China has seen the maximum growth in sales
- The current size of the global electric vehicle market is 1tn USD
These figures clearly state that with time, there are widened opportunities in the market. With the progressive market capturing the attention of potential users, it is important to go ahead and choose the best solutions for your business.
Reasons why the shared electric vehicle economy is rising!
We have already discussed shared electric vehicles. In this section, let us discuss possible reasons why the shared electric vehicle economy is rising.
1) It asks for less investment
To begin with, if you choose to go ahead with shared vehicle solutions in the mobility industry, you will realize that you can easily get started without any huge investment. With light assets at your side, you can easily kickstart your journey. For those, who are a young startup, you can start with a single vehicle and as soon as you start growing in the market, you can think of expanding your reach.
When you factor in the price, maintenance, financing, and repairs considerations, you will realize that after 15 years, electric cars will cost less than gas-only models.
For those, who are planning to buy electric vehicles, here is all that you want to know:
- Though upfront costs of electric vehicles are high as compared to gas-fueled cars, in the long term, these vehicles can justify their cost as it is going to be only a one-time investment.
- Electric vehicles can be charged at a home-based electric station, which removes the need to go and fill the fuel after every certain period of time.
- Experts believe that in the coming decades, the price gap between conventional and electric vehicles is going to shrink.
Synopsis: You might have to pay a one-time higher cost to purchase the vehicle. Post that, no further investment for gas stations (periodically) is required.
2) It asks for less maintenance
As compared to conventional cars and vehicles, mobility vehicles that are powered with electric modes are easy to maintain. They ask for low-cost involvement in maintaining the vehicle. If you are looking for low maintenance and high ROI as your ideal business strategy, go ahead with electric vehicles.
A recent study explains that as compared to gas cars, electric vehicle owners on average spend 60% less on maintenance of their vehicles. Because electric motors have fewer moving parts than internal combustion engines and don’t require fluid changes, it is generally assumed that maintaining electric cars (EVs) will be less expensive.
It explained why electric vehicles can be easily used for shared mobility patterns. With less maintenance required, they can be kept for longer use. Hence, for a young startup looking for good gear to start, think about choosing electric vehicles as a part of their shared mobility business idea and get earnings quickly.
3) It asks for less operational cost
Another big reason to get started with shared electric vehicles in the case of mobility startups is that these electric vehicles ask for less operational cost. The overall cost of adding variants and other vehicles in the business is quite less.
Industry experts have claimed that the running cost of an electric car is estimated to be a little over Rs.1 Lakh after 6-8 years, whereas the typical fuel-run would in total cost around Rs. 4.5 lakh. The per km cost for electric vehicles is around Rs 1.2- Rs. 1.4 per km and for gas vehicles, it is around Rs. 9/10 per km.
If you are a young startup and are looking for an approach where you need to invest less of your time, efforts, and cost in setting up and executing the business processes, think about getting started with the business protocol of adding shared electric vehicles in your tribe.
4) It has a high potential in the market
We all know that electric vehicles are new in the market. But still, there is a high potential market that needs to be tapped. The EV market is high and needs to be tapped smartly. Similar to electric vehicles, the shared mobility business also has a high potential.
The EV market is growing with a CAGR of 21.7% and is expected to see a sudden peak in the coming years. It clearly indicates the demand for Electric Vehicles in the market.
For a startup looking for a quick escalation and bringing better ROI, getting started with electric vehicles in a shared mobility pattern is a smart way to grow and exceed. In a very short period of time, it would be easy to achieve better and quick success.
5) It is future-ready
Electric vehicles are the future of the industry. The mobility industry is gearing up with the new adaptation of electric vehicles. If a startup moves toward choosing electric vehicles for their business model, they are clearly making their business ideology future-proof.
Electric cars are rated to have better performance and experience as compared to gas-fueled cars. In EVs, the only moving part is the engine; which makes it easier to achieve high torque and pick-up speeds.
On the contrary, conventional vehicles have more moving parts such as gears, clutches, and engines. This compromises the torque and pick-up speed of the vehicles in the longer run.
If you envision your mobility business staying in the market for years, think about electric vehicles. It will give you a chance to grow and sustain in the competition with better performance.
The above-stated reasons clearly indicate why mobility startups are moving toward electric vehicles and are open to trying their luck in this progressive market.
Why do you need technology to get started with your shared mobility business?
This is a very straight question about the requirements and the positioning of the business model in the market. For running the business remotely and bringing more potential business to your side, you might need to take help from technology. The tech will help in ensuring that all the processes are done with precision.
The tech will help in the following things:
- Getting the bookings: The shared mobility vehicle startups can own software that can help in taking care of incoming requests for bookings from the functional area. It will help in ensuring all the requests are taken care of with graded priority. It will also help in accepting and rejecting the requests as per the convenience and feasibility of the trip.
- Getting the location: The software will help in making sure the electric vehicles can easily reach the desired location. The navigation settings help in making sure that the ideal route is used for the travel.
- Getting the payments: The software also helps in making sure that post completion of the trip, as per the decided rate, the payment is collected and kept secure.
Jugnoo’s take on Electric Vehicles and shared mobility
Both the verticals are at growing verges and are there to sustain and stay in the market. We believe that there is a high scope and economic opportunities for the vertical to grow and bloom.
For any kind of tech support or customization in the processes, feel free to contact team Jugnoo. We are a team of software experts who are looking to help and empower young businesses to stay confident and complied with technology.
The final thoughts
The market has seen a sudden rise in the demand for electric vehicles among potential customers. If you are a young startup who is looking to expand its wings and grow in the competition, you can think of choosing the idea of launching your shared mobility business in collaboration with electric vehicles. There is a huge market to tap and if done right, you can be the next unicorn in the potential market.
