Mobility driving B2B world
Frost & Sullivan has predicted that new mobility models and digitalisation will cause significant disruption for the B2B world, particularly the fleet and leasing sector.
Speaking at the Leasing Forum 2018, in Warsaw Poland, Mubarak Moosa, director, CEE at Frost & Sullivan, said that a new ecosystem of shared mobility is emerging, with customers demanding intuitive services. He said that company car leasing is only one of multiple mobility solutions available in the market. Quite a few innovative and flexible mobility solutions are posing fierce competition to the fleet leasing industry, which should be treated as an opportunity by the industry participants.
He added that digitisation is changing the way vehicles are financed by making the process faster, safer and user friendly, with all financing arms of OEMs working on Fintech, Blockchain and P2P solutions leveraging digital platforms.
Erik also said the EV leasing is gaining traction in Europe in the recent years, where it is not only about offering lease of an electric car but an integrated solution comprising of battery and charging infrastructure as a part of the package. EV leasing is expected to grow 15.4% in 2018 hitting a sales volume of 142,000 units in Europe. OEMs will shine as they focus on selling EV lease contracts directly to customers rather than selling outright.
Another topic covered by Erik was shared mobility. He said that Frost & Sullivan’s recent corporate mobility survey showed that although company car is still king in the short term, the highest levels of future interest amongst businesses were for corporate car sharing and carpooling.
Private leasing is also a growing trend. Evolution of private leasing started with OEMs putting their surplus stock to market without disturbing the retail market. It started as a financial lease, and it is now offered as a full-service operating lease product.
Meanwhile, Erik also said that data monetisation was an opportunity. With access to over 200 data points from a car, leasing companies and car manufacturers now have the ability to create new revenue streams by monetising the data. Bartering, brokering and business intelligence are the key business models widely used across the industries. For example, Renault Nissan alliance partnered with technology firm The Floow to deliver vehicle generated data to Insurance companies, enabling User Based Insurance premiums