27 September 2011

The end of motoring

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Highly recommended read in The Guardian on the end of the golden age of motoring (or for non-Brits: car travel):

“The most radical change [according to German entrepreneur Stefan Liske] is that “in big societies, there is a huge status shift happening, where we are losing the idea that you use a car to define your status. So the industry needs more flexible leasing, financing and car-sharing models. And second, they have to find new revenue streams.

The near future that Liske describes echoes the computer industry’s earlier shift from a business model based on hardware to one based on software. “Audi and Toyota have just invested $1bn in wind energy. If you’re leasing a car from them, they can sell you the energy – or they go in a different direction like BMW, who just invested $100m in start-up companies offering transport-related mobile services.”

Underpinning all these innovations and ideas is what Liske sees as a major behavioural shift among the generation of “digital natives”. “They don’t care about owning things. Possession is a burden, and a car is a big investment for most people – not just the vehicle, but the permits, the parking space.”

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