[AUTO] Who said dead? "Car sharing is here to stay"

[YaKuZa--BoSs]

Uncertainty and optimism intersect in the chat between CEOs of Free2Move, Pick & Drive and Wibble.

 

 

The vision that any observer may have about the present and the future of the shared car can be very out of focus under a downpour of conflicting news. On the one hand, the possible abandonment by Seat of the Respiro company came up due to the lack of present and future profitability that it observes in the business. On the other, the launch of U Go was verified by Leasys, the mobility and renting subsidiary of the FCA group, precisely when the details of its merger with PSA are finalized, which in turn explores the car-sharing business through by Free2Move. The companies of 'car sharing' return to operate badly than well after badly living in the black hole of the confinements by Covid-19. There are statements that continue to point out that this is the future of urban mobility (and beyond, Buzz Ligthyear would add) and others that believe that more twists and turns will be needed: political-administrative support.

In the midst of this gibberish, the media called the Boosters Group to a virtual seminar under the disturbing heading 'Is carsharing touched by death or does it just need to reinvent itself?' The guests to answer this question were top representatives of companies involved in the business in Spain: Carlos Blanco, CEO of WiBLE, Ignacio Román, CEO of Free2Move Iberia and Antonio Lleo, CEO Pick & Drive. Surely, they were not the predestined ones to decree the death of their activities. On the contrary, it was predictable that they would deploy a series of well-structured optimistic arguments as they did, while continuing to appreciate the difficulties and mists that surround car-sharing solutions at a time when every social order is somewhat out of place.

Starting at the end, Ignacio Román assures that "mobility is in fashion, it is necessary for everyone and it is part of our way of life. This complicated moment helps us to reflect and adapt to the new environment." Carlos Blanco explains this moment with the image that "a 'safety car' has come out and we are all at a very similar starting point, with which each company is going to give everything to be ahead. The EMT (municipal transport company in Madrid) has reduced its clientele by 70% and the private car has dropped by as much as 30%. Car sharing goes with uncertainties in the short term, but it has possibilities. "

KEY PIECE IN MOBILITY
Antonio Lleo summarizes that "carsharing is here to stay", but that "it needs support" and that it must come, because the administrations know that it is a "key piece" in mobility. "We do what we can, but for the moment the support is scarce and we are going to fight to get ahead and be sustainable."

 

 

Are we talking about profitability? "Our focus now comes from the vacancy of car parks, the management of which has been with Pick & Drive for almost 50 years. So, for it to work, mobility policies and establishing synergies between different car parks are necessary to gradually achieve growth "explains Antonio Lleo who believes that" many customers are already thinking that it is not worth having a car owned. " Pick & Drive makes Lexus cars available to its customers, which they collect and return in the company's car parks, although negotiations to extend it to companies and hotels are underway, as well as with the Madrid City Council.
"Profitability is a challenge," admits Carlos Blanco. "Even if you have great partners behind, it is not about investing 'sine die'. For Wibble, which has only been in existence for two years, it is more complicated. Other companies that have been operating in carsharing since 2015 are not profitable yet. We are in a market complex, with huge fleets and complex operations. I am confident that we will have the levers that allow us to be profitable. In the short term it will be difficult, and more so with this 2020, but we will assess the situation and act accordingly week by week or day by day. day". In this confusing time, initially with an expiration forecast, Wibble has extended its services and offers cars to its clients for long periods of three to 14 days. "But we hope to return to normal usage soon for minutes and hours."

 

 

Ignacio Román and the Free2Move platform have experienced profitability. "We were born in December 2016 and after two years we announced profitability, which has been reached in some months of 2019. We thought about improving the results in 2020, but the paediatrics has impacted the accounts. In any case, we are progressing and recovering and we believe We are on the right track. This year will be difficult, but we have the ambition to recover objectives and return to the path of sustainable results, "says the CEO in Spain of the platform sponsored by Grupo PSA.

 

 

None of the three consider that the business will decline. On the contrary, they detect signs that it will go further. "More than 91% of our clients confirm that they want to continue with Free2Move and see us as an alternative for mobility," reports Román, an optimist. Antonio Lleo also sees a possible "future expansion" of his business, although in his case several disadvantages must be overcome, especially the lack of infrastructure for plug-in vehicles. "We already have the car parks at 70% occupancy. And many customers already think about abandoning the car and that their mobility is due to car sharing, because parking is becoming increasingly difficult."

Lastly, Carlos Blanco believes that business development will be linked to innovation, which "will create greater business opportunities. Innovation with immediate impact, we cannot plan for 3 or 5 years, not even by quarters: everything is going much faster. We have focused on product, product and product. We have developed an update to the app with a greater choice of services. " The sale of minute packages is even proposed so that even "users can invite other customers and earn money."

Ignacio Román adds that Free2Move has already created a space in the PSA dealer network. Our company is sustainable, with 100 percent of electric cars, and now also comes the Peugeot e-208 electric. Our goal is to change the entire fleet by 2020 with the e-208. With its 340 km of autonomy it will allow us to offer other types of services. "

 

Edited June 24, 2020 by Dr.Drako
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