The relationship between people and their cars is well documented, ranging from casual neglect, to family asset, to most important thing a person can own. Most people have chosen their vehicle based on a combination of rational attributes such as safety, economy, reliability, and emotional beliefs about the car related to self-esteem and lifestyle aspirations. Car ownership in most societies had become a sign of independence, affluence and freedom. In some it is an intimate part of coming-of-age. Importantly, the actual driving experience (and by association that of the passengers) has been an integral part of the story.
However, those relationships are about to undergo one the biggest shifts in automotive history. Through changing the ownership and interaction paradigms, Uber, Didi, Google and dozens of other firms are about to break a century-old model.
In yesterday's terms, a car was as much about 'who I am' as 'what I need to accomplish'. The badge, style and colour spoke for our achievements and aspirations in life. They described visibly who we were and how far we had come. Most often, the 'job to be done' - apart from getting from point A to B - was secondary. The person buying the premium brand SUV with the large trunk capacity, extra towing rating and roof racks was likely to never take the car off-road. He still anchored himself in the belief matrix of the brand: the quality off-roader, adventurous, daring, ready to be challenged. I should know - I bought a jeep!
This is all changing rapidly. And the villains are in plain sight. Ridesharing and autonomous vehicles are evolving the relationship between people and cars in a profound way through reframing how people experience motor vehicles. Two key trends are already well into disrupting the car market.
One: Rideshare models reduce the rational need for your own car
Most of us are very familiar with the ‘Uber model’. Uber upended the concept of car ownership by connecting people who needed to get from one place to another with car owners who had spare capacity (in the form of a car and time). And while Uber has evolved the behaviour of people who previously took cabs, they have also struck a massive blow to taxi companies around the world. Most importantly, Uber and others like Didi are reframing the concept of car ownership.
Ride share services have eliminated a rationale driver for car ownership by providing people with a low cost per trip alternative with the right level of customer experience. This has laid the groundwork for a significant decline in car ownership over time - both in absolute terms in mature markets, and in terms of the rate of penetration in emerging markets. People can get from A to B more easily and cost-effectively than ever before. And Uber customers don't worry about where to park, cleaning their car, maintenance, insurance or fuel. As the safety-convenience-reliability-value equation continues to shift in favour of Uberesque models, the rationale imperative to own a car will decline. Do you know anyone who has given up car ownership based on using rideshare services? What about ‘new drivers’ - teenagers who traditionally raced to get their license, now ‘leaving it till I really need it’?
Two: Autonomous vehicles will unlock new ways to use and enjoy cars that reshape our basic relationship with them
Automation will play a significant role in this rebalancing of the rationale attributes: driver-less cars will be (eventually) perceived as safer as there are no potential assailants arriving in your next car, and computers will reduce the costs by removing the human labour component, reducing insurance premiums and keeping the cars rolling 24/7. While the rationale considerations are interesting, the emotional considerations and the reframing around what a car means is fascinating.
It's possible that the ‘Sheer Driving Pleasure’ of today becomes the ‘Only Alone Time’ of tomorrow
As the driver is removed from the driving experience with the introduction of autonomous vehicles, the emotional connection between driver and machine will start to change. This part is critical. Pretty much every car company uses 'the driving experience' in some way to position their brand and entice customers into consideration. Today's ‘sheer driving pleasure’ (BMW) will need to be rethought in terms of the relationship with the product. New driving paradigms will emerge - people will sleep, eat, converse, read, practice guitar, play games and watch movies. Their whole engagement framework with cars will change. It's possible that the ‘Sheer Driving Pleasure’ of today becomes the ‘Only Alone Time’ of tomorrow as the tactile experience of hands on driving is replaced by the me-time relaxation of a machine safely conveying us from home to work.
And we haven’t even talked about the changes in the underlying car platform - the shift from combustion engines to electric engines. Did you know that an electric car engine has about 1/200 the number of parts of a combustion engine and can last about 4 times as long?. The ramifications for parts makers, supply chains and service stations are enormous.
There is little doubt that we are only starting to see the early signs of change in this space, but one thing is for sure: as our experiential relationships with cars starts to change those companies who understand and adapt fastest to the new paradigms will have the best chance of success. How car experiences of the future are crafted and unfold will be fascinating to watch.
Cyrus Allen is a Founding Partner at CapFeather Global with more than 2o years of corporate experience locally and internationally with Ericsson, Sony Ericsson, Telstra and ANZ, together with nearly 8 years senior consulting and advisory Customer Strategy and Customer Experience Innovation. He has held three non-executive board directorships and has been involved in start ups in the aged care and delivery technology sectors.