Cox has launched a new global mobility division that will include operations in the U.S., UK, Continental Europe, Canada and Mexico, the company said Monday.
Additional global markets will be added in the future, it said.
The global Cox Automotive Mobility structure will focus on four key business solution areas: Fleet Services, Fleet Operations, EV Battery Solutions and Emerging Ventures.
“Last year was a landmark year for Cox Automotive Mobility,” Cox Automotive president Steve Rowley said in a news release.
“We’ve built the global tools and engine to power our clients’ growth across borders, enabling dealers, automakers and fleet customers to capitalize on business opportunities only Cox Automotive can provide within our fully-integrated Global Mobility architecture,” Rowley said. “As our partners race toward an ever-changing mobility future, we’ll be there to lead them.”
Joe George will continue to lead Cox Automotive Mobility as president, where he will head up both the overall strategy of the global division and lead U.S. operations.
Meanwhile, the company has appointed Paul Humphreys to be managing director of mobility for Cox Automotive International. He will focus on operations outside the U.S.
“The opportunities for organizations operating in fleet and consumer transport are limitless,” George said in the release.
“By combining the scale and expertise of one global vision, with bespoke market-led data and insights, we are enabling a safer, cleaner and more connected transportation ecosystem with operational efficiencies that can be realized for our partners worldwide.”
George joined the Auto Remarketing Podcast to explain what the new global structure of Cox Automotive Mobility will entail, as well as details on the four focus areas and how the international mobility market compares to the U.S.
“Our international operations have been a part of our business for a long time, and I think that our clients really have expressed an interest in some of the services we provide in our mobility group," George said in that interview.
“And so, we've made a few acquisitions internationally: Spiers New Technologies and FleetMaster. … We really knitted this together to follow our clients who operate across global markets and their desire to have one provider who can help them as they move (into) or are already in other countries.”
More details on the impact of this move can be found in the podcast below.
Just after announcing its expansion into Brooklyn last week, on-demand car service company Kyte announced a $30 million Series A funding round led by Park West Asset Management and Sterling Road.
Leadership of Kyte — who bring together experience and backgrounds from Uber, McKinsey and BMW — said the funding is going in part toward its "ultimate goal of enabling teleoperation and fully autonomous vehicle delivery," specifically to be used for product development, geographic expansion, and growth across new product lines.
This latest round of funding for Kyte bringing total capital raised to more than $40 million.
How do Kyte's services work exactly? The on-demand car service aims to put people in vehicles as long as they need them, giving them another option besides car rental servies, peer-to-peer car sharing services, and traditional car leases.
"We envision a world where people living in cities don't own cars and streets aren't clogged with parked cars; space is used for a better purpose, and the freedom of personal mobility is enabled by Kyte," said Nikolaus Volk, co-founder of Kyte, in the press release announcing the new round of funding. "We're building the infrastructure for an autonomous future where cars travel from fleet hubs to the people who need them, when and where they're requested."
Kyte's on-demand cars are currently delivered by people and are availalbe in Boston, Brooklyn, Chicago, Los Angeles, Miami, New York City, Philadelphia, San Francisco, Seattle, and Washington, D.C.
"Kyte is a magical experience compared to traditional car rentals; my family relies on it and that's what first made me so excited about this investment," said Ash Rust, managing partner of Sterling Road. "The Kyte team has a wealth of experience, which has been reflected in their incredible revenue growth over the last few years. We're excited to support them now and long into the future."
In addition to Park West Asset Management and Sterling Road, Kyte's Series A round saw participation from new and existing investers, including DN Capital, Amplo, 1984 Ventures, FundersClub, Moving Capital, Rosecliff Ventures, Seraph Group, Unpopular Ventures, Urban Innovation Fund, and the founders of German transportation company FlixBus.
The future of mobility continues to evolve at a blindingly fast pace. Kyte — which first launched in Manhattan in May — is expanding its on-demand car services to the Brooklyn area.
The service will now be available to the Brooklyn neighbornhoods of Bedford-Stuyvesant, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Fort Greene, Greenpoint, Ocean Hill, Park Slope, Prospect Heights, Red Hook, Weeksville, Williamsburg and Windsor Terrace.
Get Spiffy is based in North Carolina, but the on-demand car care, technology and services company is gaining momentum in an adjacent state.
On Wednesday, the company announced the launch of its latest franchise location in South Carolina. The Greenville franchise opened for business on Tuesday and offers mobile car wash, detail, and oil change services to the Upstate region.
In addition to opening for business in Greenville, Spiffy highlighted in a news release that the South Carolina franchise ownership group has plans to expand throughout the state — including Columbia and Charleston — in the weeks and months to come.
“Our foray into franchising has been a wild ride so far and it’s thrilling to see a group of four energetic entrepreneurs banding together to bring Spiffy to South Carolina,” Spiffy chief executive officer Scot Wingo said in a news release.
Among the group’s co-owners is Paul Clark, managing director at VentureSouth, who invested in Spiffy during a fundraising round back in July 2018.
The company said Clark, Dan Haight, as well as Steve and Connie Lanzl, had their interest piqued by the reveal of Spiffy’s franchising model last July and came together in January to officially sign on as the South Carolina franchise group.
Together, Spiffy pointed out that they are fierce boosters of the Palmetto State, having collectively spent decades living in Greenville and working with local entrepreneurs.
“Greenville has evolved into something that people write about and are deliberately moving to for all sorts of terrific reasons. It’s become a place to be with a growing entrepreneurial community,” Connie Lanzl said. “I think that introducing something new to Greenville and across South Carolina has excited me the most as we prepare to launch these franchises.”
According to the news release, what stood out to the four co-owners was Spiffy’s dedication to innovative car care in a way that positively impacts customers. Rather than dedicating a chunk of time to bring their vehicle into a traditional car wash or oil change shop, car owners can request services at their convenience for their home, workplace or fleet.
Spiffy explained that each service is completely zero-friction, which eliminates the need for customers to coordinate with customers outside of the Spiffy smartphone app.
“To potential franchisees, I would offer my wholehearted endorsement to give it a whirl. It’ll certainly keep you busy, there’s much work involved, but it’s already been an eye-opening experience,” Clark said. “In my opinion, you wouldn’t find a franchisor in any other context as committed to helping the franchisees succeed and providing any advantages to be successful in a new market.”
Since its founding in 2014, Spiffy has expanded from a small mobile car wash and detail startup in Raleigh to provide a multitude of convenient maintenance services for car owners and fleets across the country.
Wingo described his experience working with this quartet to launch Spiffy in South Carolina.
“Paul, Connie, Steve, and Dan have been delightful to work with since our first interactions through VentureSouth. We’re looking forward to helping them succeed as they launch our latest franchise locations,” Wingo said.
Customers looking to bring Spiffy’s mobile maintenance to their home, office, or fleet can visit https://www.getspiffy.com to book their first service.
Tractica, a market intelligence firm that focuses on emerging technologies, sought to answer seven questions dealerships and other parts of the automotive industry might have as Mobility as a Service (MaaS) programs gain momentum.
A new report from Tractica released on Wednesday indicated that MaaS is providing greater accessibility at similar or lower cost to owning a vehicle, empowering people to give up or delay vehicle purchases and rely on shared vehicles for their commute and leisure travel needs.
The firm acknowledged the global population is moving into and near cities, with the majority of people now living in urban areas. This closer proximity between where people live, work and play is putting a strain on transportation infrastructure and transit systems, according to Tractica, which considered seven questions:
— How will MaaS programs compete with and complement each other to provide a full suite of mobility service options?
— What regional differences have created varying demand for MaaS around the world?
— How will market maturity affect demand for emerging electric two-wheel shared vehicles?
— How has the regulatory environment reacted to the mostly unfettered entrance of MaaS within the urban core?
— What decisions will MaaS operators have to make to reach profitability?
— How will the trends in personal vehicle ownership affect demand for MaaS?
— What are the limits to growth for each MaaS category?
“A metropolitan area with a coordinated set of transit options and MaaS has the potential to alleviate traffic congestion, reduce traffic accidents and fatalities, enhance accessibility, lower carbon emissions and provide an improved experience for pedestrians and cyclists,” Tractica senior analyst John Gartner said in a news release promoting the report.
Tractica went on to note that applications that can enable travelers to compare these services from their mobile phones, such as Trafi or UbiGo, will be of growing importance in enabling consumers to rely on MaaS. Tractica expects the global market for MaaS to grow at a compound annual growth rate (CAGR) of 24.0% to become a $563.3 billion market by 2025.
Tractica’s report, Mobility as a Service, highlights how MaaS programs such as carsharing and ride-hailing are reaching maturity in their breadth of offerings and business models while two-wheel vehicle sharing and vehicle subscription services are still in their infancy.
The report contrasts the competitive advantages and limitations of each MaaS category and highlights the major regional and global players.
Tractica said its report also provides global and regional 2019-2025 revenue forecasts for ride-hailing, carsharing, vehicle subscriptions and shared e-scooters and e-bikes.
Ridesharing company Hitch says that for people who don’t own a car, those are pretty much the only options for long-distance travel between most American cities.
After Hitch’s announcement last week that it is expanding its service to Dallas, people can now use the Hitch app for a new transportation option to travel between Austin and Dallas.
Hitch, which is an Austin-based startup that says it brings comfortable and affordable on-demand shared car rides between cities, already offers service between Austin and Houston, so Dallas will be the third Texas city that it supports.
Explaining how its service between Dallas and Austin works, Hitch said pricing for service is $35 per seat for riders. Or, for riders who want a private car, the price is $105.
Hitch said that in as little as 30 minutes before they need to travel, Hitch users can use the app to book rides on-demand. Or, they can book rides a day in advance. Once booked, rides on Hitch are guaranteed.
Passengers meet their drivers and get dropped off at Hitch “stations,” which are public locations such as coffee shops. Then, riders can use public transit or other local ridesharing options to continue on to their final destinations.
Hitch says more than 80% of its first-time riders have become repeat customers since the launch of its platform earlier this year.
In 2020, the company intends to expand to additional markets nationwide.
“Expanding to Dallas was a logical extension of our Austin-Houston route, and many of our members were asking for service to and from Dallas, especially with major events like the Texas-Oklahoma game and the Austin City Limits Music Festival happening in Austin and Dallas in the fall,” Hitch co-founder and chief executive officer Kush Singh said in a news release.
Singh continued, “If you’re driving between Austin and Dallas, you can make money without any additional driving from the empty seats in your car. We are giving people a convenient, safe, affordable option to travel between cities and make money from the empty seats in their vehicle that has never been done before.”
In part because of what Mark Seng of IHS Markit describes as better technology and overall vehicle quality improvements, the average age of U.S. light vehicles in operation is back on the rise.
According tonew research from IHS Markit, the average age of U.S. light vehicles in operation has increased again this year to 11.8 years.
For insight into the average age acceleration, just look at the last 17 years. The average age of light vehicles in the U.S. increased by 3.5% from 2002 to 2007. That increase shot up, however, to 12.2% from 2008 to 2013. The average age increase has returned to its more traditional rate over the last five years with a 4% rise during that time.
“The 40% drop in new-vehicle sales due to the recession created an acceleration in average age like we’ve never seen before,” said Seng, who is director of the global automotive aftermarket practice at IHS, in a news release. “In the last couple of years, however, average age has returned to its more traditional rate of increase.”
IHS Markit says the overall light vehicle fleet continues to grow, with U.S. light vehicles in operation hitting a record level of more than 278 million. That represents an increase of more than 5.9 million, or 2.2%, since 2018 and also represents one of the U.S. auto industry’s highest annual increases since IHS Markit began tracking vehicles in operation, or VIO, growth. That number is also second only to the 2.3% growth in 2016.
“The increasing VIO fleet is providing a robust new business pipeline for the aftermarket,” Seng said. “A larger fleet means more service and repair opportunities in the future.”
IHS Markit’s analysis, for the first time, included a review of various regions around the country. That review showed that light vehicles are not aging consistently across geography or segment. The Western U.S. includes the oldest light vehicles, at 12.4 years. The Northeast, at 10.9 years, shows the youngest light vehicles, according to the study.
The study also shows that across regions, the light vehicle fleet is not aging at the same rate. In the West from 2018 to 2019, light vehicles increased 1.5%. But they increased by only 0.4% in the Midwest.
The state with the oldest average age of light vehicles? Montana, with an average of 16.6 years. The youngest? Vermont, with an average light vehicle age of 9.9 years.
The popularity of light trucks, including CUVs and SUVs, has grown, and because of that, U.S. vehicle age is on the rise at different rates across vehicle segments. The average age of passenger cars increased 2.2% from 2018-2019. But during that time, light trucks aged at a rate of just 0.1%
But IHS Markit says as the fleet ages, the shift in vehicles in operation creates new opportunities. One of those opportunities is for the automotive aftermarket, according to the company.
The shift among various age categories is important to those who manage inventories of required parts and plan for sales and service activity accordingly, IHS Markit said. For that reason, those groups continue to closely monitor that measure.
IHS Markit also indicated that the shifting dynamic of the age of vehicles in operation means that from 2018 to 2023, the volumes of new- to 5-year-old vehicles will grow 2%, and during that same period, vehicles in the 6- to 11-year-old range will grow 27%. The company says that because it points to a growing repair “sweet spot” – or growth in the vehicles which drive the most repair opportunities, that is a positive trend for the independent aftermarket. However, 12- to 15-year-old vehicles will see a 27% decline over that time, the company said.
“While the decrease in light vehicles 12 to 15 years of age looks alarming, it relates to the drop in sales due to the recession,” Seng said. “There is simply a lack of 2008- and 2009-model-year vehicles due to the lower sales numbers during that timeframe. Even the model years from early in the recovery are lower in number. This disruption simply needs time to work its way through the fleet.”
IHS Markit sees a positive trend for the aftermarket repair industry with the oldest light vehicles on the road. Those older cars and light trucks are seeing fast growth, as vehicles 16 years and older are expected to see 22% growth 2018-2023. In 2023, those vehicles are projected to reach 84 million units. However, in 2002, fewer than 35 million 16-plus year old vehicles were on the road.
For automotive aftermarket companies focused on repairing the vehicles on the road today, and into the future, this aging fleet is a great trend, according to IHS Markit. But it will be important for the industry to understand the impact that trend will have on those service opportunities. Instead of a sale to the first or second owner of the vehicle, it might be a third, fourth or fifth owner.
IHS Markit sees branding and pricing strategies for “good, better and best” products and services increasing in importance as the consumers consider the age of the vehicle in deciding how much they are willing to pay for a needed repair.
The mobility options and technology in the auto industry can sometimes feel like they’re moving faster than the cars themselves.
That’s why Kelley Blue Book has launched a new website designed to get consumers up to speed.
The site, called Ride, is designed to shed some light on topics like ride-hailing, car-sharing, subscriptions, micro-mobility, electric vehicles and autonomous cars.
“Consumers are clearly interested in new methods of transportation that provide more efficient, affordable or convenient alternatives to their current Point A to Point B travel needs, but with technology moving so fast, it's difficult to keep up,” Kelley Blue Book executive publisher Karl Brauer said in a news release.
“Ride by Kelley Blue Book offers thoughtful content that cuts through the clutter to keep consumers up to speed on the mobility services that best fit their lifestyle,” Brauer said.
The site features editorial and video content from automotive reporters and analysts. It includes sections dedicated to these respective topics:
Electric & Hybrid
Self-Driving
Mobility Lifestyle
Best Rides & More
Additionally, lifestyle contributors will also collaborate with Ride on content. For example, Ride has lined up actress and TV correspondent Alison Haislip to host video features for the site.
There also are plans for tools and calculators on the site for consumers to match the mobility options with their needs.
A giant in the rental-car space is now jumping into the vehicle subscription game, too.
Enterprise Holdings, parent company to the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, is launching what it says is the first subscription service offered by the U.S. car-rental industry.
The debut of this service is expected within the next month, the company said in a news release Wednesday, and plans to launch it initially in three states, with eventual expansion throughout the country.
“The name of the game in ground transportation today is more access, more flexibility and more convenience — whether it's for an hour, a day, a week or longer,” Enterprise Holdings executive vice president of operations Randal Narike said in a news release.
“That means Enterprise is closely evaluating every possible option, from vehicle-subscription services and award-winning digital apps to autonomous technology and artificial intelligence,” Narike said. “We will be starting in three states, to allow sufficient time to study vehicle-subscription services and consumer preferences. When it launches throughout the U.S., the service will be fully vetted and specifically designed to meet evolving consumer needs.”
Enterprise will enter a space already populated — in some form, fashion or combination of — by dealers, automakers and third-party providers.
Of course, those programs can be as divergent as the companies themselves. As for Enterprise’s platform, customers will pay a monthly subscription fee and chose from the following segments: full-size sedans, premium sedans, small SUVs, midsize SUVs, small trucks and medium trucks.
Users will be able to exchange vehicles as much as four times each month, with services like physical damage and liability coverage, maintenance, registration, roadside assistance and Sirius XM radio when available.
More than 20 makes and models will be included.
“Our new vehicle-subscription service will offer consumers another innovative mobility alternative, without the long-term financial burden or commitment typically associated with traditional leases or purchases,” Narike said.
Though this is the first subscription platform from Enterprise, the company is no stranger to the tech and mobility space. It has a partnership with General Motors to add more connected vehicles to the Enterprise fleet, along with using tablets at the rental counters to digitize rental transactions.
Other ventures include its purchase of mobile and cloud software tech provider Deem; its partnership with Voyage around autonomous driving tech and sensor tech; and the nearly $2.4 billion it has spent in the past 11 years on global acquisitions and corporate-venture capital investments or commitments, including purchases of rental companies, car-sharing operations, tech platform and franchises.
“Enterprise Holdings continues to succeed in the highly competitive mobility sector because we understand how and where customer service and innovation intersect,” Narike said. “Introducing new programs like vehicle subscription is just one more example of that mindset.”
PSA North America’s Free2Move Carsharing Services launched late last year, calling itself a “free-floating carsharing company” in Washington, D.C. with no reservations required. Users can end their trip at any metered or residential parking area, and insurance and gas are included.
The company said on Wednesday that it has reached a new milestone: 10,000-members.
PSA’s Free2Move Carsharing Services was PSA North America’s first customer-facing venture in the United States. The company now operates 600 vehicles —including 200 Chevy Equinox vehicles and 400 Chevy Cruze sedans — and said in a news release that it has begun collecting “exclusive intelligence” with a goal of expanding into new markets.
PSA North America president and chief executive officer Larry Dominique said in a news release that the company fleet will eventually expand to Peugeot-branded vehicles.
Free2Move Carsharing is an extension of PSA’s global Free2Move brand, which operates a 65,000-vehicle fleet of cars, scooters and bikes and provides mobility services in 12 countries to more than 1.3 million customers.
“Our progress to date is the direct result of Free2Move’s investment in the Washington DC community, in terms of on-the-street mobility services for members as well as our team of unique and diverse employees,” Free2Move chief executive officer and president Michel Stumpe said in a news release. “We’re proud to have successfully extended PSA’s global Free2Move brand to North America.”
Free2Move Carsharing said that its fleet caters to the city commuter and the weekend traveler. The company said its “free-floating” business model means its vehicles are strategically positioned on city streets, as opposed to “station-based” vehicles located in parking lots and garages.
That free-floating positioning means consumers have more convenient and efficient access to Free2Move vehicles, according to the company. That saves customers time and money associated with transitioning in and out of the vehicles, the company said.
Free2Move said it is seeing increased brand awareness among consumers seeing the vehicles. Those consumers can more quickly visualize how the vehicles’ convenient locations can help their mobility needs, according to the company. Sourcing its survey data, Free2Move said almost 70 percent of its registered members first learned about Free2Move from seeing vehicles on the road.
“As the first customer-facing service for PSA in North America, our efforts to meet customer expectations in this relatively new mobility space is imperative,” Dominique said.
