transportation & car business in usa, nov 10, 2015

Transportation&CarBusinessinUSAOverview,Events&OpportunitiesHartti SuomelaNovember10,2015

TransportationLandscapeinUSA

• Transportation/TransitlandscapeismuchmorefragmentedinU.S.thaninFinland– Regulationonfederal,stateandmunicipalitylevels– Serviceprovidersandotherplayersareamixoffederal,stateandmunicipalitylevelactorsinadditiontomanycommercial(private)organizations

• Publictransportationowned,constructedandmaintainedbylocal&stategovernments– Biggestexception:(Federallyowned)Amtrak

• AverageAmericanspends101minutesperdaydriving(HarvardHealthWatch,2013)• AverageAmericancommuterspends38hoursyearlystuckintraffic– InWashingtonD.C.,LosAngelesandSanFranciscotheaverageisover60hours!

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DrivingStillDominates:MethodsofCommutinginUSA(2012)

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Driving86.1%

Publictransportation5%

Walking2.8%

Other(incl.biking)1.7%

Workfromhome4.3%

SomeU.S.CarIndustryNumbers

• Thereare1.3people (including everyone) foreverycarinU.S.(Ward’s study2011)– About240millioncarsinU.S.

• Totalvehiclesalesin2014inU.S.:16.5million• 90,000-120,000plug-invehiclesweresoldinU.S.in2014(lessthan1%ofallsales)– NissanLeafthemostcommon:30,000+

• Costofowningandoperatingacarisabout$8,700annually(typicalsedan,15,000miles)– Hasdecreasedslightlyduetodeclinesingaspricesandfinancecharges

• 32,719peoplediedinmotorvehiclecrashesintheUSin2013(estimatedeconomiccostof$242B)– TrendisupL

• Self-drivingcarsareestimatedtobean$87Bopportunity

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CompaniesNotNamedGoogleWorkingonAutonomousCars

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CarIndustryAcrosstheU.S.

• TheU.S.autoindustrycapitalisstillDetroit,Michigan• Belowthestatesarerankedbythetotalnumberof jobsperstate

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SiliconValley&CarIndustry

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NewandEmergingPlayersinSmartTransportation(smallselection)

• Ondemandrides:Uber,Lyft,Cabify,RubyRide (,Gett,Hailo,Yaxi,uniCabs,Flywheel)• Ridesharing:(Uber, Lyft),RelayRides,RidePal,Hitch,Zagster (bicycles),Sidecar,Ridescout,WeCarpool,Sunyride,SplitTechnologies (acquiredFinnishAjelo /Kutsu+in2014),Arrive

• Urbanmasstransit:LeapTransit,Wundercar• Parkingimprovements:VoicePark,Luxe,ParkWhiz,ValetAnywhere,ParkAround,Smartpark

• Carconnectivity:Vinli• Singlepersontransportation: (Segway),Onewheel,motorizedskateboards, scooters,• Motorized/Electricbicycles:FaradayBicycles,ScootNetworks,LightningMotorcycle,KarmicBikes

• Transitplanning:Transitmix,Mozio,Zendrive,Roadify,Geniusly,Arrive.by,Placemeter• ChargingSolutions:EVConnect• Intelligentpublictransitrouteplanning:GoogleMaps,Hopstop, Nextbus

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Turo

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StartupsUnbundlingtheCar

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Source:https://www.cbinsights.com/blog/startups-drive-auto-industry-disruption/

VCInvestmentstoAutoTechnology

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WhereInvestmentsAreDone?

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WhoAretheMostActiveInvestors?

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WhereCarCompaniesAreInvesting?

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Source:https://www.cbinsights.com/blog/auto-industry-startup-investing/

USAtradeshows2016

• TUConsumerTelematicsShow, January5,LasVegashttp://www.tu-auto.com/cts/• CES,January6-9,LasVegas,http://www.cesweb.org– Carsgetmorevisibilityeveryyear(carareaforCES2016soldout fast)– Allmajormanufacturerspresent

• TUAutomotive Cybersecurity,March29-20,Detroithttp://www.tu-auto.com/cyber-security/

• TUAutomotive Detroit,June8-9,Detroit,http://www.tu-auto.com/detroit/• ConnectedCarExpo,Novemberhttp://connectedcarexpo.com/

• Others– Renesas Devcon,http://renesasdevcon.com/– ConnectedTransportation (simultaneously withIoT Evoluton)– notworthit

OtherTopicsofInterest

• Developerofferings– Hackathons,forexampleToyotahttp://toyota-itc-hackathon.devpost.com/– Developerprograms,forexampleFordhttps://developer.ford.com/ andGMhttps://developer.gm.com/

– OEMtechincubatorprograms, forexampleJaguarLandroverhttps://www.jlrtechincubator.com/

– Techstars Mobilityhttp://www.techstars.com/programs/mobility-program/• PartnersincludeFordMotorCompany,MagnaInternational,VerizonTelematics,DanaHoldingCorporation,HondaR&DAmericas,andMcDonald’s

• Sourcesofinformation– FutureofTransportationWeeklyhttp://tinyletter.com/transportation– Meetups, likeConnectedCarSF– WebsiteslikeLogisticsManagementhttp://www.logisticsmgmt.com/ ,ConnectedCarTechhttp://www.connectedcar-news.com/ andothers

– CBInsights,PitchBook,Mattermark,etc.

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Opportunity:ElectronicLoggingDevicesforTrucking

• NewrulefromDepartmentofTransportation(DOT)– Truckersneedtodigitallyrecordthehourstheydrive– ElectronicLoggingDevices(ELDs)– 2yeargraceperiodexpected– Finalrulingcominganydaynow(hasalreadybeendelayedacoupleoftimes)

• Thisnewrulingwillestablish– Minimumperformanceanddesignstandardsforhours-of-service(HOS)electronicloggingdevices(ELDs)

– RequirementsforthemandatoryuseofthesedevicesbydriverscurrentlyrequiredtoprepareHOSrecordsofdutystatus(RODS)

– RequirementsconcerningHOSsupportingdocuments– MeasurestoaddressconcernsaboutharassmentresultingfromthemandatoryuseofELDs

• Recentrelatedactivityinthestart-upscene– KeepTruckin received8Mfunding– TruckTrack graduatedfrom500Startupsaccelerator

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KeyFeaturesHoursofService(HOS)Products

• Tablet– TypicallyAndroid,support formosttablets,fixedorportable,from$80to$500– ELDsupport eitherthroughwiredorwirelessconnection– Fullycompliantandself-certifiedbyvendor– Electroniclogsandinspectionrecords(includingcamera)certifiedbydriver(tabletsignaturecapture),abilitytoeditwithfullauditcapabilities

– Prior7-dayPDFretention,abilitytodisplayoremailtolawenforcementwhenstopped– Warningofpendingoractualviolations– Mixandmatchdrivers,tablets&vehicles– Easytouse,on-screendocumentation

• Portal– Back-officesupportviewingdrivers,status,logs,edits,mobileworkorders,andcommunications,datastorage

– Fullysyncedwithtablet– APIstoexternalfleetsystems

11/10/15 ©Finpro21 LoanedfromapresentationatIOTEvolution

OtherPotentialOpportunities

• MobilityasaService-discussionsstillon-goingwithPaloAlto/JointVentureSiliconValley• EVcharging– Teslahasbuiltquiteextensivechargingstationnetwork,butotherwiselandscapeisfragmented– SomeFinnishcompaniesarealreadyactivelylookingintothis

• Ajelo/Kutsu+systemcouldgrowaspartofSplitTechnologiesoffering– Note:Ridesharingfieldiscrowded

• Dataanalysis/back-endsystemsfortrafficmonitoringandorchestration• Carsecurity

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• http://cds.frost.com/p/70019/#!/ppt/c?id=NEE8-01-00-00-00&hq=telematics