IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v154y2020ics0040162518318213.html
   My bibliography  Save this article

More friends than foes? The impact of automobility-as-a-service on the incumbent automotive industry

Author

Listed:
  • Wells, Peter
  • Wang, Xiaobei
  • Wang, Liqiao
  • Liu, Haokun
  • Orsato, Renato

Abstract

This paper examines the scope for network platform business models offering ‘automobility-as-a-service’ to disrupt the existing automotive market and industry. The paper uses three examples (Getaround, BlaBlaCar and Uber) to illustrate distinct versions of the network platform business model concept. Despite expectations that automobility-as-a-service, enabled by digital platforms, may erode the market for new cars and the existing model of individual car ownership, the paper argues that it is not necessarily disruptive to the incumbent automotive companies. Rather, network platform business models via automobility-as-a-service are argued to be one mechanism by which the primacy of the car may be retained. In turn this has important implications for the durability of the automotive industry, and of the unsustainable aspects of platform business models.

Suggested Citation

  • Wells, Peter & Wang, Xiaobei & Wang, Liqiao & Liu, Haokun & Orsato, Renato, 2020. "More friends than foes? The impact of automobility-as-a-service on the incumbent automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    • Handle: RePEc:eee:tefoso:v:154:y:2020:i:c:s0040162518318213
    DOI: 10.1016/j.techfore.2020.119975
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162518318213
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2020.119975?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ruutu, Sampsa & Casey, Thomas & Kotovirta, Ville, 2017. "Development and competition of digital service platforms: A system dynamics approach," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 119-130.
    2. Casprini, Elena & Di Minin, Alberto & Paraboschi, Andrea, 2019. "How do companies organize nascent markets? The BlaBlaCar case in the inter-city shared mobility market," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 270-281.
    3. Amir Sasson, 2008. "Exploring Mediators: Effects of the Composition of Organizational Affiliation on Organization Survival and Mediator Performance," Organization Science, INFORMS, vol. 19(6), pages 891-906, December.
    4. Berggren, Christian & Magnusson, Thomas & Sushandoyo, Dedy, 2015. "Transition pathways revisited: Established firms as multi-level actors in the heavy vehicle industry," Research Policy, Elsevier, vol. 44(5), pages 1017-1028.
    5. Huemer, Lars, 2012. "Unchained from the chain: Supply management from a logistics service provider perspective," Journal of Business Research, Elsevier, vol. 65(2), pages 258-264.
    6. Barbe, Anne-Sophie & Hussler, Caroline, 2019. "“The war of the worlds won't occur”: Decentralized evaluation systems and orders of worth in market organizations of the sharing economy," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 64-75.
    7. Hung-Hao Chang, 2017. "The Economic Effects Of Uber On Taxi Drivers In Taiwan," Journal of Competition Law and Economics, Oxford University Press, vol. 13(3), pages 475-500.
    8. Fjeldstad, Øystein D. & Becerra, Manuel & Narayanan, Sathya, 0. "Strategic action in network industries: an empirical analysis of the European mobile phone industry," Scandinavian Journal of Management, Elsevier, vol. 20(1-2), pages 173-196, March.
    9. McKenzie, Grant, 2019. "Spatiotemporal comparative analysis of scooter-share and bike-share usage patterns in Washington, D.C," Journal of Transport Geography, Elsevier, vol. 78(C), pages 19-28.
    10. Anne-Sophie Barbe & Caroline Hussler, 2019. "“The war of the worlds won't occur”: Decentralized evaluation systems and orders of worth in market organizations of the sharing economy," Post-Print halshs-02076741, HAL.
    11. Kim, Kibum & Baek, Chulwoo & Lee, Jeong-Dong, 2018. "Creative destruction of the sharing economy in action: The case of Uber," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 118-127.
    12. Georgina Santos, 2018. "Sustainability and Shared Mobility Models," Sustainability, MDPI, vol. 10(9), pages 1-13, September.
    13. Farrell, Joseph & Klemperer, Paul, 2007. "Coordination and Lock-In: Competition with Switching Costs and Network Effects," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 31, pages 1967-2072, Elsevier.
    14. Bergek, Anna & Berggren, Christian & Magnusson, Thomas & Hobday, Michael, 2013. "Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?," Research Policy, Elsevier, vol. 42(6), pages 1210-1224.
    15. Øystein D. Fjeldstad & Amir Sasson, 2010. "Membership Matters: On the Value of Being Embedded in Customer Networks," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 944-966, September.
    16. Wilhelms, Mark-Philipp & Merfeld, Katrin & Henkel, Sven, 2017. "Yours, mine, and ours: A user-centric analysis of opportunities and challenges in peer-to-peer asset sharing," Business Horizons, Elsevier, vol. 60(6), pages 771-781.
    17. Eduardo Lúcio Lasmar Júnior & Rodrigo Marçal Gandia & Joel Yutaka Sugano & Thais Assis De Souza & Demóstenes Zegarra Rodriguez, 2019. "New business models and the sharing economy: impacts and challenges for the traditional automotive industry," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 19(3/4), pages 301-320.
    18. Ambrosino, Giorgio & Nelson, John D. & Boero, Marco & Pettinelli, Irene, 2016. "Enabling intermodal urban transport through complementary services: From Flexible Mobility Services to the Shared Use Mobility Agency," Research in Transportation Economics, Elsevier, vol. 59(C), pages 179-184.
    19. Karla Münzel & Wouter Boon & Koen Frenken & Taneli Vaskelainen, 2018. "Carsharing business models in Germany: characteristics, success and future prospects," Information Systems and e-Business Management, Springer, vol. 16(2), pages 271-291, May.
    20. Farajallah, Mehdi & Hammond, Robert G. & Pénard, Thierry, 2019. "What drives pricing behavior in Peer-to-Peer markets? Evidence from the carsharing platform BlaBlaCar," Information Economics and Policy, Elsevier, vol. 48(C), pages 15-31.
    21. Tim Schwanen, 2016. "Rethinking resilience as capacity to endure," City, Taylor & Francis Journals, vol. 20(1), pages 152-160, February.
    22. Claire Weiller & Tianjiao Shang & Andy Neely & Yongjiang Shi, 2015. "Competing and co-existing business models for EV: lessons from international case studies," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 15(2), pages 126-148.
    23. Ioannis Bellos & Mark Ferguson & L. Beril Toktay, 2017. "The Car Sharing Economy: Interaction of Business Model Choice and Product Line Design," Manufacturing & Service Operations Management, INFORMS, vol. 19(2), pages 185-201, May.
    24. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    25. Merfeld, Katrin & Wilhelms, Mark-Philipp & Henkel, Sven & Kreutzer, Karin, 2019. "Carsharing with shared autonomous vehicles: Uncovering drivers, barriers and future developments – A four-stage Delphi study," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 66-81.
    26. Prieto, Marc & Baltas, George & Stan, Valentina, 2017. "Car sharing adoption intention in urban areas: What are the key sociodemographic drivers?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 218-227.
    27. Kent, Jennifer & Dowling, Robyn & Maalsen, Sophia, 2017. "Catalysts for transport transitions: Bridging the gap between disruptions and change," Journal of Transport Geography, Elsevier, vol. 60(C), pages 200-207.
    28. Julie Clark & Angela Curl, 2016. "Bicycle and Car Share Schemes as Inclusive Modes of Travel? A Socio-Spatial Analysis in Glasgow, UK," Social Inclusion, Cogitatio Press, vol. 4(3), pages 83-99.
    29. Kim, Jinhee & Rasouli, Soora & Timmermans, Harry, 2017. "Satisfaction and uncertainty in car-sharing decisions: An integration of hybrid choice and random regret-based models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 13-33.
    30. Anne Brown, 2019. "Redefining Car Access," Journal of the American Planning Association, Taylor & Francis Journals, vol. 85(2), pages 83-95, April.
    31. Skeete, Jean-Paul, 2018. "Level 5 autonomy: The new face of disruption in road transport," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 22-34.
    32. Peters, Luke & MacKenzie, Don, 2019. "The death and rebirth of bikesharing in Seattle: Implications for policy and system design," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 208-226.
    33. Zeng, Jing & Khan, Zaheer & De Silva, Muthu, 2019. "The emergence of multi-sided platform MNEs: Internalization theory and networks," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    34. Henao, Alejandro & Marshall, Wesley E., 2019. "An analysis of the individual economics of ride-hailing drivers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 440-451.
    35. Fjeldstad, Øystein D. & Jakobsen, Erik W., 2005. "Transaction organizations and transaction cost analysis: A theoretical investigation of the domain-expansion decisions of firms employing a mediating technology," Scandinavian Journal of Management, Elsevier, vol. 21(1), pages 77-100, March.
    36. Adrien Querbes, 2018. "Banned from the sharing economy: an agent-based model of a peer-to-peer marketplace for consumer goods and services," Journal of Evolutionary Economics, Springer, vol. 28(3), pages 633-665, August.
    37. Becker, Henrik & Ciari, Francesco & Axhausen, Kay W., 2017. "Comparing car-sharing schemes in Switzerland: User groups and usage patterns," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 17-29.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alvarez León, Luis F. & Aoyama, Yuko, 2022. "Industry emergence and market capture: The rise of autonomous vehicles," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    2. Schulz, Thomas & Zimmermann, Sina & Böhm, Markus & Gewald, Heiko & Krcmar, Helmut, 2021. "Value co-creation and co-destruction in service ecosystems: The case of the Reach Now app," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    3. Nishikawa, Bruna T. & Orsato, Renato J., 2021. "Professional services in the age of platforms: Towards an analytical framework," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. Zhou, Shengjia & Wang, Junhao & Xu, Bing, 2022. "Innovative coupling and coordination: Automobile and digital industries," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    5. Alfiero, Simona & Battisti, Enrico & Ηadjielias, Elias, 2022. "Black box technology, usage-based insurance, and prediction of purchase behavior: Evidence from the auto insurance sector," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    6. Quirós, Cipriano & Portela, Javier & Marín, Raquel, 2021. "Differentiated models in the collaborative transport economy: A mixture analysis for Blablacar and Uber," Technology in Society, Elsevier, vol. 67(C).
    7. Plantec, Quentin & Deval, Marie-Alix & Hooge, Sophie & Weil, Benoit, 2023. "Big data as an exploration trigger or problem-solving patch: Design and integration of AI-embedded systems in the automotive industry," Technovation, Elsevier, vol. 124(C).
    8. Llopis-Albert, Carlos & Rubio, Francisco & Valero, Francisco, 2021. "Impact of digital transformation on the automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    9. Liqiao Wang & Peter Wells, 2021. "Regime Confluence in Automobile Industry Transformation: Boundary Dissolution and Network Reintegration via CASE Vehicles," Energies, MDPI, vol. 14(4), pages 1-18, February.
    10. Stefan Catana & Sorin-George Toma, 2021. "Marketing Mix And Corporate Social Responsability In Automotive Industry – Case Study: Mazda Motor Corporation," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 205-209, February.
    11. Sweet, Matthias N. & Scott, Darren M., 2021. "Shared mobility adoption from 2016 to 2018 in the Greater Toronto and Hamilton Area: Demographic or geographic diffusion?," Journal of Transport Geography, Elsevier, vol. 96(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wei Zhou & Haixia Wang & Victor Shi & Xiding Chen, 2022. "A Decision Model for Free-Floating Car-Sharing Providers for Sustainable and Resilient Supply Chains," Sustainability, MDPI, vol. 14(13), pages 1-18, July.
    2. Maria Nadia Postorino & Giuseppe M. L. Sarnè, 2023. "Using Reputation Scores to Foster Car-Sharing Activities," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    3. Golalikhani, Masoud & Oliveira, Beatriz Brito & Carravilla, Maria Antónia & Oliveira, José Fernando & Antunes, António Pais, 2021. "Carsharing: A review of academic literature and business practices toward an integrated decision-support framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    4. Mikko Hänninen & Anssi Smedlund, 2021. "Same Old Song with a Different Melody: The Paradox of Market Reach and Financial Performance on Digital Platforms," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1832-1868, November.
    5. Abdul Rais Abdul Latiff & Saidatulakmal Mohd, 2023. "Transport, Mobility and the Wellbeing of Older Adults: An Exploration of Private Chauffeuring and Companionship Services in Malaysia," IJERPH, MDPI, vol. 20(3), pages 1-17, February.
    6. Lee, Junmin & Kim, Keungoui & Kim, Jiyong & Hwang, Junseok, 2022. "The relationship between shared mobility and regulation in South Korea: A system dynamics approach from the socio-technical transitions perspective," Technovation, Elsevier, vol. 109(C).
    7. Wang, Wanying & Zhang, Qiang & Peng, Zhanglin & Shao, Zhen & Li, Xuefang, 2020. "An empirical evaluation of different usage pattern between car-sharing battery electric vehicles and private ones," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 115-129.
    8. Shichao Sun & Yuanqian Liu & Yukun Yao & Zhengyu Duan & Xiaokun Wang, 2021. "The Determinants to Promote College Students’ Use of Car-Sharing: An Empirical Study at Dalian Maritime University, China," Sustainability, MDPI, vol. 13(12), pages 1-12, June.
    9. Giovanna Magnani & Beatrice Re, 2020. "Lived experiences about car sharing in young adults: Emerging paradoxes," Italian Journal of Marketing, Springer, vol. 2020(2), pages 207-229, September.
    10. Prieto, Marc & Stan, Valentina & Baltas, George, 2022. "New insights in Peer-to-Peer carsharing and ridesharing participation intentions: Evidence from the “provider-user†perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    11. Fei Ma & Dan Guo & Kum Fai Yuen & Qipeng Sun & Fuxia Ren & Xiaobo Xu & Chengyong Zhao, 2020. "The Influence of Continuous Improvement of Public Car-Sharing Platforms on Passenger Loyalty: A Mediation and Moderation Analysis," IJERPH, MDPI, vol. 17(8), pages 1-21, April.
    12. Rotaris, Lucia, 2022. "Peer-to-peer carsharing in less-densely populated areas: An empirical analysis in Friuli-Venezia Giulia (Italy)," Research in Transportation Economics, Elsevier, vol. 91(C).
    13. Alvarez León, Luis F. & Aoyama, Yuko, 2022. "Industry emergence and market capture: The rise of autonomous vehicles," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    14. Leiming Li & Yu Zhang, 2023. "An extended theory of planned behavior to explain the intention to use carsharing: a multi-group analysis of different sociodemographic characteristics," Transportation, Springer, vol. 50(1), pages 143-181, February.
    15. Giovanna Magnani & Beatrice Re, 0. "Lived experiences about car sharing in young adults: Emerging paradoxes," Italian Journal of Marketing, Springer, vol. 0, pages 1-23.
    16. Hellsmark, Hans & Hansen, Teis, 2020. "A new dawn for (oil) incumbents within the bioeconomy? Trade-offs and lessons for policy," Energy Policy, Elsevier, vol. 145(C).
    17. Geels, Frank W. & Kern, Florian & Fuchs, Gerhard & Hinderer, Nele & Kungl, Gregor & Mylan, Josephine & Neukirch, Mario & Wassermann, Sandra, 2016. "The enactment of socio-technical transition pathways: A reformulated typology and a comparative multi-level analysis of the German and UK low-carbon electricity transitions (1990–2014)," Research Policy, Elsevier, vol. 45(4), pages 896-913.
    18. Kattirtzi, Michael & Ketsopoulou, Ioanna & Watson, Jim, 2021. "Incumbents in transition? The role of the ‘Big Six’ energy companies in the UK," Energy Policy, Elsevier, vol. 148(PA).
    19. Tzu-Ying Chen & Rong-Chang Jou & Yi-Chang Chiu, 2021. "Using the Multilevel Random Effect Model to Analyze the Behavior of Carpool Users in Different Cities," Sustainability, MDPI, vol. 13(2), pages 1-13, January.
    20. Qian Duan & Xin Ye & Jian Li & Ke Wang, 2020. "Empirical Modeling Analysis of Potential Commute Demand for Carsharing in Shanghai, China," Sustainability, MDPI, vol. 12(2), pages 1-18, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:154:y:2020:i:c:s0040162518318213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.