Bain&Company has published a new report on mobility industry in China, outlining the stupendous growth rates in the country. For example, e-hailing grew from $5 billion in 2014 to $30 billion this year, bigger than rest of the world market combined, and is projected to reach $72 billion by 2020. Bike-sharing market, non-existent in 2014, now has 120 million monthly users.
The report also shows how consumer behavior in China is different from most of the world — almost 50% of ride-hail trips, for example, begin through a consumer aggregator like WeChat or Dianping. Didi captures 90% of all e-hailing trips and 40% of the volume among e-hailing portals.
Uber gets probationary licence in London
Uber has been granted a 15-month probationary license to continue its operations in London. Last September Uber was stripped of its licence after Transport of London ruled that the company was not “fit and proper” to have private hire vehicles operator licence.
TfL mentioned concerns about public safety, failure to report crimes and to conduct proper background checks on drivers. Uber had admitted in the court that the decision not to renew its licence had been correct and argued that it has improved its procedures, such as proactive reporting of serious incidents and ensuring the drivers operate only in areas where they hold licence.
TfL will be monitoring the company for next 15 months, and based on the results will consider renewing its licence.
VW mobility unit head underlines importance of AVs
Head of MOIA, mobility unit of Volkswagen, Ole Harms relies on the rise of self-driving vehicles in his plan to catch up with ride-hailing giants like Uber, without burning cash. According to Harms, MOIA is focused on connecting mobility market with VW’s manufacturing capacity, including development of autonomous vehicles. He hopes the company can make profit by 2025.
VW was relatively late to the mobility market and is behind not only Uber, Lyft and Didi but also its German competitors Daimler and BMW, which have recently combined their car-sharing services, DriveNow and Car2Go. However, VW has invested “a significant three-digit million Euro” in MOIA and hopes to catch up with competition.