6 Ways Car Brands Can Thrive Amid Car Sharing

If the future of car ownership is that there is none (read my first blog), then how can established auto brands position themselves to profit off of this seemingly dystopian future?

We will witness a widespread shift in fundamental business models throughout the auto industry that will allow car brands to adopt the "new fleet mindset". This however, won't be a key competitive differentiator like horsepower was in the 1960's and 70's, or like safety systems (ABS and airbags) were in the late 80's. By the time the new fleet mindset takes hold, average commuters will be expecting their car sharing experience to be as easy and seamless as finding a Starbucks in Seattle.

There are however, many other opportunities for car brands to differentiate themselves and thrive in the new world of mainstream car sharing. Here are just 6 ways that car companies will be able to set themselves up for profit:

1. Create a brand ecosystem that will be hard for consumers to leave. Car brands should treat their car sharing platform like a customer nurture engine, getting new customers comfortable with various products and services that make life easier to build dependence over time. When a customer moves from car share to ride purchase, the key is to make the ownership experience as care-free as the car share experience. After sharing a car for some time from a particular brand, perhaps buying a car gets customers free access to the concierge service (see point #3 below) they've been paying for as a car sharing participant. Create products like all-inclusive maintenance programs, car wash programs, even gas programs; none requiring the owner of the car to ever lift a finger. These add-ons could even be themselves further opportunities for revenue.

2. Sell premium, tasteful advertising space on your car sharing apps.

Imagine that a brand's car sharing app has a separate trip planner section that provides contextual restaurant recommendations, shopping recommendations, and a plethora of other entertainment recommendations—some sponsored, some not. Brands will be providing a value added experience for the driver by helping to enrich their metropolitan adventure, while also earning ad revenue.

3. Provide a "concierge" service to premium subscribers.

This is where the Ritz Carlton meets OnStar. Let's grab coffee (on me) to chat about this one, as it's my personal favorite. Imagine the possibilities this provides companies like BMW, Mercedes or Lexus for brand building and creating loyalty for their higher-priced fleet.

4. Sell the behavioral and location data that your fleet will generate to 3rd parties.

Branded fleets could be the next vehicle for mass consumer-data gathering, following in Facebook and LinkedIn's tracks.

5. Customize your fleet to your market.

New York will require a different fleet mix than Minnesota or Miami, so brands will have to ensure they know their audience's defining behavioral characteristics.

6. Leverage the data that your fleet will generate to inform existing vehicle model improvements or net-new models altogether.

Imagine always-on, real-time product usage information and product feedback that can be studied, distilled, and disseminated to the engineers in charge of building cars. There is a wealth of insight this feedback loop has the capability of providing, ultimately speeding up vehicle improvements by allowing design and engineering teams back at HQ to quickly spot flaws in their products, no matter how minute. This data could even allow brands to quickly identify any gaps in their product portfolio.

The future of the automotive industry will draw some parallels to the computer industry; we'll move further away from cars as stand alone products and closer to Cars as a Service.