Product diversification – hardware to software

Image credit: Marc Urbano –

“When you switch to mobility as a service, I think the product could change significantly.”

“I think the automotive industry will change significantly in the future, because the products may change. We already see a change from the gasoline engines to the hybrid to the electric vehicles, and then there will be H2 for the cars of the future… And on the other hand, I think the usage will be changed in the future. Today, most of the people are owning their cars as an emotional good. But when you switch to mobility as a service, and maybe the city is the customer, for example, I think the product could change significantly. There was a good survey of Uber users two years ago, and they only asked them, “Do you know the colour of the Uber you used last time?” The colour. 90% said they had no idea. Why do I need 20 colours of the car if 90% of the users don’t know the colour they used last time? So, I think diversification in the future will change from the outside and the hardware to the software and entertainment systems, especially.”

As car manufacturers transition from selling standalone products to offering customers new combinations of products accompanied by services, as models of ownership change and trends like mobility as a service become more widespread, the perception of what a car is and what it represents might evolve as well. This can result in new business models and a stronger focus on software-based innovations.