The "Pay-As-You-Go" Car and the Future of Mobility

Goldman Sachs Exchanges

Goldman Sachs

Business

4.4 • 1K Ratings

🗓️ 6 December 2017

⏱️ 23 minutes

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Summary

Ride-hailing companies are poised for explosive growth over the next decade, according to Stefan Burgstaller, head of European industrials equity research. Their prominence may usher in the era of the 'pay-as-you-go' car, which could have dramatic effects on the entire automotive ecosystem. This podcast was recorded on November 2, 2017. All price references and market forecasts correspond to the date of this recording. This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this podcast does not constitute research or a recommendation from any Goldman Sachs entity to the listener. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefor (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. The views expressed in this podcast are not necessarily those of Goldman Sachs, and Goldman Sachs is not providing any financial, economic, legal, accounting or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by Goldman Sachs to that listener, nor to constitute such person a client of any Goldman Sachs entity. Copyright 2017 Goldman Sachs & Co. LLC. All rights reserved

Transcript

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0:00.0	This is Exchanges at Goldman Sachs where we discuss developments shaping markets, industries, and the global economy.
0:14.7	I'm Jake Seward, global head of corporate communications here at the firm.
0:18.0	Today we're going to be talking about the future of automobiles.
0:21.1	Ridehailing companies have introduced the possibility of a pay-as-you-go car, and my guest today,
0:25.5	Stefan Bergstler of Goldman Sachs research, has written a report describing how that industry
0:30.0	is poised to grow exponentially over the next few years.
0:33.0	We'll also talk about electric vehicles, automation,
0:35.3	and what all this means for the cities of the future.
0:37.0	Stefan, thanks for joining us.
0:39.0	Thanks for having it back.
0:40.4	Your report identifies a new product category, which you call mobility, simply mobility.
0:45.0	Ride sharing companies like DD, Uber, Lyft have essentially unbundled car use and car ownership
0:52.0	and allowed folks the ability in your words to pay as they go like
0:55.5	we do with other products. How did that opportunity come about?
0:58.3	Well I would focus on four drivers. First car ownership as we know it today is
1:02.2	inherently inefficient and costly.
1:05.0	The typical car on average is utilized 5% per year.
1:09.0	Second, the experience to take your car into a city has become quite punitive in terms of finding a parking and then the cost of parking.
1:18.0	And then thirdly is technology. We have now smartphones, GPS, maps, and all of these are building blocks for the system, for a pay-as-you-go-right-hailing provider.
1:30.0	So now we know where we are, where we want to go, but also where the taxes are or the right
1:35.5	hailers are to get us where we want to go.
1:37.7	So it's a much more dynamic and efficient matching of demand and supply. And then finally, access to capital.
	...

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