Electronics and Semiconductors

Business opportunities in the age of e-mobility

03 October 2024
E-scooters are becoming a new type of mobility used in cities as an alternative to combustion engine vehicles. Source: InsideCreativeHouse/Adobe Stock

E-mobility is growing as a business globally. This is due to regions looking to curb climate change related vehicles as well as meet growing regional mandates for more green technology.

E-mobility encompasses a range of vehicles like cars, scooters, bikes, buses, forklifts and trucks. As vendors learn to save move and improve efficiency using electrified models, business opportunities are growing but not with some challenges.

Benefits of e-mobility

The most significant benefit for businesses using smart mobility is increased efficiency. Integrating networked sensors and devices into vehicles, companies access real-time data on driver behavior, vehicle performance and route efficiency. This data allows companies to schedule maintenance proactively, optimize the delivery routes and improve fleet management. These contribute to a reduction in vehicle operational costs and downtime.

E-bikes, scooters and electric vehicles (EVs) can also reduce the fuel costs to the business. According to American Electric Power, for every EV that replaces a regular vehicle, there’s a 50% reduction in the fuel cost for the first year and a 100% reduction in tailpipe emissions. By 2040, 15 million EVs will be a part of corporate fleets.

Delivery and ride-sharing

One of the largest industries making the switch is delivery services. From GrubHub to Amazon, the rise of electric and autonomous solutions continues to grow. GrubHub has provided access to thousands of e-bikes in busy urban environments for delivery workers, while Amazon is making a switch to 100,000 electric delivery vans by 2030. These vehicles improve last-mile delivery efficiency, while the company can employ IoT sensors to ensure superior cost savings.

The mobility-as-a-service (MaaS) sector has also been shifting toward smart mobility with autonomous and connected vehicles. Lyft and Uber are exploring using more EVs and AVs to reduce emissions and costs. Lyft hopes to be 100% electric by 2030, while Uber is on the same path, with about 60,000 EVs currently operating at any given time. Additionally, Uber and Lyft passengers in Las Vegas have been able to use Motional’s autonomous IONIQ 5 to get around the city, revealing a hint of what’s to come to other urban areas.

Big business and smart cities

Today’s tech companies continue to be a step ahead by promoting an eco-friendly and healthy work environment. Both Apple and Google offer employees e-bikes and scooters to commute around the large campuses, increasing productivity and facilitating quicker movement. Yet, these technologies aren’t just for working, with the hospitality and tourism industry offering e-bike and scooter rentals for visitors to explore the local attractions without the need for a car rental.

In smart cities, urban mobility remains a top concern. Bike-sharing, electric public transportation and intelligent traffic management are all entering city environments. Even local governments can implement more e-mobility solutions to reduce congested roadways and mitigate traffic incidents. When the roadway is congested with traffic, a police officer may be able to get to a scene faster while on the back of an e-bike or scooter.

In smart cities, e-mobility solutions are growing as an alternative to mass transit for the population. It is likely these types of solutions will continue to grow in popularity as cities look to meet regional climate mandates. Source: Adobe StockIn smart cities, e-mobility solutions are growing as an alternative to mass transit for the population. It is likely these types of solutions will continue to grow in popularity as cities look to meet regional climate mandates. Source: Adobe Stock

Smart mobility challenges

While opportunities are emerging and vendors are adopting e-mobility quickly, challenges remain.

First and foremost are the initial investment costs. Whether a company supplies electric scooters for urban deliveries or adds EV charging stations for employees, there’s going to be infrastructure that needs to be built. The upfront investment can be overwhelming to some smaller companies.

There’s also an issue with data security and privacy. A 2023 study reveals that millions of electric cars may be vulnerable to cyber-attacks. Businesses need to comply with data protection regulations so customers know their sensitive data is protected. These upgrades and continued improvements also lead to a higher investment cost.

Some autonomous vehicles, like drones for delivery services, may require regulatory approval and permits to use. These guidelines vary per region, although there are also federal rules that must be followed. To protect the company from hefty fines and violations, there should be a conversation with professionals in that region to ensure compliance, but this red tape adds to the expenses and can make the launch time later than expected.

Companies need to be further concerned with training and upskilling employees. Retraining may be necessary to implement smart mobility technology. Further support will be required as newer technology emerges.

Finally, consumer acceptance needs to be considered. According to the J.D. Power 2023 U.S. Mobility Confidence Index (MCI) Study, driver confidence in the U.S. has dropped to 37% regarding autonomous vehicles, which is a two-point decrease when compared to the 2022 index score. Studies suggest that personal experiences with EVs can lead to a more favorable outlook, so it may just be a matter of getting these smart vehicles in front of the consumer more often.

Solutions for tomorrow

For the infrastructure to grow at the rate needed, there must be partnerships between the private sector and governments. The Federal Highway Administration runs The National Electric Vehicle Infrastructure Program (NEVI) and is responsible for creating hundreds of new opportunities. Funding is received from the $1.2 trillion Bipartisan Infrastructure Bill that Congress passed, but Texas has received the most so far ($407 million) to build 3,615 miles of EV charging corridors, with California coming in second with $384 million for upgraded infrastructure.

Robust data protection standards must be implemented to safeguard consumer data and offer more transparency in companies’ data handling practices. All connected vehicles (EVs, e-bikes and scooters) must go through regular security audits and receive updates to patch any vulnerabilities that exist.

Additionally, consumers need to be educated about the benefits of smart mobility. Concerns about safety, environmental impact and reliability must be addressed through targeted demonstrations and campaigns. Once urban commuters see the benefits of e-bikes in the city and get to try them, it won’t be hard to get them to make the switch — seeing they can get from Point A to Point B in a fraction of the time as compared with waiting in traffic. To encourage the adoption of these technologies, there should be further tax credits and subsidies for e-mobility and autonomous vehicle purchases. Cities also need to include more preferential parking for these operators.

The planning aspect truly comes down to the smart cities. During urban planning, smart mobility solutions must be prioritized, adding more infrastructures to dense population areas where the transportation demand is highest. Mobility solutions can also extend beyond the inner urban areas by placing options on the city’s outskirts.

Finally, renewable energy sources must be implemented on a larger scale to accommodate electric mobility solutions. Sustainable materials must be invested in to further reduce the environmental impact of the technological growth.

About the author

Brian Jones is an ASE Certified Master Technician and owns a small business in the automotive industry. He is also an experienced technical writer.

To contact the author of this article, email GlobalSpecEditors@globalspec.com


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