Mobility-as-a-Service providers will witness significant growth over the next 2 to 3 decades, as the transportation space evolves, but business models for existing players will be challenged until further scale and technology advancements are achieved.
CFRA envisions a more stable pricing/discounting environment in the U.S., reflecting a more mature market and greater cooperation between the market share leaders.
A higher cost of ownership for vehicles and shifting consumer behavior will likely result in broader adoption and greater usage for ridesharing services, by our analysis.
The true benefits of shared mobility services will not be realized until fully autonomous vehicles fleets are available, which is likely to take place at a slower pace than many anticipate.
We view barriers to entry as fairly low for major technology providers and auto manufacturers, which pose the biggest threat for existing ridesharing providers, while the regulatory environment remains an obstacle.
We think LYFT and UBER are poised to realize significant scale/benefits from the evolution of transportation as a service while GOOG.L’s Waymo business and TSLA, among others, help pave the way towards pushing ridesharing into a world of autonomous vehicles.
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