22 August 2023, Little City Car – The Case for a New Business Model.

Cars are increasingly unwelcome in cities. Congestion, either due to traffic or parking, limits the operating efficiency of the private car system in terms of time, space and energy. 

The past …

In Europe, streets were largely walkable or “15-minute cities”.

·        Streets were public spaces, as much for socializing as for transport.

·        Mostly pedestrian traffic – although hand carts were commonplace.

·        Horse drawn wagons used only for larger traded goods and were less common.

·        Horse drawn carriages used by the wealthy were rare.

The present …

·        Vehicles are mainly private cars and vans (including taxis and other light delivery vehicles).

·        Designed to carry at least 4 or 5 adults at speeds up to 140 Kph.

·        Vehicles are vast in comparison to their historical counterparts.

·        Numbers block traffic when in use – and also restrict useable road space when parked.

·        Contribute to the urban “heat island” effect (hot exhaust and need for huge Tarmac areas).

And the future …

·        Environmental policy in the next few years will limit the quantity and size of cars allowed.

·        Recent weather events in Southern Europe will push the political agenda.

·        Urban car ownership and use will be curtailed - inevitable.

·        Cars that take up less space when parked mean more trees lining the roads to cool the city.

·        This is a current trend (Citroen Ami /Opel Rocks-e /Fiat Topolino, Microlino etc.)

How to be a car company in a world that doesn’t want as many cars.

·        Conventional car ownership model is not fit for purpose in 2023 and beyond.

·        How would it be if you didn’t so much own the car as own the company? 

·        The customer is the shareholder, legal ownership of the car stays with the company.

How to manufacture cars in a world that doesn’t want as many cars.

·        The worth of the resources currently tied up in that vehicle stays with the company.

·        Responsibility for all down-stream recovery / re-use rests with the company.

·        Re-use, re-purpose or recycle to maximize revenue - normal commercial operation.

·        Circular manufacturing – nothing is wasted – not even money.

This company structure would also allow for shorter term rental via a car club, similar to ZipCar (owed by Avis) and Whizzgo (now Enterprise Car Club).

© Jonathan Holt, August 2023