E-mobility refers to electrified power in all types of vehicles, from electric cars, to scooters and bikes.
There’s been enormous growth in the area, especially in the last three years and it’s been predicted that electric vehicles will become common on roads across the UK by 2030.
At this stage it’s important for brokers to understand the possible impact e-mobility may have on society and businesses and to establish how clients may want to prepare as technology advances.
Here’s some of the top predictions for e-mobility and the possible impact they may have:
Urbanisation has caused a shift towards inter-urban travel. People’s mindsets are changing to see travel as a service because of the ever increasing options to choose, whether that’s a car, train or bike.
The pandemic has certainly emphasised the ‘travel as service’ notion, and people are taking less mass transportation methods and are using private vehicles more.
The concept of classical ownership is being redefined as people start to think differently about ownership and travel becomes more about sharing.
In the future, less people will want to buy and own a car, but instead want the flexibility to drive as and when needed. The pandemic has accelerated this as travel has reduced with more people working from home.
There isn’t currently the infrastructure to encourage the use of electric vehicles. Not everyone can charge at home, especially if you have on-street parking or if you live in a flat.
Some brands are already tackling this issue, but there needs to be a significant ramp up in the amount of infrastructure available. For example, having charging locations in public areas like shopping areas or parking garages would make electric vehicles more accessible for many.
Paying to charge your electric car isn’t simple. At the moment you need seven different cards and 10 different apps and even then people are paying different rates or being pre-charged. There’s no consistent or easy to use options available.
It’s expected that when infrastructure in the UK catches up in terms of hardware, the clarity of payment options and the usability rates should improve.
Big names in the major parcel and post companies around the UK, Europe and the US are looking at electrified vehicles as part of their future solution. There’s already been commitments to hundreds of thousands of vehicles.
This demand for electrified fleets is extending into medium duty lorries which is going to be another big growth driver, especially in urban environments where safety regulations are going to dictate road emissions.
Keeping up-to-date with developments is important for brokers because electrified vehicles may provide a greener and more cost effective solution for clients with motor fleet businesses.
Electric vehicle batteries haven’t been perfected yet. The cost of batteries are high and there’s uncertainty around the distance a vehicle can travel before needing to charge. This lack of dependability is one of the main barriers to electric vehicle adoption at the moment.
But it’s expected that as demand increases for electric vehicles this should cause the prices of batteries to come down and make them more affordable.
It’s been predicted that software or fleet management providers can have the potential to offer their clients cost saving advice based on the data gathered through their electric vehicles. For example, data related to health monitoring, safety and security can be gathered and analysed to find cost-saving improvements.
This will also provide the opportunity to gather usage-based data for understanding appropriate insurance cover needed too.
The introduction of more electric vehicles could introduce new insurance products that rely on a usage-based payment approach. This would mean insurance was being priced per minute or per trip rather than on an annual basis.
This might especially benefit micro-mobility as it may allow greater flexibility for users and provide a solution for the urban lifestyle they want to live.
