{ "docId": "019dd923-5de0-76bd-a16a-9fe66e6607a5", "docSlug": "ec22d152d2e3101b", "documentTitle": "Vehicle-as-a-Service From vehicle ownership to usage-based subscription models", "authorId": "Deloitte", "authorName": "Deloitte", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.778, "pageNumber": 22, "pageCount": 31, "prevPage": 21, "nextPage": 23, "slideType": "key_messages", "function": "summarize", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses a navigation sidebar on the right to indicate the current section (06).", "elementsJson": [ "paragraph", "other" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16a-9fe66e6607a5/22", "deckHref": "/decks/019dd923-5de0-76bd-a16a-9fe66e6607a5", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16a-9fe66e6607a5.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16a-9fe66e6607a5#slide-22", "components": [ { "bbox": { "h": 0.25, "w": 0.21, "x": 0.038, "y": 0.18 }, "kind": "paragraph", "text": "Funding & Financing: Customers do not own the vehicles in a subscription model, which means another entity has to have them on their books. Where the subscription provider and the asset owner are the same entity, the provider must either have sufficient financial resources to fund its growing balance sheet or access to cheap debt capital or external funding at a minimum.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0b73c7ba-d486-416f-9c9e-02dee7b4c548", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.21, "x": 0.51, "y": 0.18 }, "kind": "paragraph", "text": "When it comes to sourcing vehicles the right way, rental companies and Captives will have a structural advantage over low-scale start-ups. Not only do they have large (discounted) purchase volumes and mature procurement departments, but also economies of scale with regard to processes. Good multi-brand spot deals (e.g., large insolvency buy-outs) can provide a much better cost advantage than sourcing directly from OEMs (even if sourced on a cost-of-goods-sold basis).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37c4e4cd-2386-4d89-aa1b-9bea582667e1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.21, "x": 0.745, "y": 0.18 }, "kind": "paragraph", "text": "Rental/leasing companies and Captives have another structural advantage in terms of utilization. As subscriptions are not their only business model (e.g., rental, leasing, financing, etc.), they have the flexibility to move the vehicles between their respective product plans based on current demand. Vehicle subscriptions in this scenario do not just generate profits on their own; they also offer a strategic advantage for the rest of the business.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "558a53c6-3aec-46f2-b2ef-e50d6b71d65c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.21, "x": 0.745, "y": 0.49 }, "kind": "paragraph", "text": "Lastly, providers move vehicles to another phase of the lifecycle at the end of each subscription cycle. In order to make an informed decision about where the asset will generate the most profit in the next phase, subscription providers need to invest in data analytics and residual value management tools. These tools will provide ongoing transparency about the residual value and the aggregated cash flows that any vehicle might generate in a further subscription/ rental/car-sharing cycle - or if it would be more profitable to sell the asset outright.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b0126f2a-5e80-4f05-9bce-1ab83719c0dd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.21, "x": 0.275, "y": 0.49 }, "kind": "paragraph", "text": "Depending on the final product design (please refer to the previous chapter for our eleven design principles), providers need to have the right vehicles for their target market position and customer base (without ignoring the cost of sourcing, RV risk and maintenance costs). The potential range is huge: from budget to premium vehicles, from compact cars to large SUVs and from new to used vehicles. The crucial factor for all of these decisions is knowing what the customer wants!", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d1d75bf1-f0d8-45c4-84fa-bca683a8ecb0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.21, "x": 0.51, "y": 0.49 }, "kind": "paragraph", "text": "Once the right vehicles are in the fleet, the next critical factor for profitability is a high utilization rate. This correlates directly with pricing. If utilization is too low in the current fleet, the provider can drop prices temporarily to increase subscription sales. Dynamic pricing is therefore an important lever to sustain high utilization rates and stay competitive. After all, the more satisfied and engaged your customers are, the longer they will keep their vehicle without taking the option to exchange it. In the end, fewer vehicle exchanges will also lead to higher asset utilization rates.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eaff819e-ed59-4145-8842-c0ce70018938", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.21, "x": 0.275, "y": 0.18 }, "kind": "paragraph", "text": "Asset Sourcing, Remarketing & Risk Management: In order to maintain a low-cost base over time, subscription providers need to source their vehicles at a competitive price, closely manage residual value (RV) risk and ensure that asset utilization and vehicle resell rates are high. Let's examine these core capabilities in more detail. There are two main success factors for vehicle sourcing: sourcing the right vehicles and sourcing them the right way.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fa7080b8-0340-49bb-b7b3-f9c9cff65654", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.35, "x": 0.038, "y": 0.06 }, "kind": "title", "text": "06 | Critical Capabilities & Operating Model Design", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9efdc082-b932-42a5-a9fd-d0813dfe8bc7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 23, "from": 10, "beatId": "130ba514-326b-4c6a-97e9-a7120fe2e735", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Solution & Approach", "beatSlug": "consultants-gambit-solution-approach", "evidence": "The deck presents core value propositions, subscription details, and critical capabilities.", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }