Our economy is changing in front of our eyes. At first glance it may seem slow. Streaming services replacing movie theaters. Online retailers gradually taking more business from brick and mortar stores. Ride hailing and food delivery options changing the way we think about convenience. The global COVID-19 pandemic accelerated some of these processes, but they were already well underway.
There is an increased demand for solutions that perform a job or deliver an outcome.
From some of the largest incumbent companies in the world, to disruptive startups trying to make a name for themselves, the service landscape reveals big thinkers who are pushing their industries forward.
Across industries, there is an increased demand for solutions that perform a job or deliver an outcome. This demand is pushing industries to convert from a product-base to a service-base. While some industries (think software) are close to 100% converted, many still wonder if their industry will change. It’s not a matter of if, but when!
This article will highlight several examples of recent service innovations from delivery to cars and batteries.
Delivery
Walmart recently announced GoLocal, a service that connects local retailers with consumers
Walmart recently announced GoLocal, a service that connects local retailers with consumers. They provide shipping and delivery capabilities to smaller companies who may not have the infrastructure to reach their desired market. To do this, Walmart is leaning into automated driving and drone technologies. GoLocal is an obvious attempt to compete with Amazon, and we will likely see similar attempts from other retail giants moving forward.
Cars
Renault and Jiangling Motors partnered to create a car-as-a-service model
French automaker Renault and Chinese automaker Jiangling Motors partnered to create Mobilize Limo, a car-as-a-service model that offers high-end electric vehicles to rideshare drivers via a subscription. They have a pay-as-you-drive service for casual drivers and a more expensive option that includes warranties, maintenance, insurance, and charging solutions. The cars are connected to an app that allows the driver to access detailed statistics, control the climate, and remotely lock and unlock the car.
Batteries
Startup “Ample” is looking to fix this problem by offering batteries-as-a-service
One of the biggest problems facing the electric vehicle (EV) industry is charging logistics. With current EV infrastructure, finding a station and waiting for a full charge can be an annoyance for electric car owners. Recent startup Ample is looking to fix this problem by offering batteries-as-a-service. Instead of stopping and waiting for a full charge, electric car owners can simply swap out their depleted battery for a fully charged one at eligible locations. Ample would charge a subscription for access to their stations.
As different sectors face pressure to innovate, services will continue to increase in popularity. As various industries shift to as-a-service models, customers will become gradually more accustomed to the idea of paying for services and expecting the ease of use and ease of doing business that comes from these complete offering models.
This shift to services is not contained to only the industries above. The move to as-a-service is happening everywhere. Act now to be a leader in your industry, generate growth, and capture options for increased market share, wallet share and recurring revenue.
