GM car sharing service paves way for future mobility

GM International Strategy and Urban Mobility Director Anthony Riemann speaks during an interview with The Korea Times in Seoul, Sept. 14. / Courtesy of GM Korea

By Jhoo Dong-chan

The automobile industry is changing more rapidly than ever.

In response to strengthened emissions control and technology integration with the IT industry, global carmakers have suggested their versions of interpretation for future mobility. During this year’s Consumer Electronics Show (CES) held in Las Vegas, global carmakers introduced the concept of future mobility, a core technology that is expected to shape the future of the automobile market. Hyundai Motor Vice Chairman Chung Eui-sun also said at the show that future mobility is made up of three pillars _ autonomy, connected and eco-friendly.

Besides these, a senior GM executive said car sharing will be another important development to become the fourth pillar that defines future mobility.

“It’s true that car sharing is still a relatively new concept in Korea. For Koreans, a car is something they want to possess as a part of their property, not a public good to share with others,” GM International Strategy and Urban Mobility Director Anthony Riemann said during an interview with The Korea Times.

“I believe, however, car sharing will be important in the automobile industry. Along with the urban growth of major cities around the world, an increasing number of the younger generation have started using car sharing services like Uber and Lyft.”

In January 2016, General Motors launched its own car sharing service, Maven, following its acquisition of selected assets and employees from Sidecar, which had closed its operation in 2015 after failing in competing against car sharing giants Uber and Lyft.

Riemann said Maven is currently operational in 17 cities in the United States and two cities in Australia.

“It has been only a year and half since GM started Maven. Its size is still relatively small, but we have seen a great deal of potential in the business,” he said.

“Unlike other startups and IT firms that operate car sharing services, GM is a carmaker that can provide individualized solutions for various needs in mobility. Those who have driven GM cars via Maven could be potential customers to buy our cars. We are preparing various platforms to satisfy a wider range of consumers.”

Maven is run via a smartphone application. A user needs to sign up for membership and choose the car based on where the user is. Then, he or she can open the vehicle’s door or start the engine through the Maven application with a key.

Various GM vehicle models, including the eco-friendly Bolt electric vehicle (EV) and Tahoe SUV, are available via the application. The price starts from $8 per hour.

Riemann said car sharing will see a synergy with the full introduction of EVs on the streets.

“The nature of EV is pretty similar to car sharing,” he said.

“Charging is an important element in EV. GM is considering technology integration between its charging stations and car sharing station systems. I believe the Chevrolet Bolt EV’s long driving range will be a great boost to GM’s Maven operation once the integration takes place.”

Cadillac, GM’s luxury auto brand, has also operated a different type of car sharing service. Through “Book by Cadillac” service, members can choose from various Cadillac models to best suit their needs.

For a flat monthly fee of $1,500, Book by Cadillac gives members access to popular Cadillac vehicles without the commitment of financing or buying.

Riemann added Korea is also a very attractive market for car sharing.

“Megacities such as Seoul are densely populated. The needs for car sharing in such cities are believed to be very high considering the high cost of parking and traffic congestion,” he said. “GM is still studying related regulations for car sharing in Korea. Also, the in-city taxi fare is another factor.”

Riemann believes the development of autonomous cars will help expand the car sharing market.

“People still have to take a taxi or use public transportation to pick up their cars. It burdens additional costs for users,” he said.

“If self-driving cars are introduced, people do not have make such efforts because your car will be delivered TO your door autonomously. Four pillar technologies in future mobility are all correlated to each other.”