Mobility providers must reset course to overcome stalling demand for usership products

Pricing pressures, volatile electric vehicle (EV) residual values, supply chain constraints, and widespread economic uncertainty are putting the brakes on mobility providers’ move to usership. Large firms such as Volvo have scaled back their usership operations. And many start-ups, including Cluno, Onto, Drover and Fair, have closed or been acquired by bigger rivals.

To build successful, enduring businesses, mobility providers should review their product offerings, secure ties with key partners and build effective pricing models that address the lifetime values of vehicles and customers, says Amelia Bradley, Associate Partner at consulting firm Corporate Value Associates (CVA).

“When the market is challenging in the short term, it’s tempting for companies to slow down everything that’s not their core business. But usership is still a fundamental part of mobility.”