Automakers must respond to political drive to take cars off the road

Back in December 2016, Volkswagen established its newest business unit: Moia, a mobility service with ambitions of becoming a leading service provider by 2025. It made VW the latest automaker to branch out into the Mobility as a Service (MaaS) market, a move which could prove essential for the company’s long-term health. Virtually every automaker is now exploring options for ride-hailing, car-sharing and ride-pooling provision.

Today the automotive industry finds itself in a time in which, on the one hand, interest in personal ownership is declining, particularly in cities where the idea is impractical; on the other hand, there is a political drive in markets worldwide to take cars off the road. This could reduce inner-city congestion, lower emissions and improve public health.