GM Maven scaling down - failure?
Automotive Original Equipment Manufacturers (OEMs) are trying out different business models from its traditional new/used car sales, and financing to a broader definition of mobility provider. GM's Maven is one of such trials that was successfully expanding its business since its launch in 2016. Maven expanded its target customer and geographic area; from easier hour-to-hour car rental model like Zip Car to a peer-to-peer car sharing like Getaround, from its hometown Ann-Arbor to different areas in north America. Below milestones were Maven's 3-year expansion history, which recently has announced to stop scaling. According to WSJ, Maven decided to scale down in weaker markets such as Chicago and Boston to focus on its stronger markets. It confirmed that it will continue operation in cities like Los Angeles.
But is this a sign that OEM is failing in becoming mobility providers? I don't think so.
The reason of GM deciding on Maven was based on the OEMs acknowledging the shift in mindsets about the car ownership (survey results such as millennials not planning to buy a car in the future) and nearing future of autonomous cars. GM had been able to make a successful turnaround from its chaper 11 bankruptcy in 2009, and in ten years been able to make proactive investments in areas it needs to be a successful player in the autonomous vehicle market, and Maven was part of the larger strategy.
Maven and Maven gig stemmed from such larger strategy of the company. Thinking of competition, once autonomous driving is commonly deployed in public roads and used for ride sharing and car sharing service, the strongest player could be the ones who dominate the platform, not the OEMs nor the autonomous driving technology companies. Easily said, companies like Uber and Lyft could be the winners as they have the closest link to the customers, where GM doesn't currently have any data of. Thus, Maven is there for GM to learn the new market (in)directly and get the company prepared for the new market, and thus I don't think it is a sign of failure but a sign for a more focused approach in allocating its resources.
But is this a sign that OEM is failing in becoming mobility providers? I don't think so.
The reason of GM deciding on Maven was based on the OEMs acknowledging the shift in mindsets about the car ownership (survey results such as millennials not planning to buy a car in the future) and nearing future of autonomous cars. GM had been able to make a successful turnaround from its chaper 11 bankruptcy in 2009, and in ten years been able to make proactive investments in areas it needs to be a successful player in the autonomous vehicle market, and Maven was part of the larger strategy.
Maven and Maven gig stemmed from such larger strategy of the company. Thinking of competition, once autonomous driving is commonly deployed in public roads and used for ride sharing and car sharing service, the strongest player could be the ones who dominate the platform, not the OEMs nor the autonomous driving technology companies. Easily said, companies like Uber and Lyft could be the winners as they have the closest link to the customers, where GM doesn't currently have any data of. Thus, Maven is there for GM to learn the new market (in)directly and get the company prepared for the new market, and thus I don't think it is a sign of failure but a sign for a more focused approach in allocating its resources.

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