How Technology and Service Startups Are Disrupting the Automotive Industry

Featured article by Jeremy Sutter, Independent Author

With few major advances in the automotive industry over the last few years, startups are disrupting the market with innovative services and technology. A resistance is forming against the automobile market, which has been mostly stagnant since the release of safety services such as the omnipresent defensive driving school online. Beyond the development of autonomous vehicles, which stand to completely change the very nature of the industry, there are also shifts being made in other areas. Engines, batteries, and other technologies and services are being improved by start-ups that are pushing for a change in the standard.

Competition through innovation

A lot of praise has been directed toward the start-up Mission Motors, for the development of their their electric motorcycle the Mission One. The Mission One is an ambitious motorcycle that was designed in mind of making a high-end, sustainable, and eco-friendly bike on par with gasoline-powered competitors.

The Mission One meets the goals of its creators. The bike is installed with the most energy-dense lithium ion batteries in the market. Utilizing a patented management and cooling system, the Mission One is engineered to efficiently draw out intense amounts of battery power to grant it high-end acceleration capabilities. The bike is also fitted with an induction motor that can deliver 100 foot-pounds of torque. This torque is consistent with the speed range of the bike, and can be fully utilized without the need to shift gears.

Other creative engineering feats managed by the Mission One include its regenerative braking feature. This feature allows the bike to take the kinetic energy produced from braking and converts it into electrical energy to charge its battery.

The bike is also fitted with unique and nifty interface features. Riders can check the status on their bike, download data on their ride, and manage the settings of their bike through an onboard and wireless interface. Using this system, the bike gathers data that helps you analyze its performance and efficiency.

All of these features are packaged with a bike that can be charged through any standard 110/220V wall socket. Depending on the line you use, charging can take from 2.5 to 8 hours. The cost of a full charge is estimated to be roughly $1.90. On a full battery, the Motor One can maintain speeds of 150 mph for 150 miles on just one charge.

Unfortunately, Mission Motors filed for bankruptcy in September, 2015 for reasons beyond the mixed success of their bike. However, the features they presented with their innovative bike still remain formidable and viable for electric automobiles, and presented a welcome possibility change for the stagnant industry.

Maintenance service innovations

Beyond the field of luxury bikes, YourMechanic is an example of a start-up that is changing the industry for maintenance services. YourMechanic is a service that allows car owners to post their car issues on an app that is accessed by a network of mechanics. You are given a quote for the service and are given specific details of the price evaluation. What you pay is dependent on the mechanic you choose, the mechanic’s travel fee, but the parts you need are purchased wholesale. YourMechanic insists that its service is still more cost-effective than a traditional repair shop, because there are no markup costs going into maintaining a bodyshop and a staff.

The primary function of the service is convenience. YourMechanic utilizes an exhaustive screening process that ensures quality among its mechanic selection. This means that each any mechanic you call is certified and trustworthy.

YourMechanic also stands to change the nature of employment for mechanics. It is estimated that mechanics working under the app are making up to three times as much as they did with a traditional auto shop. The app manages this by making the bulk of its earnings through an agreement made with a network of car manufacturers. In return for ensured business from the app, 20-30 percent of the transaction fees for parts goes to YourMechanic.

Car sharing services

Competition is steadily increasing between services that provide riders the chance to call in their transportation. Ridejoy was an app that allowed users to advertise where they were traveling. Other users of Ridejoy could then arrange for willing drivers to car-pool them to their mutual destination. However, the driver did not do this without requesting for payment from the user they were picking up.

Unfortunately, the service did not do very well in the states. Ridejoy ended up returning half of what was raised in funds to its investors. However, the need for car-pooling services is substantially higher in European countries. The European equivalent of Ridejoy, Blablacar, swiftly grew after establishing itself in Germany. To know why demand is much higher for this service in Europe, one only needs to know that car costs are far higher abroad. European cities are also not designed to facilitate car use, incentivizing citizens to use other means like public transport or manual bikes.

The general effect of these start-ups on the automotive industry is overall inconsistent. Start-ups with valid and innovative ideas are both failing and succeeding, but they are still making a mark. As mobile apps, technology, and other fields compete to make the gasoline-powered car obsolete, it is clear that absolute change is inevitable. In the end, it is ultimately intimated that the next great revolution will begin once gas-powered cars become more expensive to fuel than they’re worth.