Autonomous EV fleet management solution
- 1. An autonomous EV fleet management solution, for an evolving world. Applied Project CIS 593 -Team 7
- 2. Industry/Company Analysis Tesla Prime innovator in the “energy” industry. Has sold 4 different types of vehicles (Model S,X,3,Roadster) Presently most valuable car maker in the world (market cap) 52.91B (04/04/17) Emerging into solar, lithium, and freight industries. CEO is Elon Musk Uber Started out as UberCab by CEO Garrett Camp.
- 4. Goals and Objectives Obtain fleet management agreement with Uber - a ridesharing company Stepping stone to further growth after proven success through rollout Increase Uber’s performance through Electric Vehicle use, and low cost energy procurement through Solar energy and Supercharging stations Big Data analytics provides information on: Travel times Average Fare per ride Average speed per route Reduction in vehicular accidents and malicious driving such as drinking and driving or road rage
- 5. MIT Study: Traffic Reduction in NYC
- 6. Alternatives Considered Potential alternatives in selecting a competitor to Uber such as Lyft Could also begin a new competitor in the marketplace, owned as a subsidiary to Tesla Partner with Yelp/UrbanSpoon/OpenTable to create an all-encompassing experience Partner with sporting events or sporting teams to advertise on vehicles or transport attendees to/from events Fleet for private organizations such as Progressive, Dodge Phelps, US Armed Forces, Meals on Wheels, or CPS.
- 7. Reason for Selecting Tesla is at the nexus of many technologies which can be combined into various products. Able to impact the energy market as a whole, creating fresh competition with emerging vehicular technologies, upsetting the status-quo. Cars function as IoT devices, can manipulate their use or change their programming in real time Easy to convert a Taxicab to sports events transportation depending on surge demand Personalized mass transit is the future, people loathe public transit China is already converting their taxi fleets to EV use as a pollution reduction initiative
- 8. Risk Mitigation/Sustaining Innovation Risks: Vehicle accident/insurance loss, cannot generate cars fast enough (Supply vs Demand imbalance), Customer lack of acceptance Sustaining innovation: Frequent software patching/updates and testing, hiring great employees, advertising campaigns, safety audits, government approvals, financial transparency, Training(Lean/Six Sigma/TPM), Continuous process improvement of production supply chain.
- 9. AS - IS and TO - BE Process
- 10. Transformation Functional areas affected Research & Development Unit: Tesla has to form a new development team to involve in this new API for the customers end and the provider end to have a seamless communication between each other. Infrastructure Unit: Tesla should have infrastructural changes for the autonomous fleets from uber to be accommodated in its maintenance centers and automatic charging points. Insurance & Claims Unit: Tesla should make a clear deal with the taxi service providers for the type of insurance it opts for and also regarding claim related queries.
- 11. Transformation Synergies created A perfect driving pattern is maintained by these autonomous vehicles that creates a better care for the customers and also reduces the cost due to any accident to the government A better transportation model will be created to drive back people who will not be able to drive vehicles on their own due to various reasons.
- 12. Transformation Impact on Operations Availability: Technical error or network issues can cause unavailability of cars in the app Acceptability: The level of acceptance from the consumers to this whole driverless transportation
- 14. Customer Value
- 15. Rollout Timeline & Milestones
- 17. Financial Analysis Main assumptions for our calculations: 1. Vehicle drives about 30,000 miles/year 2. Replace fleet every 5 years ( lease agreement) 3. Tesla covers the vehicle insurance fees 4. Uber will buy into our solution 5. Market acceptance
- 18. Savings to Uber 500 vehicles : ~$11 Million in savings per year
- 20. P, M,O Scenarios Variations in: Parking lot space (lease per car per year), vehicle production costs, Lease price GO !
- 21. Questions?
Editor's Notes
- #15: Fuel costs savings: It’s the first added value the customers will gain. Planning, budgeting, and mitigating the variable cost of fuel have been a big challenge for fleet managers and fleet management business overall. Less maintenance costs and times: Tesla cars don't require the traditional maintenance services such as oil changes. As the cars don't have many moving components in its structure beyond standard suspension components, the wear and tear is minimized, which eventually reduce maintenance costs. Reduced total cost of ownership: Leasing removes vehicle depreciation and disposal costs. The fleet will always have the latest technologies. Fleet management system: that’s comprehensive, efficient, and real-time to operate and control all services. It includes the fleet telematics capabilities such as assets tracking and routing optimization which improve performance. Data analytics are critical to fleet management to maintain vehicles data, process it, and transform it to actionable information and practical KPIs. Higher safety standards (lower insurance rates) Customer can reallocate technical resources to focus on differentiating capabilities to compete such as R&D and customer service Being an environment friendly
- #16: Rollout 500 cars for 5 years 2023: add 100 cars each year
- #17: Customer acceptance & satisfaction rate: it gives indications of current and future demand. Safety incidents rate: it measure how credible the autonomous transportation is when it comes to maintaining higher safety standards than traditional transportation.. Percentage change in profit: that’s the bottom line measure. It measure how much this proposed service is contributing to the overall profits compared to the current service. Time optimization when riding: longer than average means the routing data is not effective enough Pick up rate: percentage of time the vehicle is used by a rider over the total routing time. A utilization rate higher than the current driver utilization rate should be set and measure for success ( ~70% +) Route utilization: Utilizing the fastest route to the desired destination