I spoke about shared mobility six months ago at the Vehicle Electronics & Connected Services conference in Gothenburg. A poll during my session revealed a striking prediction: Mobility as a Service (MaaS) might surpass traditional car ownership in Stockholm by 2040.
As a long-time user of Volvo’s car-sharing services—Sunfleet, M, and most recently Volvo On Demand—I saw this future within reach. That’s why Volvo’s decision to discontinue Volvo On Demand feels like a step back—not just for Volvo but for the shared mobility movement.
Why This Matters
Volvo On Demand embodied the principles of sustainability, reducing urban congestion and emissions while offering a cost-effective, user-friendly alternative to car ownership. Volvo even claimed that one shared car replaced up to eight privately owned ones—a remarkable impact on the climate.
With 200,000 customers and an annual revenue of 250 million SEK, the service was on a promising growth trajectory. Achieving profitability would have required either a modest price increase of 225 SEK ($20) per user annually or acquiring 36,000 new customers—adjustments that seem well within reach given market trends.
A Missed Strategic Opportunity
Closing Volvo On Demand contradicts Volvo’s bold commitments to electrification, net-zero emissions, and innovation. It also leaves loyal users, like myself, without a reliable service that felt like the future of mobility. This decision opens the door for competitors like HYRE, Toyota’s Kinto, and Tesla Robotaxi to lead the growing shared mobility market.
A Path Forward?
What if Volvo reimagined its approach by turning Volvo On Demand into an independent venture and inviting customers to become fractional shareholders? This model could deepen loyalty, align financial incentives, and foster a shared vision for sustainable mobility. Other industries have successfully leveraged community ownership—why not shared mobility?
The Future of Mobility
While Volvo’s exit is disappointing, it creates opportunities for others to innovate. Competitors can build on Volvo’s legacy and introduce new ideas, such as integrating autonomous vehicles into shared platforms.
What do you think? Would you invest in a shared mobility platform like Volvo On Demand? Who do you believe will lead this market? Let’s shape the future of mobility together.
Comments