Complementary Mobility Service Operationalization

Of course, observing εh,i is not possible, but weighting all possible values of εh,i in Equation (8) by their density results in the following integral:

( , , ,) , , Finally, we can apply algebraic manipulations and obtain the probability Prh,i of respondent h selecting product i among a set of product alternatives J in a mathematically convenient

In cooperation with a German consultancy firm, and based on elaborate discussions with EV experts (three workshops with three experts plus four telephone interviews with CEOs of car sharing companies) as well as the analysis of industry reports, we identified nine important complementary mobility services (see Table 2-2). The nine selected services are frequently mentioned in the media, and expectations are high that they might complement EV technology. Some of the services can increase consumers’ perceived ease-of-use and usefulness by reducing time-dependent costs (e.g., saving the time required to pay and park)

2.3 Complementary Mobility Service Operationalization

or by increasing brand loyalty by forming online communities (Algesheimer et al. 2006) (e.g., social network app in car); others offer new driving experiences and make driving more exciting and intelligent (e.g., providing visual real-time updates on traffic information).

All nine complementary mobility services can be classified into two classes. One class of services is specific for electric vehicles and the other class can — in principle — also be integrated in traditional vehicles. The first class includes “Intelligent charging stations” and

“Vehicle-to-Grid” (V2G), two services that certainly make only sense for EV. “Intelligent charging stations” is a demand side management instrument that could be used to improve energy efficiency, reduce time of use, allow quick demand response, and enlarge the spinning reserve (Palensky and Dietrich 2011). “Vehicle-to-Grid” (V2G) is an energy system that realizes large synergies between the vehicle fleet and the electricity system. For society, the advantages of developing V2G include an additional revenue stream for cleaner vehicles, increased stability and reliability for the electric grid, lower electric system costs, and (eventually) inexpensive storage and backup capacity for renewable electricity (Kempton and Tomić 2005). For consumers, V2G might serve as another source of income if electricity providers offer real time prices for energy; they can charge their battery, when energy costs are low, and feed in the electricity grid in phases of high demand and high prices.

The other seven services belong to the second class and can improve the utility of both, electric and conventional vehicles. For example “Augmented reality services via head-up displays”, which is not restricted to electric engines, use the windshield as a projection surface for displaying virtual content and may help drivers detect and respond to traffic changes more quickly and increase navigational accuracy (Fadden et al. 1998),. Although these seven

complementary services would be or have already been used in conventional vehicles, their availability might contribute more utility for electronic vehicles than for conventional cars.

Table 2-2: Complementary Mobility Services

Complementary Mobility Services Explanation

Intelligent charging station Intelligent charging stations simplify charging the EV battery. They enable to automatically identify drivers and to bill energy consumption.

Vehicle-to-Grid (V2G)

To realize substantial synergies between the EV fleet and the electricity system, V2G refers to the return of electricity from the battery of an EV into the electric grid. Drivers can help mitigate peak demand shocks and earn money at the same time: They can charge the battery, when energy costs are low and feed in the electricity grid in phases of high demand and high prices.

IT-based parking

Bills may be authorized and paid directly from the EV for certain products or services (e.g., fuel bills, parking fees, or tolls).

Connection to mobility providers

By contracting with mobility providers, drivers may rent and switch batteries offered by mobility providers. Moreover, mobility providers offer intelligent services (such as traffic or travel information) that can also be booked.

Remote diagnostics and updated supply

The software (e.g., operating system) adopted in EVs may be remotely controlled and updated by car repair shops. Meanwhile, remote diagnostics may be offered in the event of errors or defects.

In-car apps, purely vehicle-related function

In-car apps are software applications that equip EVs with additional functions directly related to driving (e.g., driver logs, electricity cost logs).

In-car apps, not purely vehicle-related function

In-car apps that are not directly related to driving, e.g., social media or music apps.

Augmented reality services via head-up displays

Augmented reality services automatically identify and project relevant information on the windshield via a head-up display. The mentioned examples include navigation, information about electricity consumption, prices for nearby recharging stations as well as hotel and restaurant recommendations.

Taking an example, bundling new complementary services like “IT-based parking” with EVs would make the EV market more attractive. Advertisements and word-of-mouth conversations about self-parking could firmly grasp customers’ attentions and create a strong innovation image for these companies and their products. Customers always pay more attention to innovations and might regard such developments as a breakthrough that could

2.4 Study 1: Identification of Most Important Complementary Mobility Services

help them move quickly through the first stages (create product awareness) in the adoption process (Armstrong et al. 2010). Although EV development and service innovations are relatively independent, more innovative companies should have more experience and passion on new product development. In turn, that could increase the success of new products (higher sales and longer sale duration in this situation) (Cooper and Kleinschmidt 1987). Facts also supported our inferences: the world’s first experimental prototypes of automatic parallel parking was developed at INRIA on a Ligier electric car in the mid-1990s (Paromtchik and Laugier 1998), and BMW announced in January 2014 the following for their new “IT-based parking” service that is first exclusively available for their i-Series (Brigl 2014).

Moreover, complementary mobility services could be aligned with the special needs of EVs. Strongly market-oriented car manufacturers are well-advised to not only sell their EVs at a low price and to advertise the technology itself but to also think about improving the holistic driving experience (Armstrong et al. 2010). For example, the combination of

“Augmented reality services via head-up displays” and EV can create a better holistic driving experience. Obviously, the limited driving range is one of the largest barriers for EVs adoption. “Augmented reality services via head-up displays” could provide access to vehicle and environment-related information, such as the current driving conditions and battery charge, route guidance and nearest charging stations and potentially, with which even could educate drivers in their energy efficient driving skills.

2.4 Study 1: Identification of Most Important Complementary