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Third Industrial Revolution Consulting Group<br />

Object sharing implying a (public or private) third party owning the goods to be shared is<br />

currently most common in the mobility sector. Offers like Vel’Oh and Carloh (Luxembourg-City),<br />

Vël’ok (initiated by CIGL Esch/Alzette and supported by eight municipalities in the south of<br />

Luxembourg) or Nordstad-eMovin (in the north of Luxembourg) are mobility services that place<br />

bikes or cars at the disposal of the public. Such initiatives favor access to mobility over bike or<br />

car ownership. Internet of Things technology benefits the spread of such initiatives. Sensors<br />

allow tracking the vehicles and evaluating and controlling their use. Employing mobile apps,<br />

users can be informed about the availability of a vehicle, perform reservations or pay the<br />

utilization fees. A 2016 analysis by Morgan Stanley estimates the global market for shared<br />

mobility services by 2030 will exceed $2.5 trillion per year. 338 The estimate is based on shared<br />

mobility comprising one-fourth (26%) of 20 trillion miles driven worldwide at a cost of 28 euro<br />

cents per kilometer. 339<br />

A third type of sharing is the collaborative model where users themselves manage the<br />

resources and means of production. Community supported agriculture and energy cooperatives<br />

are current examples of this type of activity, but so too are the common creation and sharing of<br />

immaterial goods such as knowledge pools (i.e. Wikipedia), open source software, and open<br />

design, etc., or commodities (open hardware) produced via community owned 3D printers.<br />

Unlike the two other operating models described above, collaborative models require a high<br />

level of confidence between the users and confidence in the community as a whole. Social<br />

capital is vital. While the use of Internet of Things technology for all of these initiatives is not<br />

essential, it can help boost productivity and reduce marginal costs for these activities.<br />

Morgan Stanley’s bullish future for shared mobility is based on the current trend of Internet<br />

companies’ investments – Apple, Google, Alibaba, etc. – in the mobility sector. Apple, for<br />

example, now spends more on mobility R&D than is collectively spent by the top 14 auto<br />

manufacturers; or $5 billion compared to $192 million, respectively. 340<br />

338 Hanley, Steve (2016) Shared Mobility Will Be $2 Trillion Market By 2030, Gas2.com, June 5, 2016,<br />

http://gas2.org/2016/06/05/shared-mobility-will-2-trillion-market-2030/.<br />

339 Elmer-DeWitt, Philip (2016) Morgan Stanley is bullish on the Apple car, Ped.com, May 25, 2016,<br />

http://ped30.com/2016/05/25/apple-car-morgan-stanley/<br />

340 Ray, Tiernan (2016) Apple R&D Way More Than Detroit, Says Morgan Stanley; Big Cloud Spending? Barron’s,<br />

May 25, 2016, http://blogs.barrons.com/techtraderdaily/2016/05/25/apple-rd-way-more-than-detroit-saysmorgan-stanley-big-cloud-spending/.<br />

395

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