Set up a consulting activity to help companies electrifying their fleet

Abstract

In a society where all our habits and rituals are changing as fast as ever, the evolution of mobility is as fascinating as unpredictable. Autonomous vehicles are on everyone’s lips, the increasing prices of oil keep worrying every household worldwide, company cars are a central topic in almost every company, alternative sources of energy are an inspiration for people that care about their environmental footprint and the use of individual cars is more than ever being challenged by interesting substitutes such as public transportation, ebikes and car-sharing. It is in this regard that Lampiris, a Walloon energy provider owned by Total S.A., is looking to settle on the market of electric vehicles. This report, conducted in the scope of an In-Company project by two students of the Vlerick Business School, has as objective to give an answer to whether and how Lampiris could have a role to play in the development of a service related to setting up a fleet electrification plan. Having set up its own plan aiming to have a fully electrified fleet of vehicles by 2021, the Belgian company possesses the necessary level of expertise, and is now fully ready to support other companies in the switch towards electric. Additionally, the financial and infrastructural support from parent company Total ensures a sense of reliability and trust, allowing Lampiris to build upon it. In order to reach the fixed objectives, twenty interviews with fleet managers, CEOs, EV and mobility experts have been conducted and based on these as well as on some extensive research, two business models are proposed and fully developed in this report. The development of these business models has strongly been influenced by the actual state of the market of electric vehicles. The main observation done through the research is how much people try to convince themselves neither them nor the market are ready to embrace electric mobility. However, the market proves everyone wrong as anyone willing and motivated to go electric can already do so today as models of electric vehicles are invading the markets and charging infrastructure is getting installed at several strategic spots. This report thus presents two business models that Lampiris should focus on to establish itself as expert and leader on the market. The first business model is fully related to supporting companies with their fleet electrification plan and represents the biggest market. The second solution has been developed with the objective to serve another customer segment, allowing owners of public parking to invest in the installation of charging infrastructure in order to attract the community of electric vehicles to their facilities. Both solutions follow the same angle of approach and have some common goals, namely clarifying the many uncertainties that compose the electric market today, as well as raising awareness about why electric is a good and positive solution for everyone. This will be done through the creation of an online platform based on the freemium model. E-learning, test-drives, specific tools, surveys and decision trees and general information are the main elements that are to be found on the platform. Whenever a company gets interested in including electric to its fleet or services, it reaches out to Lampiris and both parties get to work, starting with a meeting between the concerned parties. It is all about planning, discussing what has to be put in place, and this for both business models. Step three is about the activation of the plan, focusing more on the how and on finalizing the last details of the plan. The fourth and last phase is the full execution of the plan, namely the purely operational part. As it is the last step of our business models, full maintenance and continuous follow-up are essential in order to ensure a longlasting relationship. Both solutions tend to be complementary. Having a similar structure with some similar focus points, like the online platform, they both got created starting off from totally different questions and focus on distinct customer segments. Offering both services will allow Lampiris to broaden its angle of approach and to cover more needs and a larger demand, while developing the solutions simultaneously and similarly. The services that are to be launched are considered as viable and highly profitable. If they were launched individually they would break-even after a couple of months. The break-even point is to be reached even faster if both models were launched together, as initial costs may be cut thanks to possible combinations in marketing and the creation of the e-learning platform. Lampiris has to be aware that starting such a business represents very low risk. Some serious effort is required, but the initial investment is relatively low, as it mainly consists of the creation of the e-learning platforms and the marketing and advertising costs. It is obvious that to some extent, Lampiris is depending on the development of the market, as it is waiting for manufacturers to offer new and better models, for batteries to have better autonomy and for the infrastructure to further expand, in order to be able to counter the fears and uncertainties of critics. However, by offering these services, Lampiris not only tries to seize the opportunity the electric market offers, but it wants to be a main actor in the development of the market itself by pushing, but especially guiding people towards electric. However, mobility today is much more than only electric as one is fully aware of how much mobility is about to change in the next decade. Even though experts, surveys and studies all go in opposite directions, the consensus on the impact it will have on our daily lives is easily reached. Therefore, Lampiris has to be more than ever aware that electric vehicles are only a first step towards a better mobility, but that other components like e-bikes, car sharing, and public transportation are part of it. It is up to Lampiris to include these features in the fleet electrification plans, as well as to build smart charging points that will be able to embrace autonomous vehicles as soon as these will start invading our markets.