CASE STUDY THE FUTURE OF CARSHARING IN MADRID Objectives Know how to analyze the evolution of attributes. Importance of innovation strategies and models for rescuing businesses. Car sharing companies are not going through their best moment, after a 2020 characterized by mobility restrictions that sought to mitigate the spread of Covid-19, the companies have taken a series of measures that aim to recover the levels of activity they had in 2019, however, mistrust, fear and other variables such as teleworking have made a quick and urgent recovery difficult. The Beginning of Carsharing Contrary to what some may think, Carsharing is not an exclusive system of new technologies, although they have helped its expansion, they are not the reason for its origin. Car sharing was born in Switzerland in the 1940s thanks to a program called "Sefage" that sought to promote the acquisition of houses and cars in timeshare under the guise of cooperativism. Later, in the 1970s, some European countries would have initiated and included a Carsharing project in their transport systems, including the United Kingdom, Austria, Holland, Sweden and France. Subsequently, car sharing has had numerous initiatives not only in Europe but also in the United States, being a flagship theme in programs aimed at improving the environment and the creation of smart cities. An example of the impact of the system was the creation of the STARS project in 2017 (Shared mobility opporTunities And challenges foR European citieS), a research and innovation program of the European Union 2 Technological Innovation and Technology of Organizations EUDE 2021 This content is property of the author, and assigned to the European School of Management and Business. Its dissemination, reproduction or total or partial use for any other purpose other than teaching is prohibited. All rights reserved. H20201 , and whose main objective was "to close the gaps of the potential targets of car sharing services". Currently, the model is found in most European cities, it has had a dissemination process that has allowed it to be easily and effectively adopted by both citizens and the different actors in the transport sector. Carsharing in Madrid Particularly in Spain, by the year 2015, carsharing had several private initiatives mainly promoted by Startups such as Respiro, Bluemove and Clickcar, where B2B (Business to Business2) solutions predominated, however, by the middle of this year it would arrive a fleet of 350 100% electric cars from Car2go and owned by Daimler3, with the aim of launching a car rental system that would allow users to manage the reservation, use and payment of the car via mobile, and with a usage billing per minute. Car2go customers for 2015 reached one million in the world, users in Europe represent the corresponding 60%, it also had a total fleet of close to 1,600 cars. The acceptance of the service was satisfactory, the introduction of a small car such as the Smart Fortwo, with simple handling, sufficient power for routes within the city, the possibility of parking the car in blue and green zones4 without having to pay and a service price of 0.19/minute were variables that were competitive with other transport alternatives such as the metro, bus and taxi. By April 2016, in Madrid, Car2go reached 52,000 registered users, increasing the car fleet to 500, although the service coverage was only 52 square kilometers within the city, users had assimilated a new transport system whose demand was growing day by day, which is how the PSA Peugeot Socit Anonyme automobile group announced at the end of the year the arrival of Emov with 500 electric cars, 5 doors, a range of 150 kilometers, with greater coverage than Car2go and at the same price for minute. On launch day, Emov had 4,000 registered users, its registration process authorized the user 24 hours after their 100% online request thanks to the digital validation of the required documents and that they are uploaded through the application that, unlike of Car2go, forced to physically validate the driver's license. Consolidation of the Model For 2019, the model would have undergone significant changes, mainly due to the incursion of two new actors, at the end of 2017 and with the help of Ferrovial5 and Renault, Zity arrives; in the same way, in the first half of 2018, Wible does it through Kia and Repsol, each with a fleet of 500 cars. In the early stages of the model, with Car2go and Emov as protagonists, the main differentiating attributes were coverage, autonomy, price and the size of the car. By 2021, companies offer their customers a series of features in the product and in the Technological Innovation and Technology of Organizations EUDE 2021 This content is property of the author, and assigned to the European School of Management and Business. Its dissemination, reproduction or total or partial use for any other purpose other than teaching is prohibited. All rights reserved. service that seek to adjust not only to their transportation needs but also to their tastes and ease of driving, some of them: - While the autonomy of Car2go and Emov batteries does not exceed 160 kilometers, Zity and Wible cars can reach up to 600 kilometers of travel. - Rates from 0.17 to 0.37 per minute of driving. - Standby billing alternatives, that is, the user can park the car, reserving it to use it again at a cost that can range from 0.09 to 0.19 per minute. - Package offers for hours and days. - Thanks to greater autonomy, greater coverage is offered, up to 200 square kilometers. - The new car models have parking assistants. - Alliances with parking companies. Although the user can leave the car in blue or green zones, these are not always available, which makes it difficult to complete the service. For this reason, alliances have been established that offer the user different possibilities for parking. It should be noted that, at the end of 2019, the carsharing companies had nearly 600,000 registered users, each of them had managed to consolidate itself in an emerging sector based on a differentiated offer thanks to the characteristics of the cars and the offers. at service. Current challenges Undoubtedly, Covid-19 has been a setback for the sector's plans, by March 2021 the sector makes the decision to park the car fleet for approximately three months, later by implementing campaigns and actions aimed at reactivation of the service, only 65% of the operation has been restored compared to 2019 levels. Among the measures taken are renting plans for days and months, prepaid savings packages, new sanitation procedures and greater frequency in car cleaning, establishment of delivery bases (guaranteeing the delivery of the sanitized car), and reduction of rates. The recovery of carsharing may occur from the normalization of mobility and the control of the pandemic, however, other factors must be taken into account that allow a user who has changed their consumption and transport habits to be captivated again, Likewise, the incursion of a new player, Volkswagen's WeShare, who expected to arrive at the end of 2020, but will do so a year late, will be a challenge. Question to resolve of the case: Based on an analysis of the evolution of the attributes of the service, define the stages that have allowed the consolidation of the sector, seeking to identify those attributes that have affected the perception and decision-making of the client.