May 21, 2018—Ford is undergoing a transformation, and it’s all about leveraging technology, as noted in a recent article by investing website The Motley Fool. Ford reported 2018 first quarter earnings that showed improving financial conditions for the OEM.
While Ford is putting an emphasis on cutting costs and revamping its vehicle lineup, the company is also investing in the future of mobility and thus setting itself up for auto industry leadership, The Motley Fool contended.
While the millennial generation is starting to impact the U.S. economy, the young adults in that group are making financial decisions that are causing many companies to rethink how they conduct business. One emerging trend is a “sharing economy,”in which many people are forgoing ownership of possessions in favor of a “pay-as-you-go” setup. That has led to ride-hailing companies like Uber growing in popularity.
One manner in which Ford is approaching the evolving sharing economy is by utilizing cars-as-a-service. The OEM has recently launched startups or subsidiaries such as Ford GoRide (for non-emergency medical transit), Ford GoBike (an electrified bike-sharing setup in the San Francisco area), and Chariot (a ride-hailing service currently in five U.S. cities and London). Ford also recently expanded its mobility team, the division that oversees such subsidiaries.
Ford has said 2018 will be the year that many of its start-ups expand aggressively to stay ahead of competing OEMs. Its ride-hailing service, Chariot, of example, is expected to expand to new cities. With consumer preferences for transportation shifting, Ford is setting itself up to thrive in a sharing economy, concluded The Motley Fool.