Swedish automaker Volvo has introduced a new mobility brand called M. The first full- fledged mobility service ‘M’ that will be launched in 2019 in Sweden and the US. The newly announced mobility brand by Volvo is basically an app-based service that offers on-demand cars and services.
"We’re focused on the way people use the cars they own, which sets us apart. We aim to provide a real alternative to that experience. It should enable us to live life on our terms, getting things done and maximizing precious time," said Bodil Eriksson- CEO, Volvo Car Mobility.
Also commenting on the new brand introduction, Håkan Samuelsson, Volvo Cars president and chief executive said, “Private car ownership will not disappear, but as a carmaker, we need to embrace the fact that it will reduce and, more importantly, change. We have a proven and profitable concept in our home market that we intend to leverage as we develop a global concept. Volvo Cars is becoming more than just a car company. We recognize that urban consumers are rethinking traditional car ownership. M is part of our answer. We are evolving to become a direct-to-consumer services provider under our new mission 'Freedom to Move'."
With this new launch, Volvo will expand from merely being a car manufacturer into a fully-fledged mobility services provider. However, Volvo is already offering subscriptions to cars through the app-based Care by Volvo service and Volvo M is a further development of the same. One interesting fact is that Volvo has selected the name for this new venture is "M," which is the name used by BMW's performance division. However, Volvo's M mobility company is completely different from BMW's performance arm but it will be very interesting to see the reaction of BMW on the same.
Basically, the aim of the new ‘M’ brand by Volvo is to offer "dependable, on-demand access to cars and services through an intuitive app." With the help of this app, the users will be able to book a car through an app in order to replace traditional means of public transportation. However, in order to create the new mobility brand ‘M’, Volvo is absorbing its previous car sharing venture, Sunfleet, Sweden's leading car sharing service with 500,000 annual transactions and a fleet of 1,700 cars. Also, rather than simply tell users where they can pick up a car; M is also working to develop learning technology to discover what users need from the service.
Apart from this, Volvo is also planning proprietary software in order to customize the offerings of M based on specific needs of the users. The company expects to serve 5 million users, across the various Volvo Group services within the next 10 years. However, apart from saying that the ‘M’ brand will be an app, Volvo didn’t reveal any other details about the brand and we are expecting some details in the coming months before the Swedish luxury carmaker launches the brand in Sweden and US.
Currently, the global battle for the mobility market is being dominated by Daimler and BMW, through their newly-created joint venture. Last month in June, Daimler said that its mobility services alone numbered 23 million clients in May 2018, registering a growth of 88 percent compared to the number posted for the same period in 2017.
Stay tuned to V3cars.com for further details on the Volvo’s upcoming ‘M’ mobility brand.