
Accelerating New Mobility Entrepreneurship in Emerging Economies
With global greenhouse gas emissions exceeding 380 PPM1, commute times in emerging market megacities often taking more than four hours2, and air pollution causing over two million deaths worldwide annually3, policymakers and business leaders are looking for ways to mitigate the environmental and human health impacts of automotive transportation. The rapid increase in mobile technology and internet access have enabled entrepreneurs around the world to disrupt traditional government-run transportation systems by providing faster and cheaper movement of people primarily in cities.
New mobility – defined as moving people, moving goods and moving less in ways that are cleaner, greener, safer, healthier, and more equitable – is an emerging field in the transportation sector where entrepreneurs are leveraging mobile technology to address these environmental and social problems. This research project sought to answer the following question: What enables new mobility entrepreneurs to successfully start and grow new ventures? It looked to understand the current state of new mobility and to provide a resource to accelerate entrepreneurship in the field. The team conducted more than 60 interviews in four markets – Brazil, India, China, and South Africa – and corroborated their on-the-ground insights through secondary research.
A number of findings emerged from this primary and secondary research. First, urban transportation means different things in different places. Second, although common barriers such as corruption, funding availability, and regulatory bureaucracy exist, different markets approach entrepreneurship in different ways. Third, similar business models emerged in each country, but each business was implemented differently based on the legal, cultural, and infrastructural environment of the region. A detailed analysis of research findings is included in the Observations section.
This research is relevant to both policymakers and entrepreneurs. Policymakers have historically separated transportation agencies by mode, but this has led to non-integrated systems with disjointed connection nodes and high multi-modal travel costs. By creating open communication channels between agencies, streamlining municipal-level payment systems, and providing funding and resources to entrepreneurs, policy makers can improve city transit. Entrepreneurs, on the other hand, can be overly ambitious and think that their product is right for everyone. By focusing strategically on their customers, network, local context, and operational execution, entrepreneurs can improve their chances of success and create greater environmental and health impact. The team observed that the most successful startups had begun with a narrowly focused customer base in a small market that they knew. While the study targeted urban areas in four specific emerging economies (Brazil, India, China, and South Africa), the insights have applicability to other developing markets and to developed markets such as the United States.
Leveraging these insights, the team developed A Guide to Success for New Mobility Startups to help early-stage new mobility entrepreneurs start and grow new ventures. The Guide is structured around a checklist of 20 questions that address the most common stumbling blocks this group of entrepreneurs face. Each question is supplemented with information that helps the entrepreneur develop an
actionable answer. The combination of a simple checklist with thorough guidance, case studies, and additional resources is designed to help entrepreneurs stay motivated, focused, and effective amidst the emotional and financial volatility that comes with starting a new business. The tool is being integrated into the online UM-SMART MobiPlatform. For full text of the Guide, see Appendix A.
NextEnergy
Desatnik, Aaron
Miranda-Blackney, Therese
Reisman, Elizabeth
Sekhon, Jason
Shingledecker, Samuel
Zielinski, Sue