Swedish premium automaker, Volvo Cars today launched an entirely new and independent mobility brand, M. Through the single letter brand M, the company is spreading wings in its old venture, yet the present hot mode of road transport, ride-hailing.
Unlike Uber and Lyft that just drops passenger from point A to point B, Volvo Cars has designed brand M to deliver superior services to its customers. For this, it aims to provide reliable, on-demand access to cars and other services through an ‘intuitive app.’ The new mobility brand’s app will record user’s needs, preferences and habits, thus enhancing customer relationship.
“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’,” commented Håkan Samuelsson, Volvo Cars President and Chief Executive.
New Brand, Old Business
The Sweden-based car maker is a pioneer in the car-sharing venture. Volvo Cars started car-sharing service in Sweden under the name Sunfleet two decades back. With a fleet of 1,700 cars and 500,000 annual transactions, Sunfleet is the leading car-sharing service provider in Sweden.
Correspondingly, Volvo Cars will leverage its learning from the old business and integrate it into the new mobility brand M. The expertise will enable brand M to create differentiation in facilitating new mobility services.
The brand M is presently underway on developing a proprietary learning technology that will enquire riders about their specific needs rather than asking only pick-up and drop-off points. Here, the Volvo Cars will elaborate on the definition of “specific needs” later this year.
“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. We see the opportunity to offer a premium experience,” mentioned Bodil Eriksson, CEO of Volvo Car Mobility.
Building New Sources of Revenues
Mobility, particularly in urban and metro backdrops, is going through a fundamental transformation. Realizing this, Volvo Cars once again plans to head that change in its own way. Samuelsson emphasized that the introduction of brand M will definitely generate new sources of revenue for Volvo Cars. And the brand is also integral to the company’s goal to build more than 5 million direct consumer relationships by 2025.
Following the lineage, Volvo Car will develop and test new mobility brand M concept in Stockholm, Sweden. Furthermore, an extensive Beta test of M will happen this autumn.
The brand M will begin the operations in Sweden and the US in the spring of 2019. At the same time, Sunfleet operations will also be merged into brand M.