With Easy Ride trial, Nissan takes new step toward being Uber competitor

A Nissan employee removes his hands from the steering wheel of a self-driving vehicle for Easy Ride service, developed by Nissan and mobile gaming platform operator DeNA Co. (Reuters)
Updated 23 February 2018

With Easy Ride trial, Nissan takes new step toward being Uber competitor

YOKOHAMA: Facing a future in which self-driving cars may curb vehicle ownership, Nissan Motor is taking its first steps to becoming an operator of autonomous transportation services, hoping to break into a segment set to be dominated by Uber Technologies and other technology firms.
In partnership with Japanese mobile gaming platform operator DeNA Co, the automaker will begin public field tests of its Easy Ride service in Yokohama next month, becoming among the first major automakers anywhere to test ride-hailing software developed in-house, using its own fleet of self-driving electric cars.
Easy Ride, which Nissan plans to launch in Japan in the early 2020s, is meant to feel more like a concierge service on wheels, making — for example — restaurant recommendations while the car is on the move.
The announcement follows an agreement by Nissan and its automaking partners Renault and Mitsubishi Motors earlier this month to explore future cooperation with Chinese transportation services conglomerate Didi Chuxing.
These moves mark a push by the automaker to avoid becoming the “Foxconn of the auto industry“: a mere vehicle supplier to ride- and car-sharing companies.
“We realize that it’s going to take time to become a service operator, but we want to enter into this segment by partnering with companies which are experts in the field,” Nissan’s chief executive, Hiroto Saikawa, said in an interview this month.
A person close to the deal has said that the agreement is intended to explore opportunities for Nissan and others to supply battery-electric cars to Didi Chuxing for a new electric car-sharing service it is setting up in China.
He noted however that Nissan and its alliance partners could explore a broader agreement, which might possibly involve Nissan providing self-driving taxi technology to the dominant Chinese ride-hailing service.
Creating an upscale autonomous taxi service, rather than trying to beat other companies on price, could help Nissan against bigger competitors like Uber, market experts say.
“By doing something with a more premium feel, it could allow Nissan to charge more for its service and potentially relieve some of that profitability pressure they could face if they were to try to race to the bottom in terms of pricing,” said Jeremy Carlson, automotive analyst at IHS Markit.
Automakers are looking for ways to profit from the rise of car-sharing services, which along with self-driving cars, are likely to lead to a decrease vehicle ownership and chip away at future profits.
IHS Markit expects global sales of autonomous vehicles will soar to more than 33 million units in 2040 from 51,000 in 2021, while Goldman Sachs has predicted that the ride-hailing market will grow eightfold by 2030 to be five times the current size of the taxi market.
Nissan has embraced new technologies, launching the Leaf, the world’s first mass-market electric car, in 2010. The company was an early proponent of self-driving cars, pledging in 2013 that it would market fully autonomous cars in 2020.
Although it has been rolling out automated highway driving functions and self-parking capabilities in a growing number of its models, rivals ranging from Tesla to Subaru have installed increasingly advanced self-driving features in their cars.
GM and Daimler are building and expanding car- sharing services, and GM has said it plans to launch a self-driving taxi service next year.
Nissan also has its own car-sharing service using its ultra-compact battery electric models, but after years of trials, the service is available only in Yokohama, home to the automaker’s headquarters.
After bringing in Ogi Redzic, who previously led the automotive business group of mapping data firm Here Technologies, to head Renault-Nissan’s mobility services division in early 2016, Nissan in the past year or so has begun to gear up its strategy to compete in the new transportation area.
Its partner DeNA is one of the world’s biggest social gaming networks with 30 million users. The company’s expertise in developing real-time user interfaces and payment systems will help give shape to the taxi service platform.
The company already operates a user-sourced car-sharing app in Japan, and had been developing a self-driving taxi system with a Japanese robotics start-up before teaming up with Nissan.

Leisure chief hails Saudi Arabia’s $64 billion entertainment revolution

Updated 59 min 32 sec ago

Leisure chief hails Saudi Arabia’s $64 billion entertainment revolution

  • Projects in the pipeline exxpected to create over 22,000 jobs and contribute over $2 billion to GDP by 2030
  • KSA’s travel and tourism sector accounted for about $65 billion of the Kingdom’s gross domestic product (GDP) in 2016

RIYADH: Saudi Arabia is on the brink of a $64 billion entertainment revolution, a leisure business chief said on Sunday.

Projects in the pipeline will cater for more than 50 million visitors, create over 22,000 jobs and contribute over $2 billion to GDP by 2030, said Bill Ernest, chief executive of the Saudi Entertainment Ventures Co. (SEVEN). 

Ernest, a former Disney executive and a veteran of the entertainment industry, is already behind SEVEN’s venture with AMC Group to open cinemas in the Kingdom, its first new film venues in over 35 years.

He told delegates at a conference in Dubai on Sunday that Saudi Arabia’s travel and tourism sector accounted for about $65 billion of the Kingdom’s gross domestic product (GDP) in 2016, making it more valuable than the automotive industry, manufacturing, agriculture and banking.

He said travel and tourism in the Kingdom sustained over a million jobs that year, and that the sector had expanded by 38.2 percent since 1997.

SEVEN is one of the first companies in Saudi Arabia to embrace government investment plans of $64 billion to develop entertainment over the next decade. Ernest sketched out SEVEN’s plans for the funds, giving details of a massive multi-cluster family entertainment destination in Riyadh.

Featuring cinemas, augmented reality activities, green open areas equipped for sports and aquatic activities, live show venues and restaurants, the Riyadh destination will be the first of many such projects planned across the country, as part of the Kingdom’s Vision 2030 program.

Job creation, Ernest said, was key to the project’s viability. “Our offerings will create exciting new roles for ambitious young Saudi nationals. We will need to provide training in new skill sets.

“While employing locals, we also want to create friendly, awe-inspiring environments where Saudi nationals will want to spend quality time with their family and friends.

“SEVEN aims to be the leader in Saudi Arabia’s entertainment ecosystem. We aim to facilitate the presence of both international and local brands, and in doing so, become the national entertainment champion.”