An autonomous EV fleet management solution, for an evolving world.

Applied ProjectCIS 593 -Team 7

Industry/Company Analysis

Tesla

Prime innovator in the “energy” industry.

Has sold 4 different types of vehicles (Model S,X,3,Roadster)

Presently most valuable car maker in the world (market cap) 52.91B (04/04/17)

Emerging into solar, lithium, and freight industries.

CEO is Elon Musk

Uber

Started out as UberCab by CEO Garrett Camp.

Uses independent drivers with their own vehicles in lieu of branded taxi cabs

Goals and Objectives

Obtain fleet management agreement with Uber - a ridesharing company

Stepping stone to further growth after proven success through rollout

Increase Uber’s performance through Electric Vehicle use, and low cost energy procurement

through Solar energy and Supercharging stations

Big Data analytics provides information on:

Travel times

Average Fare per ride

Average speed per route

Reduction in vehicular accidents and malicious driving such as drinking and driving or road rage

from heavy traffic

MIT Study: Traffic Reduction in NYC

Alternatives Considered

Potential alternatives in selecting a competitor to Uber such as Lyft

Could also begin a new competitor in the marketplace, owned as a subsidiary to Tesla

Partner with Yelp/UrbanSpoon/OpenTable to create an all-encompassing

experience

Partner with sporting events or sporting teams to advertise on vehicles or

transport attendees to/from events

Fleet for private organizations such as Progressive, Dodge Phelps, US Armed

Forces, Meals on Wheels, or CPS.

Reason for Selecting

Tesla is at the nexus of many technologies which can be combined into various

products.

Able to impact the energy market as a whole, creating fresh competition with emerging vehicular

technologies, upsetting the status-quo.

Cars function as IoT devices, can manipulate their use or change their programming in real time

Easy to convert a Taxicab to sports events transportation depending on surge demand

Personalized mass transit is the future, people loathe public transit

China is already converting their taxi fleets to EV use as a pollution reduction initiative

Risk Mitigation/Sustaining Innovation

Risks: Vehicle accident/insurance loss, cannot generate cars fast enough

(Supply vs Demand imbalance), Customer lack of acceptance

Sustaining innovation: Frequent software patching/updates and testing, hiring

great employees, advertising campaigns, safety audits, government

approvals, financial transparency, Training(Lean/Six Sigma/TPM), Continuous

process improvement of production supply chain.

AS - IS and TO - BE Process

Transformation

Functional areas affected

Research & Development Unit:

Tesla has to form a new development team to involve in this new API for the customers end and the provider end to have a

seamless communication between each other.

Infrastructure Unit:

Tesla should have infrastructural changes for the autonomous fleets from uber to be accommodated in its maintenance

centers and automatic charging points.

Insurance & Claims Unit:

Tesla should make a clear deal with the taxi service providers for the type of insurance it opts for and also regarding claim

related queries.

Transformation

Synergies created

A perfect driving pattern is maintained by these autonomous vehicles that creates a better care for the customers and

also reduces the cost due to any accident to the government

A better transportation model will be created to drive back people who will not be able to drive vehicles on their own due

to various reasons.

Transformation

Impact on Operations

Availability:

Technical error or network issues can cause unavailability of cars in the app

Acceptability:

The level of acceptance from the consumers to this whole driverless transportation

Software Architecture

Software Architecture

Customer Value

Rollout Timeline & Milestones

Measures of Success

Financial Analysis

Main assumptions for our calculations:

1. Vehicle drives about 30,000 miles/year

2. Replace fleet every 5 years ( lease agreement)

3. Tesla covers the vehicle insurance fees

4. Uber will buy into our solution

5. Market acceptance

Savings to Uber

500 vehicles : ~$11 Million in savings per year

P, M,O Scenarios

Variations in: Parking lot space (lease per car per year), vehicle production costs,

Lease price

GO !

Questions?