Evolution of the Dealership
Digital new entrants and ownership alternatives have emerged to pose a threat to the dealership model – dealers must invest in digital experiences and expansion of mobility service offerings to improve their position in the evolving mobility landscape.
Technologies and new business models are impacting the dealership channel and the mobility landscape more broadly. Digital new entrants and end-to-end digital dealerships have proliferated and are disintermediating the dealership’s traditional role in the customer journey. Additionally, mobility service models and, eventually, autonomous driving raise the threat of lower personal vehicle ownership. However, the dealer channel’s unique footprint and inventory scale affords them the opportunity to enhance digital experiences and expand business model offerings in mobility services to take advantage of the evolving ecosystem.
Below we describe the themes and drivers of change in the mobility landscape and dealership channel, and provide an outlook for the future role of dealerships.
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