Beyond the Start-Up Stage: Strategies for Growth in the Mobility Sector
The automobile’s invention in the late 19th century sparked a wave of entrepreneurial activity. In the U.S. alone, the number of car manufacturers surged from around 30 in 1899 to roughly 500 by 1910. This early era was marked by relentless innovation—introducing V-8 engines, electric starters, and convertible tops for weather protection.
Yet by the 1920s, despite ongoing technological advances, most automakers had shuttered or failed to scale. Only a few giants—Chrysler, Ford, and General Motors—remained. Their success stemmed from a combination of standout products, efficient operations, and cost discipline. Ford’s Model T, for instance, was not only easy to drive thanks to its innovative transmission but also accessible to the middle class due to groundbreaking mass production techniques. By 1927, over 15 million Model Ts had been sold.
Today’s mobility landscape is experiencing a similarly transformative phase. Start-ups and legacy automakers are heavily investing in digitization and the four ACES trends: autonomous driving, connectivity, electrification, and shared mobility. Since 2010, thousands of new mobility companies have emerged. Now, as with the early automotive pioneers, the industry is undergoing a shakeout—with many start-ups folding despite large investments. In fact, over 90% of start-ups fail to scale successfully.
While innovation inevitably brings risk—ranging from shifting consumer preferences and regulatory changes to rapid technological disruption—many failures stem from more avoidable issues, such as insufficient funding before reaching scale.
So, what can businesses do to increase their odds of survival and growth? While no one-size-fits-all approach exists, focusing on executional excellence—everything between ideation and scaling—offers universal benefits. Based on recent market trends, six strategies stand out as essential for emerging mobility companies aiming to grow.
1. Start with a Focused Use Case—But Stay Flexible
Many start-ups succeed by zeroing in on a specific use case. Waymo, for instance, began with broad goals around self-driving vehicles but later honed its efforts on robo-taxis. This strategic focus helped it gain traction, culminating in over four million rides completed by 2024 and 150,000 weekly trips across major U.S. cities.
As revenues grow, Waymo can now reinvest in adjacent areas like logistics and trucking. However, such focus must be balanced with adaptability; companies must be ready to pivot based on market feedback, competition, or internal challenges.
2. Develop a Truly Differentiated Product or Technology
Electric vehicles (EVs) have existed since the 1800s, but Tesla redefined the market. The original Roadster’s 200-mile range set a new standard, even if its price made it exclusive. Subsequent models like the Tesla S3 were more affordable and became bestsellers, thanks in part to Tesla’s reputation for innovation.
New entrants are now following suit. Aptera Motors, for example, developed a solar-powered EV that can drive up to 40 miles daily without charging. Honda is working on “eyes-off” autonomous features set for release in 2026. These innovations aim to stand out in a competitive, tech-driven space.
3. Be the First to Market—But Prepare for the Risks
Being first often yields strong brand recognition and market share. Tesla’s early dominance in EVs allowed it to shape market expectations and operational models, such as direct-to-consumer sales and over-the-air software updates.
Tesla also scaled rapidly, building a global network of factories and securing its supply chain. However, being first also means shouldering high upfront costs and facing a slower path to consumer adoption. Without sufficient funding, early movers risk collapsing before markets mature.
4. Be a Strategic Follower
An alternative to the first-mover approach is being a deliberate second-mover. These companies let others test the market, resolve early issues, and define consumer expectations before launching refined, cost-efficient products.
An AV company entering in 2024 could leverage the latest tech while avoiding past missteps. However, timing is critical. Entering too late could mean insurmountable competition, while over-engineering could delay entry or inflate costs beyond viability. Smart followers need to weigh trade-offs early and act decisively.
5. Grow Through Partnerships and M&A
Start-ups often benefit from strategic collaborations, which can take many forms: equity investments, co-development of technologies, or joint commercial ventures. For example, Mobileye’s partnership with Intel helped it scale, attract more OEM clients, and increase valuation. Volkswagen later expanded its collaboration with Mobileye to develop autonomous systems for luxury and commercial vehicles.
Acquisitions can also accelerate growth. Miles Mobility, a car-sharing start-up, expanded significantly after acquiring Volkswagen’s WeShare business. The deal doubled its fleet size and customer base overnight, making it Europe’s largest car-sharing network. At the same time, Volkswagen gained a committed buyer for 10,000 EVs, benefiting both parties.
6. Invest Boldly—But Thoughtfully
Large investments can unlock scale, but only if strategically deployed. Overextending resources across too many initiatives often leads to underperformance.
Lime, the global leader in shared e-bikes and scooters, exemplifies strategic scaling. Before its $55 million bike expansion, Lime ensured regulatory compliance, improved vehicle design, and integrated battery-swapping tech to streamline maintenance.
Torc Robotics followed a similar path. Originally active across vehicle types, it narrowed its focus to autonomous freight trucks after Daimler acquired a majority stake. Torc now prioritizes AI, sensor development, and braking technology specific to trucking, increasing its chances of delivering high-impact results in one focused area.
Conclusion: Innovation Without Execution is Risky
The early 2000s brought comfort innovations—GPS, Bluetooth, backup cameras—but today’s mobility revolution, driven by ACES and digital transformation, offers a deeper redefinition of how people and goods move.
Although innovation always involves risk, failure shouldn’t be the norm. By learning from past missteps and applying disciplined growth strategies—from focused product development and differentiation to strategic partnerships and capital deployment—mobility companies can position themselves not just to survive but to lead the next wave of industry transformation.
The views and opinions expressed in this article are solely those of the authors and do not necessarily reflect those of Bespoke Business Development. They are intended to encourage discussion and reflection, rather than serve as legal, financial, accounting, tax, or professional advice.
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