What was the IndeGo Car Company?

The origin of IndeGo was a concept developed for the ‘next generation car company’ whilst still at Kearney in 2004. After leaving Kearney, I then led a small team who tried to make this a reality through a private equity backed deal to acquire the smart brand from Daimler. Unfortunately they chose to retain the business at that time, but many of the core ideas in the IndeGo concept have since emerged. An idea that was perhaps ahead of its time, but recognised by top industry executives even then as a better way to do business, though challenging for an existing player with legacy commitments and investments. The selection of original slides below still reads well today…

The fundamental automotive industry business model has changed little, although battery electric vehicles are affecting product architecture and reducing barriers to entry

The fundamental automotive industry business model has changed little, although battery electric vehicles are affecting product architecture and reducing barriers to entry

The focus today is too much on the new car sale, yet most of the revenue and profit is generated later in the life cycle. Closer customer relationships remain a target over 15 years after we highlighted this with IndeGo and suggested how it could be

The focus today is too much on the new car sale, yet most of the revenue and profit is generated later in the life cycle. Closer customer relationships remain a target over 15 years after we highlighted this with IndeGo and suggested how it could be achieved.

Car companies are run by 'car guys' but most customers need a functional product that gives them what they need - we were not targeting enthusiasts, but rational buyers who were prepared to do the sums and understand the value offered.

Car companies are run by 'car guys' but most customers need a functional product that gives them what they need - we were not targeting enthusiasts, but rational buyers who were prepared to do the sums and understand the value offered.

Matching the flow of new and defleeted cars with that of new and returning customers was key - replacing inventory with information, and pre-dating any talk of 'big data' by a decade.

Matching the flow of new and defleeted cars with that of new and returning customers was key - replacing inventory with information, and pre-dating any talk of 'big data' by a decade.

The proposed product focus matched the target customer, and created a foundation that supported the return of cars back into the system to satisfy new customers at different price points. Telematics was an innovation in 2004 and key to the concept,

The proposed product focus matched the target customer, and created a foundation that supported the return of cars back into the system to satisfy new customers at different price points. Telematics was an innovation in 2004 and key to the concept, yet manufacturers today still struggle to monetise their connected cars, partly because the underlying model has not changed.

IndeGo was conceived as a mobility provider rather than a manufacturer or retailer of cars, but the lifecycle model and managed flexibility made this highly profitable, unlike the inefficient mobility by the minute or most subscription schemes offer

IndeGo was conceived as a mobility provider rather than a manufacturer or retailer of cars, but the lifecycle model and managed flexibility made this highly profitable, unlike the inefficient mobility by the minute or most subscription schemes offered in the 2020s.

Although not unique as an objective, we felt that there were many aspects of the IndeGo model that would truly allow us to differentiate the offer on the basis of superior service, rather than product features that were largely meaningless (like a Nu

Although not unique as an objective, we felt that there were many aspects of the IndeGo model that would truly allow us to differentiate the offer on the basis of superior service, rather than product features that were largely meaningless (like a Nurburgring laptime) or price, which is arguably less important than value.

The concept of bundled deals combining the vehicle, financing, aftersales offers and other services is now growing in importance, but was a big step forward in 2004.

The concept of bundled deals combining the vehicle, financing, aftersales offers and other services is now growing in importance, but was a big step forward in 2004.

They key to the superior profitability of the model was that profit would be derived throughout the vehicle lifecycle (assumed as 8 years) with the closed system offering 100% retention of all related revenues. Adjacencies would have been the 'icing

They key to the superior profitability of the model was that profit would be derived throughout the vehicle lifecycle (assumed as 8 years) with the closed system offering 100% retention of all related revenues. Adjacencies would have been the 'icing on the cake' that we did not even evaluate.