Connected Transportation At a Glance

The following infographic summarizes the Connected Transportation market and all of its key metrics at a glance. You could see that it has 17 categories, 758 companies, and an average funding of $74 Million per company. At Venture Scanner, we are currently tracking over 758 Connected Transportation companies in 17 categories across 55 countries, with a total of $26.5 Billion in funding. To see the full list of 758 Connected Transportation companies, contact us using the form on

Connected Transportation At a Glance
Connected Transportation At a Glance

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The State of User Based Insurance

Last year I wrote about how the first connected car killer app was already here in the form of User-Based Insurance (UBI). As a quick reminder, UBI is when an insurance company is able to measure exactly how you drive (via telematics) and provide you an insurance policy tailored to your specific habits. Drive aggressively and pay more. Drive safely and pay less.

Since it’s been a little while, it seems like a good time to share the latest thinking in the near, medium, and long term trends of UBI.

Near Term: Consumer Comfort

In an era of major data leaks and hacks (Sony, Target, etc.), there was a legitimate concern that consumers might not be all that comfortable sharing their personal data with yet another set of corporate giants.

However, as seen in the figure below, this fear seems to be misplaced. Consumer privacy concerns around UBI have dropped to 35% from about 42%, and 80% are cool with using UBI smartphone apps.


Source: Towers Watson 2014 UBI Consumer Survey (link)

This is clearly a good sign for UBI providers. Telling Facebook your preferences so they can serve you up better ads is one thing – it’s not like you have to buy anything Facebook shows you. But a reasonable person could have argued that telling your insurance company how you drive was another thing entirely – this will directly impact your premiums! But, perhaps this is a function of Illusory Superiority, where people believe they’re better than average and therefore feel likely to experience a premium reduction.

Medium Term: Smartphones and Frictionless Business Models

An initial problem in UBI revolved around how the insurance companies were actually going to collect the telematics data. The first series of solutions, going back a few decades, involved highly bespoke “black boxes” with a complexity and price point best suited for large automotive fleet managers. The next solution involved using a device that connects to the On-Board Diagnostics port (known as OBD-II) available in all cars after 1996, which is a much simpler/cheaper device that consumers can easily install themselves.

Now, more and more insurance companies are starting to realize that consumers already carry around a device capable of taking UBI measurements – the smartphone. A quick read of Android’s developer guide around sensors shows that smartphone have about a dozen measurement metrics built in today, many of which can be used for UBI.

The use of already-existing-practically-ubiquitous smartphones as an entry point into UBI is also enabling new business models, such Try Before You Buy (as the image below from Frost & Sullivan shows).


Source: Frost & Sullivan (link)

Previously, consumers had to get a piece of hardware and fiddle around with it until it worked. Now, with the smartphone, it’s just another app download. “Interested in seeing how UBI would impact your premiums? Want learn how to conserve fuel while driving? Just download our app for a free trial and see what you could save!”

Long Term: The Car as the Embedded Device

While smartphones may be king for a while, most of the smart money is on the car itself becoming the hub for UBI. Large tech players such as Google and Apple, which benefit greatly from the medium term focus on smartphones, are creating their own automotive-focused Operating Systems. That’s how powerful the automotive as a connected platform can be. The image below shows this future dominance.


Source: Ptolemus Consulting Group (link)

At a basic level, this makes a lot of sense. UBI will be better served via more sensors throughout the car capable of higher accuracy measurements, and the smartphone can only go so far. Do policy issuers want to make sure drivers properly inflate their tires? You’ll have to work with the car directly to find that out.

Personally, I feel that UBI will always be multi-model. The expansion of embedded solutions in the car will optimize both automotive interfaces and UBI use-cases. However, it seems to be that an embedded solution coupled with a smartphone app to bridge the gap between driving and non-driving times would be even more powerful.

With consumers losing their privacy concerns, smartphones offering a frictionless entry point, and the future development of highly robust embedded sensors on the horizon, it looks like everything is coming up UBI.

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Understanding the Connected Transportation Ecosystem

At this time, we are tracking 702 Connected Transportation companies across 17 categories, with a combined funding amount of $24.7B. These are companies that are looking to revolutionize the way people move around and interact with their transportation options. The sector includes things like connected car technologies, smart infrastructure grids, and collaborative consumption enablers.

See the breakdown in sector funding and the most updated market information at

Connected Transportation Sector Map
Connected Transportation Sector Map

Ride Hailing and Scheduling: Enable consumers to schedule a ride either in real time or for the future. Usually integrated with user profile and mobile payment options and sometimes including ranking systems.

Smart City and Mobility: Next generation solutions for increasing sustainability in how transportation is conducted within cities. Examples include all electric vehicles (from full size automobiles to smaller scooters), and distributed energy systems which make it easier for these vehicles to recharge and stay mobile.

Automotive Telematics: Telematics provide car owners with better access to specific information about their car. Examples include sensor reading histories (telemetry), diagnostics, and enhanced safety features (such as road-side assistance). Includes both integrated and after-market solutions.

Auto Fleet Management: Solutions for professional owners of large fleets of vehicles, enabling them to better optimize their total cost of ownership (tracking, servicing, fueling, etc.).

Individualized Insurance: Companies that optimize insurance costs, such as comparison websites and technologies that allow for personalized quotes (such as Pay As You Drive automotive telematics).

Mapping, Location, and Route Optimization: Understanding where a consumer is and providing recommendations based upon that. Examples include providing local maps, localized advertising, and directions.

Auto Clean Tech: Next-generation solutions seeking to increase fuel efficiency, lower emissions, and/or take advantage or renewable fuels.

Car Sharing: The collaborative consumption option for cars, enabling consumers to share the cost of auto ownership. Business models range from centrally administered micro-rentals through peer-to-peer shared ride arrangements.

Vehicle to Vehicle (V2V) Communications: Technologies which allow for direct vehicle-to-vehicle communication. These technologies can help with collision avoidance, route optimization, and maintaining the flow of traffic.

Intelligent Transit Systems: Intelligent Transit Systems (ITS) share information between cars and infrastructure, enabling collision avoidance, metering, and traffic management. Sometimes referred to Vehicle-to-Vehicle (V2V) or Vehicle-to-Infrastructure (V2I) systems.

Enhanced Auto Ownership: New methodologies to buy, rent, or insure cars. Also includes social networks dedicated to cars and car culture.

Auto Wireless Networking: These companies offer solutions that help cars communicate wirelessly with the cloud, so that interested users can monitor and/or analyze information coming from specific cars.

Automotive Infotainment: Communication and entertainment services that are integrated/streamlined into an automotive experience. Examples include music libraries, voice activation, telephony, and voice-to-text. Includes both integrated and after-market solutions.

Public Transit Enhancement: Public Transit Enhancements aim to encourage the use of public transit options. Examples include real-time tracking of buses, loyalty programs, and information.

Smart Parking Technology: Smart Parking solutions make it easier to manage parking space inventories, usually enabling consumers to find open space in-real-time or to pay for parking via mobile payment options.

Auto Heads Up Display (HUD): Technologies that bring “cockpit” style display technologies into the automotive realm.

Autonomous & Assisted Car Sensors: Companies that provide various solutions that assist a human in driving a car or work to eliminate the need for a human behind the wheel.

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to