NGP Capital is an experienced investor with over $1.2 billion in assets under management. It has invested in 80 companies through its latest fund, including 7 that have reached $1 billion in value. NGP focuses on smart cities and smart mobility investments that can build a better transportation system. Some examples mentioned include ridesharing services, car sharing, micro-mobility options like bikes and scooters, and electric autonomous vehicles which can reduce congestion and pollution in cities. The document discusses how these innovative transportation solutions can improve urban mobility and access while supporting more sustainable development patterns.
2. Proven Success
$1B+
$1.2B AUM
$350M
Experienced Investors
150+ Years
Global Perspective
US, Europe, Asia
one fund
global reach
Strong Portfolio
In latest fund
Founded 2005
7 partners – 150+
years experience
80 companies including
7 $1 billion
companies
NGP Capital Overview: Investing in the Connected World
4. Cars: Buying a Piece of the American Dream
December 12, 20184
Car ownership doubles to 84%
per capita from 1960 to 2007
5. Urban Car Ownership: the Dream Gone Awry
Cars are expensive to own
Cars idle 96% of day
High infrastructure costs5
6. Smart Cities = Smart Mobility
Transport Drives City Design
8
London of Charles Dickens
French Country
Agrarian Communities
Detroit todayBeijing in 1970s
7. Commutes 30-60 minutes longer in Major US Cities
Cars spread cities: longer commutes, more congestion
(minutes)
10. 10
UC Davis: How ride-hailing users would travel if Uber or Lyft were unavailable.
Over 250M ride hailing users globally
Lowers public transport use by 15%
Seattle traffic increased by 35%
San Francisco traffic increased 15-20%
Costlier: $2.5 v. $1.2 per mile for owned cars
Ride Hailing is Costly & Increases Congestion
11. 11
Car Sharing:
Replaces up to 13 private cars
Reduces car ownership by 50% among users
Variety: choose car that suits your purpose
Flexibility: choose when & where needed
12. Micro-Mobility Improves Access to & Use of Public Transport
12
Over 1M Lime rides in Seattle
75%+ to & from public transportation
Expanded range of public transport
Seattle improving bike access on roads
Adding one new city per day
14. October 2018: EMT Madrid & Moovit partnership – 25% of residents use Moovit to plan commute
14
City of Tomorrow Challenge winner
named by Ford & City of Pittsburgh
2600 cities
86 countries
300M users
44 languages
4B+ daily passenger reports
15. Electric Autonomous Buses lowers congestion, pollution
15
Autonomous bus service in Columbus, Ohio to
offer 3x+ service per $ spent (December launch)
Detroit: ridership up 50%+ and +70 NPS
Impact Cities: delighted to be part of Impact Cities. Cities are laboratories for innovation in America. All politics are local and cities have more potential to positively impact local residents than any other form of government.
I live in Washington, work in Silicon Valley. For 30 years, I have invested in technology startups by day and talk public policy at night.
Prior to founding NGP, spent 12 years in emerging markets & Washington with the World Bank, IFC focused on public private partnerships for economic development
Billion dollar companies: UCweb, GanJi, Xiaomi, Heptagon, Rocket Fuel, Quikr, Deliveroo
At NGP we have come to Smart Cities through a focus on Smart Mobility. 17 investments globally.
Through these investments, I have had the opportunity to talk with transportation departments in over 25 major metro areas in America. Excited by the innovation seeing at the local level.
Today I would like to talk with you about innovation we are seeing in Smart Mobility and how it can improve the daily lives of people across America
1970s jingle: four quintessential American things - Baseball, hotdogs, apple pie and Chevrolet
Owning a car was buying a piece of the American dream – symbolized independence, affluence, adventure
All Americans aspired to own a car: Car ownership doubled from 1960 to 2007
But in cities across American, that dream has gone awry
Cars are expensive to own: costing over $12,000 annually in many major US cities
They are not used much: Cars sit idle 96% in parking lots of the day
Commuting is the low point of the day: people spend 54 minutes per day in cars and, in US cities, 20% of time spent in traffic jams
Cars now dictate how we live: Transportation drives city design. In America we have built our cities around the automobile, while in Europe they are build around public transportation.
Major European metro areas are twice as dense as US cities. Parking accounts for 25% of the coverage areas of US cities
Parking often doubles the cost of new buildings
And what return are we getting on that additional investment? Longer commute times.
Counter intuitively: Cities reliant on cars have long average commute times
The average daily commute in SF & LA is 30-60 minutes longer than in Berlin and Paris
Car commutes are also more costly. The average urban car cost is $1.20 per mile
In cities reliant on autos, families spend on average nearly 20% of their income on transportation
Fortunately, help is on the way
Transportation will change more in the next decade than it has in the past 50 years
Key drivers of innovation: (1) shared transportation; (2) multi-modal public transport; (3) electric vehicles; (3) ultimately, autonomous driving
To fully realized the value of these innovations, Smart Cities are taking center stage through creative, forward looking public private partnerships
Most prominent today is ride hailing: over 250M people use ride hailing globally
But recent studies show that ride hailing increases congestion, reduces public transport use and is more expensive
Instead, we need transportation alternatives that (1) reduce car reliance; (2) increase vehicle utilization – lower parking; (3) increase shared transport
In 20 years, no one should own a car for travel within cities. (car ownership dipped by 5%+ in cities in past decade – U Michigan 2006-12)
Car sharing still fledgling – only about 5M people globally using shared cars
but high potential: car sharing Replaces up to 13 cars, reduces car ownership by 50%, variety & flexibility
Car sharing examples: Zipcar, Maven, DriveNow, Getaround, Turo – working closely with cities across America to increase accessibility of shared cars (NGP has invested in car sharing leaders in Europe and India)
But car sharing is not enough: bigger gains can be achieved through use of public transport
The cheapest and quickest way to fix public transport is to improve 1st and last mile commute options
50% of transport time for public transport is in the 1st and last mile of commutes
Studies have shown that making bikes and scooters available at public railways increases the use of public transport by 25% (Minneapolis)
Last year, Seattle partners w/ Lime to make dockless bikes widely available and response tremendous: over 1M rides; 75% use to & from public transportation
Lime expanding fast: one new city each day
Many successful public private partnerships for shared bikes in just the past 10 years
Shared bikes are popular in NYC, DC, Portland, Chicago and SF.
Information essential for efficient multi-modal transport
Moovit offers a public transit app used in > 2600 cities used by 300M commuters
Moovit in Madrid: data partnership for real time transit info & urban transit planning
25% of residents (over 1M people) use Moovit to plan commutes in Madrid. And the response has been tremendous.
Since launch, user satisfaction with EMT Madrid has increased by 35% and public transit ridership has increased 5% in just 3 months
The potential for autonomous vehicles has received much attention … pleased to announce they will soon be coming soon to a city near you
Shared transport with larger vehicles promises faster, lower cost commutes with lower congestion
May Mobility: tested in Detroit – ridership on bus routes is up 50% with a very high user satisfaction rating (70+ NPS Score)
This week May Mobility will be rolling out its autonomous busts in Columbus, Ohio (3x+ service) and will roll out in two new cities in January.
The garage where Hewlett Packard was founded is a Silicon Valley icon for technology innovation
But the HP Garage of Future will be empty = no need for a car
Convert garages to AirBnB for rentals & use income to pay for optimal mix of public & private transport
A new American dream: where no one owns a car; where transport it cheap & healthy; where traffic jams are an anachronism; where commute times are 50% shorter; and where residents have freedom of choice of transportation alternatives
Can we do this? Yes we can!
