What do a Big Mac and an electric vehicle have in common? Second Steve PeggCEO Helixx, much more than you might think. His startup is trying to bring the economy of scale and the franchising approach of fast-food restaurants to the world of car production, with the aim of democratizing electric mobility in the megacities of the future.
Helixx's vision: revolutionize car manufacturing
Helixx is aiming to completely overturn the paradigm of traditional car production. Their goal? Create a network of “pop-up” factories capable of producing cheap electric vehicles near large cities, with a business model inspired more by McDonald's than Detroit.
At the heart of this vision is Daisy, a prototype electric delivery van. What makes Daisy special isn't so much its boxy design, but the fact that almost every part of it was made on consumer 3D printers. This unconventional approach to car manufacturing is just a taste of what Helixx has in mind.
The McDonald's model applied to car production?
At Helixx they often refer to McDonald's when describing their business model. “The principle is very similar to a McDonald's franchise. You don't need to be a chef to know how to make burgers,” Pegg explains. The comparison is not casual: Helixx wants to create a standardized and easily replicable car production system, just like a fast-food chain.
The key concept of Helixx is the “factory in a box”, a modular manufacturing plant which can be installed and operational in just 180 days. These factories, designed to produce at least 100.000 vehicles per year, will be operated by local partners who will purchase the license from Helixx.
A new revenue model for car production
Helixx doesn't just sell vehicles. Their business model is multilevel and includes 5 revenue channels:
- Sale of licenses to access the platform
- Supply of components for the production
- Monthly fees for vehicle produced
- Royalties per vehicle put into service
- Potential data sale of vehicle use
This diversified approach to revenue represents a significant departure from traditional auto manufacturing models.
Electric vehicles for emerging megacities
Helixx's target market is large, fast-growing cities, such as Jakarta o Bangkok. The idea is to replace traditional tuk-tuks and rickshaws with more efficient and less polluting electric vehicles. The Daisy van, with an estimated price of just $6.000, is designed to be accessible and practical for workers in these metropolises.
The company also aims to innovate battery management. Instead of relying on charging stations, their vehicles will use interchangeable batteries, similar to the model adopted by gogoro for electric scooters. This approach could solve many of the logistical problems associated with charging in densely populated cities.
The subscription model: Netflix for electric vehicles
Another innovative aspect of the Helixx model is the approach to vehicle access. Instead of selling them directly, the company provides a subscription system, which Pegg has compared to Netflix. This model could provide a more stable and predictable revenue stream, which is crucial to the company's financial sustainability. But will it work?
Ultimately, the Helixx model still faces numerous challenges. Car production is already complex, and decentralizing it could create quality control and standardization problems. Additionally, the reliance on local partners for manufacturing introduces variables that may be difficult to manage at scale.
Of course, if it works, the model could have a significant impact on the entire automotive sector. Decentralized and small-scale auto manufacturing could challenge the dominance of large manufacturers, paving the way for greater customization and adaptability to local needs.
A stimulating unknown
Helixx's vision for the future of auto manufacturing is bold and not without its challenges. Bringing the fast-food approach to the world of electric vehicles is an idea that challenges many industry conventions.
Helixx's success or failure will depend on its ability to translate this vision into operational reality, overcoming the logistical, regulatory and market challenges it will face. Regardless of the outcome, Helixx's approach is already sparking new thinking about how auto manufacturing can adapt to the needs of a rapidly changing world.
