Formula E Versus Formula 1: Microcosm Of The Tussle For Mobility's Future

In the world of motorsport, Formula 1 is described as the pinnacle of racing with its high octane powered cars accelerating from zero to 124 mph (200 km/h) in under five seconds and top speeds of 230 mph. Only problem is, the pinnacle of motorsport has of late acquired the tendency of being a bit too mundane.

The championship’s latest installment is no exception either. Of the first 11 races in 2019 so far, Mercedes have won nine with seven wins for defending champion Lewis Hamilton, and two for his team colleague Valtteri Bottas. In fact, the first eight races were all bagged by Mercedes. The problem is not of Hamilton or Bottas’ making or of their team – the Formula 1 racing field hasn’t been level for decades.

It remains a two-tier championship of the best and the rest, in which only three teams can have realistic hopes of winning i.e. Mercedes, Ferrari and Red Bull Racing, and among them, the former is doing a better job these days than its two realistic rivals. The rest on the grid nearly always appear to be there to provide a side-show of numbers and occasional entertainment in bad weather.

All of it bottles down to its creator Bernie Ecclestone, who let teams have a say in running the sport and created an inequitable split in the prize fund that disproportionately rewards the top teams. The creator has since gone, yet his legacy lives on minus tobacco advertisements and scantily clad pit girls, but with cars that are more efficient and less noisy in an age of low carbon objectives. And yes, a budget cap has been agreed for 2021.

Compare and contrast that with Formula 1’s nascent electronic cousin – the Formula E circuit founded by Spanish businessman Alejandro Agag as the only electric-powered auto racing competition in the world. With a top speed of 174 mph, and zero to 62 mph in three seconds, the speed of the cars doesn’t quite match their Formula 1 counterparts.

But it makes up for that in excitement and sending a message of a different kind – the playing field is a lot more level, caliber of participants is similar (including automakers and several ex-Formula 1 drivers) and it’s sustainable zero emission entertainment. The 2019 championship, which concluded on July 14, had eight different winners in the first eight races, with Jean-Eric Vergne of Team DS Techeetah ultimately crowned as the season’s champion right at the final race in New York, U.S.

At the season’s finale your correspondent’s walkabout the circuit and paddock could not have been more different to a comparable outing at a Formula 1 circuit in Monza, Italy in 2017. Instead of free alcohol samples in Monza, visitors in New York were being given virtual reality experiences of driving electric race cars; instead of the pit lane and paddocks being the sole preserve of celebrities, children were being explained the principle of electric mobility in the pit lane prior to the race, instead of the latest gas guzzling turbo charged McLaren sportscar on display, electric Harley Davidson’s were at the stands.

The fan-park and stands felt different, younger and more engaged, especially as you could hear each other with the Formula E cars being way quieter if not noiseless compared to other motoring events. Joe, visiting from Pittsburgh, said: “I love NASCAR and watch Formula 1, but my other car is electric and I traveled to Formula E to see how the limits of electric cars can be stretched.”

Amy, who had traveled from Boston with her two children aged seven and nine, said: “It’s an experience and something different for the kids and me. We do not have an electric car but availability of charging points is improving in our town, so who knows, we might get one soon. The kids would probably want the ones on the track but I might like something more practical!”

And that’s the ticket – a potential glimpse into an electric mobility future; one that was evident in the make-up of the sponsors’ roster too. Akin to Formula 1, sponsors such as Heineken, Tag Heuer, DHL and Hugo Boss were there too, but rubbing shoulders with the likes of technology and engineering brands such as Modis, Enel, Bosch and headline title partner ABB.

To a brand equity analyst, the exposure objective of an ‘ABB Formula E Championship 2019’ and a ‘Heineken Brazilian Grand Prix’ could not be more divergent. One professional who has seen all sides of the motorsport spectrum told Forbes it is all about articulating a vision for the future.

Allan McNish, Team Principal of the Audi Sport ABT Schaeffler Formula E team, and former Le Mans and Formula 1 driver, said: “It is still motorsport, it’s still what we love but it is actually opening doors to a new experience to entice a different fan base alongside motorsport lovers. Those involved know that in order to grow, Formula E needs to grow a new fan base not from a historical fan base because the championship’s journey only began as recently as five years ago [2014].

“Starting from a clean slate, Formula E gives participants a level playing field with none of the legacy issues that you see with Formula 1 where only a limited number of people can achieve race winning performance levels.”

Asked to sum up where Formula E sits in the wider sphere of motorsport, McNish said: “It’s a product fit for today without any baggage.”

While, Formula 1 with its chequered history of nearly seven decades is trying to evolve, Formula E is an evolution in motorsport, according to a spokesperson for BMW, which tried its hand at the former sport with mixed results, and is quite at peace these days in the latter motorsport.

“BMW is both showcasing technology and learning lessons via its participation in Formula E, and we are in it for the long run,” he added.

It’s German peer Audi feels likewise, and the arrival of Mercedes and Porsche is imminent. And it’s not just the Germans, India’s Mahindra, U.K.’s Jaguar and Japan’s Nissan are already there toughing it out. Teams are also liking the broadcasting format.

Unlike Formula 1 races that last between 90 minutes and two hours (contingent upon race conditions), Formula E has a time window of 45 minutes plus one concluding power lap, and this is unlikely to alter significantly.

“We have got the right time window. In the near future when we have battery capability of 1 hour and a half, I would still like to keep the races down to 1 hour. It’s about people’s attention spans; we’re all looking for something different, some instant gratification and distraction. In that context, longer is not always better,” McNish said.

It appears to be working, with Formula E recording TV audiences of up to 330 million last year and growing, albeit significantly short of 1.6 billion cumulative broadcasting audience for Formula 1 over the same period. However, backers are being patient.

While the pedigree motorsport has sponsors selling everything from beer to blazers, Formula E’s headline sponsorship deal with ABB, signed in January 2018 for seven seasons, is to promote the rising tide of electric mobility, according to Frank Muehlon, Managing Director, EV Charging Infrastructure at ABB.

“Across the automotive value chain, electrification is part of the OEM [‘original equipment manufacturer’] thinking. We are global leaders in DC fast chargers for electric vehicles. From that perspective, Formula E championship is a vital method of engaging with the technologists and the ultimate users and beneficiaries of that engagement from the fan park to those watching on TV.

“From affordably of electric vehicles to battery life, lower charging times to performance, lessons learnt by the automakers on the Formula E track are feeding into their thinking and ours. So if you are pushing the edge of a technological concept – Formula E serves as a vital testing ground.”

Perhaps cognizant of rising numbers of electro-heads, Liberty Media, which owns 100% of the Formula 1 Championship, also holds a near 24% stake in Formula E and appears in no mood to sell it. It would be exceedingly premature to say Formula 1 and petro-heads might be yesterday’s news, but Formula E is looking likely to be tomorrow’s racing headline.