The Impacts Of COVID-19 On The Car Sharing Service Market

Car Rental
Car Rental
Car Sharing Companies
Car Sharing Companies

Several nations and regions have been on lockdown owing to the ongoing coronavirus epidemic. So, most of us are told to keep a social distance, follow hygiene, and avoid touching our facial areas. Therefore, not many individuals share car ride these days. Naturally, the situation has affected the business of many car sharing companies.

Some of these companies are pitching car sharing as a mode of travel with less cost as compared to car ownership. They are expecting this message to gain business out of those who use public transport. The companies say that there has been an increase in shorter journeys, and that healthcare personnel and ‘essential’ employees are using their services more than before. These people rely on the services to reach their workplaces.

The Present Negative Impacts

Unfortunately, the volume of journeys in America has come down considerably after states started to close in March 2020. The reduction follows changes in the recent transport and traffic patterns that occurred due to stay-at-home ordinances and lockdowns. As per the nonprofit organization American Public Transportation Association (APTA), the nation’s most extensively utilized transportation systems carry 40% fewer passengers than normal.

The Future Challenges

Car ownership poses a potential challenge to companies. Anxiety regarding the increases in coronavirus disease in the coming months could be the factor that makes people purchase and own cars, instead of sharing others’ rides. Besides, an economic recession could result in fewer fresh cars. New cars are usually more popular among sharing platform users. Industry insiders expect to see a reduction in the sale of cars in 2020 and 2021. In the event this situation emerges, the number of new vehicles available for sharing rides would be less than before.

Anyhow, the companies look forward to seeing more individuals making their cars available for the purpose in the coming months. If the national economy becomes troubled, people who own cars could turn to the sharing services as a source of additional revenue to deal with their expenses. Could the shared mobility sector turn this temporary change occurred due to the epidemic into a sales source that is capable of being sustained? The analyst at Pitchbook, Asad Hussain sees people turning to car ownership as a potential threat to these businesses that could last longer.

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