The changes and development in technology have influenced how millennials approach consuming products and services. When you look at the bigger picture, there is a massive shift in this regard compared to the previous generations. In general, they don’t like owning vehicles for transportation purposes; rather, they prefer public transportation and ride sharing services to commute. One such option is car sharing for moving around and it is very much popular among working professionals. Shared below are some of the trends in the shared mobility and transportation market, read on to know more.
Analysis Of Car Sharing Market
The market for shared mobility began developing rapidly around the period of 2010 to 2011, and it has been on an upward trajectory since then. It should be kept in mind this is around the same time many of the millennials who are now in their 30’s entered the workforce. According to multiple market studies the global market for shared mobility will reach 11 billion USD by 2024. The US and Europe are the two market leaders in this field, but many Asian countries will also experience rapid growth.
Noticing this trend of vehicle sharing, many car rental companies began to add this as part of their services because of the rising demand. Innovative companies are also emerging in this field and this is an indicator of the growth potential of this market. Some of the biggest players in this field of shared mobility are ride sharing companies which you have already heard about.
This shift in trend towards shared mobility among millennials was first observed by automobile manufacturers and some of the leading manufacturers have their own car sharing platforms. Besides, the aim of some of the manufacturers of electric vehicles (EVs) is to transition their business model to car sharing from ownership of individual cars. The biggest advantage of this model is that it helps with reducing environmental pollution and traffic during peak hours. There is also an option to subscribe to a car model like the Porsche Passport service, for a particular period of time.
Peer To Peer (P2P) Model
This business model connects those who want to rent cars to the car owners, but this is one of the least popular car sharing models. The difficult part of this model is that ensuring the quality of the rented vehicle is very difficult. However, with the rise in shared mobility, there is a good chance that this model will also pick momentum.
With the deeper penetration of smartphones and the better availability of comfortable rides, more and more people are now preferring car sharing.