Car sharing is one of the most successful examples of the sharing economy, in which people prefer to rent or barter rather than buy items.
This model reduces expenses while increasing resource efficiency. Car-sharing services grew in popularity in 59 countries in 2019, with a total market volume of $2.5 billion. Demonstrating strong consumer demand around the world. Car-sharing, like the rest of the sharing economy, is based on internet platforms that enable services and link stakeholders.
As a result, in this post, we’ll look at the current market as well as the top car-sharing apps accessible, as well as their benefits.
Overview of the Car-Sharing Industry:
According to Movmi, 236 car-sharing companies operate in 3128 cities around the world, accounting for 30% of the worldwide population.
This market is continuing to see high user growth. According to Statista, the number of people who use car-sharing services has increased from 35.2 million in 2017 to 43.6 million in 2020.
Asia continues to lead the world in the number of shared vehicles, accounting for about 40% of the worldwide fleet.
Europe comes in second and North America comes in third, respectively. In turn, the United States has the most car-sharing providers (33), and the largest market in terms of volume ($1.5 billion). Thus, followed by China and the United Kingdom.
Carsharing is important for long-term urban mobility since it provides a reasonable option for urban residents who do not wish to purchase a car.
– Reppert, Olivier, The CEO of SHARE NOW in Berlin, Germany
COVID-19’s Impact on the Car-Sharing Market:
The global pandemic has had a negative impact on practically every industry, including car-sharing. According to Gartner Inc., around 88 percent of organizations in the globe allow their workers to work from home.
Aside from that, the quarantine has severely restricted people’s movement around the city in order to avoid long lines and crowds.
As a result, the need for an automobile has reduced. Because income did not cover the expense of vehicle maintenance, car-sharing companies, and automobile clubs had to shut operations. As a result, according to Statista, the market fell by 21.9 percent in 2019 compared to the previous year.
This setback is not long-term, and a 25.9% gain in overall income is expected by 2022. Since individual transportation is still more socially distance friendly than public transportation.
Car-sharing companies must equip cars with disinfectants and temperature-measuring systems in order to recover from the pandemic. It may raise service costs, but it prevents future viral infections.
The advantages of electric vehicles have once again been proven by current events around the world. The T.H. Chan School of Public Health at Harvard University discovered that communities with high levels of air pollution are the most sensitive to viral infection.
Electric transportation, on the other hand, produces no hazardous pollutants. As a result, its widespread use reduces pollutants, as well as the respiratory illness, risks that make the coronavirus so deadly.
What Can We Expect From the Car-Sharing Industry?
According to GlobeNewswire, the car-sharing business would grow at a CAGR of more than 16 percent between 2020 and 2024.
A lot of reasons have added to this continuous rise. According to the United Nations, around 55 percent of the world’s population lives in cities now, with that number expected to rise to 68 percent by 2050.
Car sharing, on the other hand, has grown in popularity in cities due to a lack of affordable parking options. As a result, the demand for car-sharing services grows in tandem with urbanization.
Over the last few years, the issues of carbon dioxide emissions and air pollution have gotten a lot of attention. Car sharing reduces the number of vehicles on the road by replacing 10 owned automobiles with one rented vehicle.
In the United States, Australia, Canada, and the United Kingdom, rising maintenance, refueling, and insurance costs have turned car ownership into a waste of money, highlighting the affordability of the car-sharing industry.
Car sharing has gained from technological advancements such as mobile vehicle integration, keyless unlocking, and contactless owner-user connection. As a result, has pushed traditional car rental centers out of business and broadened the target demographic for car-sharing companies.
Millennials and centennials have become more interested in the sharing economy. They now account for the lion’s share of worldwide consumers. As a result, vehicle sharing has adopted its best practices, such as employing mobile platforms for contact, transaction simplicity, and self-service, resulting in significant cost savings. As a result, car-sharing companies have complete access to Generations X and Y, ensuring their market success in the coming decades.
Business Models for Car Sharing:
Car-sharing enterprises can be classified into four categories: B2B, B2C, P2P, and nonprofit. All of them are aimed at reducing the number of cars on the road. Lowering CO2 emissions, and saving money for end-users. However, in order to make the best decision, you must first understand their features and differences.
- B2C (Business-to-Consumer) Carsharing Model
Users contact a car-sharing firm, choose a vehicle, and pay for the number of miles or time the car was in use in the B2C model, which is similar to typical car rental facilities.
Unlike rental agencies and centers, however, all communication and operations are handled through a mobile app. Station-based, free-floating, and A–B car-sharing are three kinds of the B2C paradigm.
The station-based or roundtrip type of travel means that the user begins and ends their journey at the same location, such as a garage or a parking lot.
- Model of peer-to-peer car-sharing
Peer-to-peer car sharing has a number of benefits for both the vehicle owner and the vehicle user. The first can earn money without having to work, prevent automobile inactivity throughout the day, and save money on petrol.
In turn, the other borrows an automobile without any minimum time constraints or third-party intermediaries, lowering the rental price. Users can utilize top car-sharing applications based on this business model to locate the nearest cars and contact the owner for a reservation right away.
The airport car-sharing program is a tiny kind of peer-to-peer (P2P) that is most popular in Europe.
It allows people to rent cars in other nations while on vacation. They only need to leave the automobile at the airport for this purpose.
- B2B Car-sharing Model
In this model all car-sharing activities are conducted within the company, only workers and customers identified by the client are allowed to utilize the vehicles. Car rentals and B2C operators can help companies provide automobiles for the working day.
Employees may be required to pay a fee for vehicle use, but this is still less expensive than renting a car or taking a cab every day.
- Model of a Nonprofit
Car-sharing services are provided by non-profit organizations for environmental or social reasons. Local communities may exist where members can offer their automobiles as part of a neighborhood-based fleet.
Some demand a minimal fee for car use, while others just accept voluntary donations for insurance, gas, parking, and vehicle maintenance.