As Steve Case once mentioned: car-sharing is poised for explosive growth, as it enables consumers to save on the expense and hassle of car ownership while reducing traffic and ownership. With the world’s pandemic situation, car-sharing has been a desired topic in discussion. According to the latest statistics it has been declared that the North American car-sharing market held a valuation of $626 million in 2017 and is likely to witness further growth, rising at a Compound Annual Growth Rate (CAGR) of 35.1% through the forecast period. By the end of this story, you will identify the best car-sharing options that are available in the market today and will further elaborate on the cons and pros of the different kinds of car-sharing services. Above being said, it is important to understand that the most available and “most talked-about topics in car-sharing have been Peer-to-Peer and Fleet-Based car-sharing options….
What is Peer-to-peer and Fleet-Based car-sharing?
Car-sharing on a peer-to-peer (P2P) basis, in which a vehicle owner lends out their vehicle to others on a short-term basis, is becoming more popular. Think of it as Airbnb for automobiles. This tendency, according to Accenture, is here to stay and will have a major impact on the sector. If C-suite executives are to be a part of the new business environment, they must embrace solutions.
P2P car-sharing is primed for spectacular development, gaining appeal in both developed and developing countries, thanks in large part to the rise of social networks and smartphone technology.
Globally, the number of peer-to-peer car-sharing vehicles has increased from around 200,000 in 2015 to over 440,000 this year, with that number predicted to more than quadruple by 2025, to around 990,000 vehicles.
According to Accenture’s latest research “Unlock the value of mobility services: Turning business models into profitability,” the P2P industry in China, the United States, and Germany alone is predicted to expand to US$21 billion by 2030.
By making your fleet available to your employees, you can make it more profitable. This cuts down on the expenditures of traveling and operating your automobiles. Thanks to easy booking via an online portal and access to the vehicle via a badge, smartphone, or connected key cabinet, this solution allows your staff to be more flexible with their time.
- Reduce your vehicle ownership costs by using a more efficient option than mileage limits.
- With real-time tracking of your cars’ usage, you can stay connected to your fleet. Your staff is self-sufficient thanks to online booking and access to vehicles 24 hours a day, seven days a week (via badge or smartphone).
- Reduce CO2 emissions and optimize the use of your service vehicles to contribute to your company’s CSR plan.
It’s a fact: car-sharing services have exploded in popularity in recent years, combining the sharing economy with personal vehicle renting. After all, if you can temporarily rent out your home when you’re not there, why can’t you do the same with your automobile when you’re not using it, argue proponents?
Early indications imply that P2P vehicle-sharing services are attracting both car owners and car renters. According to detailed research published last year by the Transportation Sustainability Research Center at the University of California, Berkeley, over 2.9 million people in North America use P2P car sharing, with a total fleet of over 131,000 shared automobiles.
However, to make use of the benefits that car-sharing platforms provide, both “hosts” – those who hire out their cars – and “guests” – those who rent out their cars – must ensure that they are aware of the risks involved and how coverage is provided.
Players with various car-sharing models and forms of operation compete in the carsharing market. Startups and large firms sponsored by automakers provide services in both domestic and international markets.
Despite a large number of participants in station-based programs, free-floating businesses appear to be more viable and sustainable in light of current transportation trends. On the other hand, the peer-to-peer approach best represents the concept of carsharing and does not require a specific fleet.
It’s also important to mention that vehicle sharing couldn’t have gotten this far without integrating the latest technologies. Features offered by car-sharing apps make the whole car rental process easier and faster.
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