How Investing in Car Sharing Industry Trends Transform Your Logistics Business?

Highlights

• Introduction
• Prominent trends in the car-sharing industry
• Key product launches

Car sharing is a service that provides access to a fleet of vehicles located nearby. Through an internet application, customers trace available cars for pickup at various locations or specify a drop-off location after completing their journey. 

Unlike traditional car rental, where vehicles are rented for a fixed duration, car sharing allows users to choose from a variety of vehicles on the basis of their needs. Users have the flexibility to access vehicles for shorter periods, such as by the hour or minute. The global car-sharing industry is anticipated to manifest the fastest CAGR of 20.2% by 2032. The growth is attributed to collaboration & partnership with public transportation suppliers and cost savings from car ownership. 

Prominent trends in the car-sharing industry

Peer-to-peer ride sharing has gained popularity

Peer-to-peer ride-sharing or P2P ride-sharing is a growing phenomenon in urban mobility. In P2P ride sharing, the driver of the vehicle is also its owner where the driver retains the full ride fare without any deductions to a corporation. This setup leads to low operating costs, resulting in lower fees for consumers booking rides. Peer car sharing typically operates through a platform where individuals seek rides to connect and transact.

Peer-to-peer car-sharing is incorporated into larger mobility-as-a-service (MaaS) platforms. MaaS aims to offer users a unified and integrated transportation experience by integrating various modes of transport, such as ride sharing, public transit, car-sharing, and bike-sharing. Peer-to-peer car-sharing enhances the multimodal nature of MaaS, enabling users to integrate car-sharing into their overall travel plans.

Car sharing industry has shifted toward EV and hybrid vehicles  

With the rise of environmental concerns, there is an upsurge in need for sustainable transportation solutions. Car-sharing platforms have adopted this trend by integrating electric and hybrid vehicles into their fleets. The availability of electric car-sharing options supports sustainability objectives and exposes users to the experience of driving electric vehicles by influencing their future purchasing decisions.

The financial advantages linked to operating electric vehicles, such as reduced charging costs and lower maintenance needs, enhance the overall affordability and competitiveness of car-sharing services. Adding sustainable vehicles such as hybrid and electric models to car-sharing fleets fulfils the rise in demand for eco-friendly transportation options.

How do top players maintain their supremacy in the competitive industry?

The global car-sharing industry is dynamic, and top players have adopted novel strategies to sustain the competitive industry. These strategies involve partnerships, collaborations, acquisitions, mergers, and new product launches. For instance, the car-sharing industry in emerging countries, Zoomcar and an AutoTech platform for pre-owned cars, CARS24, declared a strategic partnership in February 2024, to support local hosts in their car-sharing ventures. This collaboration is expected to provide Zoomcar Hosts with customized offerings from CARS24 on used car purchases and flexible financing options.

On the other hand, in May 2023, Getaround, the world's pioneering connected car-sharing company, launched Getaround TrustScore v2.0, an advanced proprietary AI model aimed at enhancing the economics and safety of its car-sharing platform. Getaround TrustScore v2.0 integrates machine learning with over a decade of trip data from its platform to deliver enhanced security and pricing deposits for every car-sharing journey.

To sum up, the global car sharing industry has gained popularity due to collaboration & partnership with public transportation suppliers and cost savings from car ownership. Car sharing services offer economical mobility solution for individuals who require a vehicle only on specific occasions, whether for weekend outings, business meetings, or errands. This approach provides flexibility and convenience without the obligation of car ownership. Moreover, last-mile solutions and electric & sustainable vehicles are expected to open new avenues for the industry in the upcoming era. 

For detailed dynamics and estimations of the global car-sharing industry, contact our experts today!

 

 

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