Big Trends Driving the Car Sharing Market to Success

Jun 4, 2018

Environmental pollution has been an ongoing global issue for quite some time now. Most people and industries around the world have joined hands already to fight pollution and the transportation industry is not far behind. Though the transportation industry accounts for a significant amount of environmental pollution through emissions, the industry itself seeks to change this image with innovations like car sharing. Roundtrip car sharing vehicles offer about 10% more fuel efficiency, reducing the carbon footprint. Furthermore, many companies are switching from fossil fuel cars to electric or hybrid cars. Also, the integration of advanced technologies into the cars to provide enhanced services quality will propel the car sharing market’s growth. Companies are providing smart cards and RFID tags to enhance security features such as locking & unlocking of doors and providing unique identification to the drivers. But that’s not all, let’s look at the top trends in the car sharing market that you need to look forward to:Request Proposal

Rising market consolidation

As the scale of shared mobility grows exponentially, there will be a consequent increase in market consolidation as dominant players eyeing for market share expand into new territories.  As a result, smaller players will soon be exiting the market, leaving the car sharing market in the hands of a few large players. This trend is set to continue in 2018 as dominant players aggressively outgrow smaller incumbents who face poor organic growth prospects

Autonomous vehicles

What is happening today in the transportation industry is as significant as the advent of the car once was. Anticipating a decreasing production volume, several industry players are already positioning themselves to become the platforms of tomorrow.  For instance, Daimler announced its decision to partner with Uber last year. Daimler has agreed to provide Uber with autonomous vehicles. Car sharing platforms must keep abreast of these developments in 2018 while continuing their international expansion.

Merging of carsharing and ridesharing platforms

The arrival of autonomous vehicles will further speed up the growth in this market as it will simplify ride and car sharing practices and open up new opportunities for these platforms. In a driverless world, the distinction between car sharing and ride‐sharing platforms will no longer exist. Autonomous vehicles will be just a few smartphone clicks away, ready to come pick you up and drive you anywhere you want, whenever you want, over short or long distances. 

Public policy to fuel growth in shared mobility 

While the shift away from car ownership towards accessibility is already underway, the widescale adoption of shared mobility requires public policy intervention. In 2017 we’ve seen city leaders from various parts of the world paving the way with ambitious plans to implement policies that encourage a sustainable revolution in the transportation industry. Recently in London, the government unveiled plans to stop residential developments from building parking spaces and new offices from installing commuter or visitor parking. The purpose of this transport strategy is to reduce air pollution and congestion by reducing car dependency. However, if the desire to reinvent urban mobility and bring cleaner air to city dwellers is to be unanimously supported, it must take on board the limitations of public transport infrastructure outside of densely populated cities.

To know more about the opportunities and challenges in the car sharing space

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