Car Sharing Market Statistics and Forecasts Show Excellent Double Digit Growth

May 02, 2018

The advent of numerous startups coupled with an increased utilization of smart technologies has been instrumental in pnropelling the car sharing market share. This business vertical has been thriving on the back of a new trend that has spanned the global transportation scenario – the rise of shared, sustainable, and highly connected mobility solutions. The increased utilization of AI tools coupled with a fierce competition among vehicle manufacturers to develop low-emission transportation solutions have emerged to be the preeminent factors propelling the car sharing market in the immediate future.

Over the past few years, there has been a massive spike in venture funding being provided by prominent automotive giants to a wide-range of startups operating in the car sharing industry. Amongst these automakers, the older transportation firms are increasingly seeking ideas on generating new revenue streams from vehicles after the initial sale. Additionally, the major automakers seem further interested in emerging companies that can assist them in acquiring data from vehicles to develop self-driving cars. Enumerated below are a few instances of dominant automakers who have either invested heavily or have formed partnerships with startups that could tridusryansform the contours of car sharing industry:

  • Building on the collaboration that commenced in 2015, Daimler AG has now formed a joint venture with Via to launch on-demand shuttle services across European nations. The partnership would reportedly focus on licensing Via’s on-demand shuttle operating procedure to municipalities and transit authorities in Europe. For the record, Via is an on-demand shared rides technology developer which provides smart routing algorithms to ensure seamless functioning of the pick and drop facility to its customers. The partnership could apparently prove to be instrumental in altering the way mobility on demand market functions in European nations, cite analysts.
  • In 2016, General Motors (GM) invested about USD 500 million in Lyft, an on-demand transportation and ride hailing service. Regarded as one of the foremost automotive firms in the world, GM would reportedly utilize OnStar, its built-in communication network, as a tool on the ridesharing platform. Concurrently, Lyft would use the funding to establish an autonomous on-demand network that shall be deployed to serve commuters with GM’s self-driving cars. Moreover, both the firms have reportedly envisioned a vehicle ownership business that would be based on a rental model. Needless to mention, the collaboration goes on to underscore endless opportunities being opened up in the global car sharing industry space.
  • With an aim to carve out a niche for itself in multi-modal and shared mobility solutions domain, Mahindra and Mahindra Limited has recently announced its plans to invest approximately INR 176 crore in car rental startup Zoomcar Inc. The India-based automotive behemoth would acquire a 16% stake in the startup and intends to leverage its varied platform that would assist the transformation of the current car sharing market in India. It is quite interesting to note that both the firms had collaborated last year to launch electric vehicles to serve the rapidly growing mobility on demand industry of the nation.

In addition to this, major automakers across the globe have been preparing for the decline in car ownership rates as people shift to ride hailing services, on-demand rentals, and would embrace self-driving cars sooner or later. This has compelled the well-established automakers to fully acquire promising startups. For instance, BMW has recently acquired the full ownership of a leading European car sharing service, DriveNow. Considering the aforementioned instances of startup funding, strategic alliances, and acquisitions, it won’t be an overstatement to claim that the commercialization scale of car sharing market is set to witness a drastic surge in the upcoming years.

Concurrently, regulators across developed and emerging economies have focused on formulating robust transportation policies which aim to improve mobility effectiveness by lowering road congestion along with reduced levels of GHG emissions. The future of mobility on demand industry, of which car sharing vertical is the most significant component, is currently being shaped by huge investments, strategic acquisitions, and robust partnerships across various geographies. Moreover, the rapid adoption of advanced technologies such as IoT, big data, artificial intelligence is slated to boost the revenue share of car sharing market share estimated to surpass USD 11 billion by 2024.

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