Ride-sharing (UK) or Car-sharing (US) allows individuals to gain the benefits of private cars without the costs and responsibilities of ownership and they can be rented for short periods of time.
Ride-sharing market is growing fast, providing numerous transportation, land use, environmental and social benefits. However it is not cost effective when commuting to a full-time job.
A car is considered an expensive asset with unused seats, when it is just one person in the household, and loses value the moment it is first driven. Carmakers insist that some consumers are just delaying buying a vehicle, pointing the fact that the average age to stop driving has been increasing. Although, at CES, Mark Fields, Ford’s CEO, stated that in the future it would be ‘both a product and mobility company’, according to The Economist.
Membership of car clubs, that let people book through an app for periods as little as 15minutes, is growing by over 30% a year, according to Alix Partners, and it is estimated to hit the 26m members worldwide by 2020. Navigant Consulting informed that global ride-sharing services revenue will approach US$6.2 billion by 2020, with over 12 million members worldwide.
Car And US.com acknowledged that the main factors driving the growth of ride sharing are:
- Rising levels of congestion faced by city residents;
- Changes on generational mentalities about car ownership;
- Increased costs of personal vehicle ownership.