New analysis from Frost & Sullivan finds that carsharing membership will grow from the mere 1.3 million in 2014 to reach 9.8 million in 2025, growing at a compound annual growth rate (CAGR) of 19.9%.
|Travel and expense management company Certify’s Q2 analysis on business expense trends found that Uber, the popular ridesharing service, continues to grow with business travelers, comprising 55% of ground transportation receipts compared with taxi services at 43%.|
|In Q1, Uber had 46% of receipts compared with taxis at 53%. When including rental car data, Uber grew from 8% in Q2 of 2014 to 31% in Q2 of 2015. During that same 12-month period, taxi usage declined from 37% to 24%, while rental cars dropped from 55% to 45%.|
|Top cities for Uber customers, based on percentage of receipts, are San Francisco (79%), followed by Dallas (60%) and Los Angeles (54%). Lyft, although comprising only 1% of ground transportation receipts, showed growth of 153% in ridership over Q1.|
|“Our latest survey shows that for the first time, Uber overtook taxicabs, when competing for the business traveler dollar Along with an uptick in the use of both Lyft and Airbnb, it’s clear that the sharing economy is here to stay for business people. We believe this market shift is based on both convenience and price, since these newer services are typically more cost-effective compared with traditional vendors. Established travel providers will need to adapt quickly or face further market share erosion to the sharing economy..”|
—Robert Neveu, CEO of Certify
Over the past three years, peer-to-peer (P2P) car sharing in Europe and North America has changed from a basic service provided by grassroots organizations to a widely recognized, transformative urban transport industry. As traditional P2P carsharing operators (CSOs) diversify their business models to include airport and train station rentals, P2P carsharing is quickly becoming an affordable, accessible, and integrated multi-modal transport solution, Frost & Sullivan said.
P2P carsharing has evolved into an opportunity to enhance economic sustainability and simultaneously produce benefits such as emission reduction, fuel savings and returns on investment. High online connectivity and smartphone penetration too have fast tracked the use of P2P carsharing.—Krishna Achuthan, Frost & Sullivan Automotive & Transportation Research Analyst
However, not all vehicles are equipped with telematics devices and connectivity as they require the vehicle model to support the hardware. Further, stringent state insurance laws, legal regulations, and increasing insurance costs in Europe and North America could slow down adoption to an extent. Market participants may be forced to seek funding from venture capital firms to offset inadequate revenue inflow, the analysis cautions.
Nevertheless, the market in Europe and North America will eventually thrive as the allure of a 40% reduction in vehicle rental costs attracts end users to P2P carsharing. Integration with other business models such as ridesharing and traditional carsharing will enhance transport options and broaden the vehicle base for P2P CSOs.
Strategic Analysis of European and North American P2P Carsharing Market (MB15-18) is a Strategic Insight that is part of the Automotive & Transportation Growth Partnership Service program. The study details regional segments, comparing European and North American P2P CSOs, traditional and P2P carsharing business models, and market channel strategies. The research introduces new market segments that have developed to meet evolving customer needs, and discusses the impact of automotive Mega Trends on this market. In addition, it highlights key technology trends and the integration of P2P carsharing with other business models.