Tuesday, November 4, 2014

Sharing and the Future of the Car

From a report by McKinsey:
"Technology and connectivity pose the question of whether it’s necessary to own an automobile. Car sharing is a prominent example: the consumer pays to use vehicles only as needed and foregoes the responsibilities—and benefits—of individual ownership. Car-sharing services, which allow people to make a reservation at the tap of a personal mobile device, are expected to grow significantly in the next two years, with dramatic increases in the number of users and in revenues.12 These developments also defy the very notion of a car as a personal, autonomous machine. Already, “millennials” (the 18–34 demographic) appear to place less importance on car ownership than previous generations do. They are more open to sharing cars and to the rapidly growing number of “mobility services,” such as Uber and Lyft.
Yet increased car sharing does not necessarily translate into fewer car sales. Our analysis suggests that as it becomes more common, both car usage and wear and tear will rise in turn. The average distance driven per person probably will not decrease; in fact, it may creep up. We would expect a broad car-ownership regime to include a variety of vehicle types, at both ends of the spectrum: not only more utilitarian, almost “vandal-proof” fleet cars for shared rides but also higher-performance “fun” cars for those who still enjoy being behind the wheel for a Sunday drive. Often, the same drivers will be in both segments—just as, for example, a consumer may purchase fast food for some meals but still enjoy a Michelin-starred restaurant for special occasions. In an era of megacities and congested urban areas, personal-mobility services will help transportation become more flexible."

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