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Car sharing? No thanks

Car sharing (in which users rent vehicles for short time intervals, typically by the hour), has experienced unprecedented growth over the past few years, but according to new research from Mintel, ride sharing (or carpooling), has become the preferred option.

Twice as many consumers have used a ride sharing service (18%) compared to a car sharing service (9%) in the past year.

Younger consumers are leading this trend, with 29% of consumers age 18-24 using ride sharing services compared to just 7% who use car sharing services, according to the research.

What’s more, 54% of people who previously used car share services said they had taken up ridesharing as a preferred option.

Buddy Lo, Automotive Analyst at Mintel. “We see a direct correlation in the decline in car sharing and the rise in ride sharing, and not by coincidence, as consumers are opting for better experience.  …ride sharing not only offers consumers a reasonably priced alternative, but also on-demand service.”

Conventional wisdom points to car sharing as a service that best serves people without a vehicle, but Mintel research reveals that is not the case. In fact, nearly all (98%) car sharing service users report that they own at least one car in their household, while 70% have at least two cars.

As people latch on to the realisation that ride sharing is an easier and likely more cost-effective option, the rise in popularity is being made apparent across the globe.

Ride sharing, or carpooling, is especially effective for commuting as it addresses not only the problem of a high volume of single-occupancy vehicles all travelling to the same destination (and commonly at the same time), saving users money on their daily commuting costs, but it also tackles the prolific problem of workplace parking by freeing up car parking spaces.

Some organisations which have partnered with Faxi even offer those employees who use the Faxi carpooling app priority reserved car parking spaces at work.

To find out more about how your organisation could benefit from a Faxi carpooling scheme, get in touch.