13 Jul 2023 | 2 min read
In recent years, the sharing economy has witnessed remarkable growth across various industries, and the automotive sector is no exception. The sharing economy is an economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the internet. Traditional car ownership is being challenged by innovative alternatives typical of the sharing economy providing flexibility and convenience. One such trend that has gained significant traction is the vehicle subscription solution. This article explores the rise of vehicle subscription services and their impact on the automotive sharing economy.
The concept of shared automobility consists of utilizing vehicles as a service rather than owning them outright.
Shared automobility appears to be here to stay! According to Statista, in the shared Vehicles market, the number of users is expected to amount to 5.09bn users by 2027. While the user penetration is 88.3% in 2023 and is expected to hit 92.8% by 2027.
Shared mobility encompasses various forms of transportation, including car subscription, car sharing, ride-hailing, bike sharing, peer to peer car sharing and more. Within this realm, vehicle subscription services have emerged as an increasingly popular option for individuals seeking a flexible and hassle-free approach to accessing vehicles.
Vehicle subscriptions within the realm of shared mobility operate on a membership or subscription basis. In this way they allow individuals to have on-demand access to a fleet of vehicles without the responsibilities of the traditional car ownership.
If you want to know how a car subscription model works, in our previous article we have highlighted the main features of a vehicle subscription model.
Vehicle subscription solutions promote the concept of sharing resources, leading to a reduced environmental impact. In this way with a shared pool of vehicles, the number of cars on the road can be significantly reduced. This results in lower carbon emissions, reduced traffic congestion, and a more sustainable urban environment.
Vehicle subscription services can evolve into peer-to-peer car sharing platforms. Vehicle owners can leverage the subscription model to rent out their cars during idle periods, generating additional income. This decentralized approach allows individuals to contribute to the sharing economy while optimizing the utilization of existing resources. Vehicle subscription services can evolve into peer-to-peer car sharing platforms. Vehicle owners can leverage the subscription model to rent out their cars during idle periods, generating additional income. This decentralized approach allows individuals to contribute to the sharing economy while optimizing the utilization of existing resources.
Vehicle subscription services complement public transportation systems and help bridge the gap between private car ownership and shared mobility solutions. By providing a convenient alternative to car ownership, these services encourage individuals to rely less on personal cars, promoting a more efficient and multimodal transportation ecosystemons.
Vehicle subscriptions play an important role in the shared mobility revolution. By offering a flexible and convenient alternative to traditional car ownership, these services provide individuals with access to a diverse range of vehicles without the associated burdens. As the demand for sustainable and cost-effective transportation options continues to grow, car subscriptions are expected to play an increasingly significant role in shaping the future of shared mobility.