Car sharing and other game changers
One out of 10 cars could potentially be a shared vehicle by 2030
We live in exciting times when it comes to the global automotive industry. Companies are developing innovative and affordable technology at a rapid rate; people are buying more new vehicles than ever before; and electric and autonomous cars are gaining ground.
There’s no question the industry is ripe for change.
One of the many emerging trends that will shape the auto sector for years to come is the rise of ondemand ride services.
While ride sharing is relatively new terrain, it has quickly become a goto mode of transportation for many. From vehicle services such as Car2Go and Modo, to carpooling websites, to e-hailing companies like Uber and Sidecar, there are multiple options for those who want mobility on demand.
In January, global management and consulting firm McKinsey & Company released a report on disruptive car trends they foresee in the near future and how they will affect the auto industry. A leading prediction was one out of 10 cars could potentially be a shared vehicle by 2030.
The authors behind the report say this growth will be due to a number of factors, including tighter emissions regulations, the rise of directto-consumer delivery, and the growing congestion of urban areas.
Canada already shows early signs of this prediction.
In January, Edmonton became the first Canadian city to legalize popular e-hailing service Uber. Ottawa followed suit this April, announcing regulations that allow the company to operate legally as of September 30.
Car-sharing companies also have a strong hold. In Vancouver alone, Modo, Zipcar, Car2Go and Evo all have hundreds of vehicles on the road. One of the newest, Car2Go, has grown its fleet to 550 vehicles in the short years since it was introduced in 2011.
In North America as a whole, McKinsey research shows annual growth in car-sharing memberships has increased by more than 30 per cent in the past five years.
This will affect the auto industry in a number of ways. For example, some new vehicles on the market may be specifically geared toward life as a shared car, designed for heavy use and high mileage.
It may also have an effect on car purchases. The report predicts sales numbers will continue to increase, levelling off to about two per cent annual sales growth in 2030.
There may be a slight reduction in sales due to car-sharing, but this will be offset by heavily-used ride share vehicles needing to be replaced more often.
Ride sharing services will also influence another growing auto trend — electric cars. Many car sharing companies, including BMW’s DriveNow and Mercedes-Benz’ Car2Go, revolve around electric vehicles (EVs). As these companies grow, so will EV sales.
As charging infrastructure develops and prices go down, EVs will become a viable alternative for more and more companies and people.
With the rise of ride sharing, a push toward electric vehicles, and a prediction of increasing sales for years to come, I have no doubt there’s big changes ahead for B.C.’s auto industry, and I look forward to seeing the shift moving forward.