Ride Sharing Can Change the Automotive Industry

What does ride sharing mean? How does it affect the automotive industry? ride sharing, as its name suggests, involves having people use fewer cars instead of each one of them buying one. Since most people won’t buy cars, this suggests that the vehicle manufacturers and suppliers will have reduced sales and revenues.

Shared mobility is being encouraged today like never before, according to lockboss.ie, “owing to the fact that countries want to preserve the environment and ease congestion on the roads.” However, in every circumstance, there is always an opportunity for growth. Let’s discuss this opportunity.

The Future of Car Sharing

Today, majority of people are embracing car sharing. But does this really mean lower sales for automotive manufacturers and suppliers? Car sharing will slow down vehicle sales but it won’t reverse them. Yes, there will be fewer vehicles on the road because people won’t buy vehicles as much. But developing countries will definitely surpass the impact of car sharing over the next twelve to fifteen years, according to Langer & Langer

This means that by year 2030, about a third of the expected increase in sales and revenue from economic growth and urbanization will not happen due to car sharing. Car sharing is not that bad for the future of automotive industry if the players start positioning themselves strategically right now. In every industry that is expected to grow, change must happen. Most people loathe change. Yet it’s the one thing that propels growth.

According to MADDOX, SEGERBLOM & CANEPA, LLP, Vehicle sales and revenues will definitely surpass the impact of car sharing because of the expected growth in Asian countries and the high frequency of vehicle replacement due to their frequent utilization. Car sharing will also replace car ownership in a partial way. A research conducted by McKinsey showed that sixty-seven percent of Americans would rather drive their own cars than use ride-hailing apps. Again, sixty-three percent are not interested in giving up their vehicles for car sharing even if they are free.

Sharing car is at the embryonic stage right now yet new players in the market are climbing to the top faster and overtaking large vehicle manufacturers with regard to market valuations and this suggests that they are supported strongly by investors.

The Car Sharing Market

In Asia, Europe and the United States, the mobility industry was valued at $54 billion back in 2016. This market should continue to grow as the years’ progress. According to Mainor Wirth Injury Lawyers, in a positive scenario, there should be a high demand for self-driving shuttles in cities and locations with low population. This means that there should be a 28% growth per year from the year 2015 to 2030. Even in a negative scenario, where people do not embrace robo shuttles readily, there will still be a 15% growth every year.

A research conducted by law essay writing service found out that China and the United States are the largest markets in the world for car sharing. China’s market is valued at $24 billion and America’s is $23 billion. E-hailing players have dominated the market owing to the fact that they hold a market share that is above 80% in both countries respectively. Europe’s market is quite small compared to China and the United States with a valuation of under $6 billion.

In Europe, car sharing is regulated by cities individually. The business is also asset intensive. Also, European countries have different mobility models meaning that market segmentation surveys need to be conducted in every city.

For instance, Berlin is convenient for car sharing due to multiple players and limited opportunities for e-hailing because of the regulations in the taxi industry. On the other hand, Beijing has a car sharing market that surpasses $700 million. Due to the strong e-hailing market, Beijing has one company that has control of 90% of the market.

Some of the limitations that come with car sharing include:

  • Lack of such solutions in rural areas
  • Poor connection between car sharing and commuting due to the costs and the availability of cheap options like carpooling
  • It does not favor running common errands such as shopping trips

The growth of car sharing depends on how the industry effectively does away with existing factors that prevent customers from embracing it. For instance, car sharing can result to people feeling uncomfortable among other strangers while commuting alone might be too expensive for the ordinary person to use on a daily basis.


Vehicle manufacturers who want to position themselves strategically will benefit immensely from any turn that the market might take in future. Here are some of the strategic points to consider.

  • Purpose built vehicles – To win, strive to be the first to manufacture purpose-built vehicles and work together with other companies that support shared mobility to gain a higher percentage of the market share.
  • Become an active player – Discover some of the best ways to access shared mobility platforms to start attracting customers.
  • Operate a fleet – Create strong relationships with cities and invest heavily in building your capability.

Taking advantage of the future by strategically positioning yourself will definitely make you successful. Prepare for change today.


Nicholas Walker is an experienced content writer and editor for Automated. He loves sharing his experience in the automotive industry and inspiring people to embrace change on his blog. During his free time, you’ll find him playing with his dog or listening to music.

Author: Brandon Park