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Overview of Car-sharing Models

2018-12-24 14:12 Monday

Shared transportation has captured the public imagination and attracted great interest from leading technology companies. Projections from Roland Berger suggest that China's car-sharing market has reached 3.7 billion RMB in 2018 and will exceed 12 billion RMB in 2020, indicating a promising future.

car sharing

However, the failure of many car-sharing enterprises has also been notable in recent years. Many car-sharing enterprises have improperly invested user deposits to expand their business, resulting in situations in which the deposit cannot be returned, and a poor user experience. Furthermore, users have also complained about the lack of parking spaces as well as the scattered distribution of charging stations.

Similar Challenges in the United States.

Uber CEO Dara Khosrowshahi has maintained that driving during rush hour is the height of inefficiency. He notes that share cars are most used during rush hour, leading to a high degree of risk, and that car sharing will not challenge the dominance of ride-hailing in the near future.

Car Sharing has Gained Wide Acceptance in Japan and Europe

Nissan has  partnered with Japanese retailer Kohnan Shoji to open more than 100 car-sharing parking lots near  Kohnan Shoji store locations. The number of e-share parking lots in Japan is expected to reach 500 by the end of March 2019, assisting non-vehicle owners in the transportation of heavy and bulky items.

Volkswagen Group has unveiled its car-sharing concept We Share, and plans to invest more than 4 billion USD  on the project. We Chat will initially include 1,500 e-Golf model and 500 e-up model shared cars that will hit the Berlin market in 2019. Young consumers who are reluctant to purchase cars are the primary target demographic. Volkswagen estimates that the number of shared cars in Europe will increase at an annual rate of 15%, and has thus decided to make We Share accessible across the rest of Europe and the United States.

Despite the failure of car-sharing enterprises in China, user demand is still high. If the industry optimizes operations and works diligently to improve the user experience, the future will undoubtedly lead to profitable car sharing models.

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