Published: October 29, 2014 | London, UK
TechNavio, a tech-focused research firm published a new report on the Car Sharing Market in North America, which indicates that the membership-based, self-service driving system is expected to grow at a CAGR of 27.99 percent from 2014-2018.
Carsharing is a membership-based, self-service system that contains a network of stations and vehicles, which is an alternative to traditional car ownership for individuals and companies. In this system, vehicles are owned by a separate firm or an organization or individuals, and are shared by users for short periods of time. Over the past three decades, carsharing has grown from a basic service provided by popular organizations to a widely recognized Urban Transport industry. It is also quickly developing into a globalized industry providing transportation, land use, environmental, and social benefits.
Traditionally, car sharing organizations (CSOs) provided services through a two-way model. However, the latest report by TechNavio focuses on the growing diversity of sharing systems that aim to offer a range of service models to cater to individual and corporate customers. CSOs like Car2Go, Communauto, Zipcar and Liftshare are reimagining their sharing models to provide more flexibility to customers.
The peer-to-peer model allows car owners to rent their vehicles to others through CSOs for short periods of time. The revenue earned is shared between the individual and the CSO, but the ownership lies with the individual. The one-way car sharing system helps customers choose their pick-up and drop-off points. These models offer convenient, flexible options to users, and it is this kind of evolution that will help the car sharing market in North America continue it’s strong upwards growth through 2018.
“One-way and peer-to-peer car sharing models have been developed, which are becoming increasingly popular among users,” says Faisal Ghaus, Vice President of TechNavio.