Skip to main content

How the Sharing Economy will Gain New Momentum

Airbnb did it to the hospitality industry. Then, Uber did it to taxi services. Now driverless cars are going to totally disrupt the whole automotive industry, propelling car sharing services forward as the ultimate, mainstream transportation mode.

This new car sharing economy is already well in motion. According to the latest worldwide market study by ABI Research, they are forecasting that 400 million people will rely on robotic car sharing by 2030.

"The new car sharing economy happens in three phases: street rental service, ride sharing service, and robotic service," says Dominique Bonte, vice president at ABI Research. "The automotive industry is in the process of merging phases one and two, with robotic service to become the ultimate form of transportation for its availability, convenience, and affordability."

The Sharing Economy in Action

Zipcar, the world's largest car sharing and car club service, is a prime example of street rental service. Interested users go to a pre-determined parking spot to unlock a shared car, ride it to their destination, and then return it for the next user.

Uber is a primary example of the ride sharing service, through which companies hire private drivers to drive their own vehicles to transport customers. ABI believes that the innovative robotic service will mark the beginning of the driverless car era, in which cars can drive themselves to pick-up customers.

"Car sharing is successful because the increased efficiency through higher vehicle utilization rates drives down costs, which results in more affordable transportation," continues Bonte. "Why go through the expense of purchasing a car, and then regular insurance and maintenance fees, when we can all embrace the new car sharing economy?"

According to the ABI assessment, the new car sharing economy is a classic example of crowdsourcing, and as such is driving many GenY supporters. The principal benefits extend beyond the collaboration aspect, and include the ability to tap into and monetize personally owned assets and real-time matching of supply and demand.

Shared Transportation Market Development

Accurately matching transportation supply and consumer demand was previously considered a challenge, but now ABI analysts believe that the new car sharing model will increase car capacity, when required, through dynamically optimizing pricing.

For instance, Uber's surge pricing system significantly increases rates during peak times to increase driver incentive and ultimately place more cars on the road to improve availability. Once Uber achieves its goal, it lowers the rates back down to their standard level.

In all, successive generations of car sharing will progressively impact and disrupt markets and verticals, such as private transportation, public transportation, and ultimately the entire automotive industry. Traditional auto rental companies, as an example, seem particularly vulnerable.

Once the new car sharing economy reaches its final frontier, ABI says robotic car services will transform the industry -- resulting in decreased car ownership, blurred lines between public and private transportation, enhanced social mobility, new infotainment paradigms, and an overall consolidation of the automotive industry.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno