P2P Carsharing companies collaborate with shared mobility stakeholders

January 17, 2019 9:12 am

 Peer-to-peer (P2P) carsharing is disrupting private vehicle usage and travel by filling the gap between traditional carsharing and car rental models. The concept is rapidly gaining currency, as demonstrated by the increase in the number of P2P carsharing operators from 10 in 2009 to more than 50 in 2018. This escalating competition is prompting a series of mergers and acquisitions and technological innovations to boost domestic and global growth.

Eventually, by 2030, P2P carsharing is expected to become a part of the largerintegrated multimodal networkwith other shared mobility services such as traditional carsharing, P2P parking, and ridesharing.

Connected cars, steadily growing mobile penetration rate, and the advent of advanced networking technologies such as 5G are likely to enhance P2P car sharing features and services over the next three to five years,” said Abhishek Iyer, Mobility Research Analyst. “Artificial Intelligence (AI)-enabled assistants, blockchain-based payments, and smart contracts will also stoke greater demand among the current generation of users while paving the way for new business models.”

Read: Witness in numbers how future mobility is driving innovation

Frost & Sullivan’s recent analysis, Strategic Insight into the Global P2P Carsharing Market, 2018, introduces new market segments that have developed to meet evolving customer needs, and discusses how the market is poised for growth.

Image courtesy of Frost & Sullivan

It highlights the key technology trends, interest of automotive OEMs in P2P carsharing, investments and partnerships between P2P carsharing and other business models, and expansion strategies of P2P operators in select regions. The study also includes the various initiatives from investors, governments, transit authorities, technology providers, original equipment manufacturers (OEMs), and new mobility service providers. Finally, it profiles the major participants in the global market and offers strategic recommendations and conclusions.

“OEMs are also showing keen interest in the P2P carsharing concept and are launching their own services as part of their mobility strategy for the future,” noted Iyer. “However, state insurance laws, regulations, and rising insurance costs are restraining the market to some extent. Countries such as Germany, on the other hand, are promoting shared vehicles as part of their future ecosystems and are working on policies to support these frameworks.”

Read: Siemens has big dreams for Middle East’s future mobility

Overall, the P2P carsharing market could potentially cross $4 billion by 2030 if service providers make the most of the revenue opportunities presented by:

·        Introducing P2P carsharing in strategic locations such as those with inadequate public transport systems or a high density of young population (25-40 years olds).

·        Increasing environmental awareness and building trust through community feedback and rating mechanisms, coupled with loyalty or reward programmes.

·        Forming synergies between OEMs and P2P operators to generate new revenue streams.

·        Identifying new areas of innovation and improvement of existing platform to offer more engaging and seamless user experiences.

·        Garnering support from local regulatory bodies and lobbying for the establishment of clear policies.

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Strategic Insight into the Global P2P Carsharing Market, 2018
 is part of Frost & Sullivan’s global 
Automotive & Transportation Growth Partnership Service program.

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action

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AMEinfo Staff
By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.