Should Automakers Be Afraid of the Growing Car-Sharing Industry?

Changing auto industry dynamics

The dynamics of the auto industry are changing at a fast pace. Companies such as Tesla (TSLA) and Nissan have increased the adaptability of electric vehicles. In the last couple of years, the auto industry has changed in terms of vehicle ownership patterns. Instead of buying a car, customers prefer to hail a driver or share a ride. Let’s take a look at the current car-sharing industry.

Should Automakers Be Afraid of the Growing Car-Sharing Industry?

How is the car-sharing industry growing?

As the name suggests, car-sharing is a service that allows users to rent a vehicle for a specific time period. The charges for these services vary depending on the type of vehicle and the time period.

In many cases, even people who already own a vehicle use such services. They may already own a hatchback but want to have a luxury sedan for a trip. Currently, many car-sharing companies are providing one-way and round-trip services to their customers. We’ll discuss this more in the next part of this series.

Series overview

In this series, we’ll take a look at the car-sharing industry and its future growth potential. We’ll find out more about the major markets for the car-sharing business. Later, we’ll discuss the key market players in this business. We’ll conclude the series by looking at the car-sharing businesses of automakers (XLY) such as Volkswagen (VLKAY), General Motors (GM), and Daimler (DDAIF).