4 Rapidly Growing Shared Mobility Sectors that Point to Automotive Retail Transformation

January 17th, 2020 | by Mark Thomas, EVP of Marketing and Alliances | Posted in: Insight on Things

Rapidly growing shared mobility sectors

Headlines about traffic congestion and poor air-quality point to a changing transportation landscape in major cities around the globe. A resulting trend, shared mobility, is something dealers can’t ignore. Innovative dealerships are well-positioned to make the most of this change.

1. The Rise of Ride Hailing companies like Uber and Lyft.

Ride hailing, ie Uber and Lyft, uses an app to connect people who need a ride with those who are willing to drive. In New York City in 2018 ride hailing transported almost twice as many people as taxis, and 6 times more in the outer boroughs. In most markets, there is a need for drivers and affordable short term access to vehicles.

2. The Rise of Carsharing

Carsharing, controlled by an app, allows car pickup from the side of the road, and to leave it parked almost anywhere when done. Many OEMs have backed companies like Car2Go and Free2Move, allowing them to gain direct customer access. Dealers have many assets that enable ease of entry into the carsharing market.

3. The Rise of Subscription

Introduced recently by Volvo, BMW, Mercedes and Porsche, the subscription model allows a customer to pay for a vehicle on a month to month basis and access any car they want. This allows the right car at the right time for one all-in fee. And creates a new customer engagement strategy for dealers.

4. The Rise of Micro-Mobility

Micro-mobility, lets consumers grab a bike or e-scooter via an app and ride on a pay per minute basis. The cheap and accessible nature has resulted in larger e-scooter companies achieving 10 million rides in 1 year of operation. As an adjacent market, micro-mobility provides a compelling dealer brand extension to reach new customers.

Shared mobility is quickly growing in popularity and has the potential to completely change traditional dealerships.  Ridecell provides a shared mobility platform for dealers to allow their customers to experience the convenience and cost-effectiveness of shared mobility.

Author: Mark Thomas, VP of Marketing and Alliances, Ridecell

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