Why Car Sharing Will Forever Change the Auto Industry

Here’s a stat that’s caught the attention of countless urban dwellers and millennials: Most cars sit parked, unused for approximately 22 of 24 hours each day.

Not only is it a depreciating asset, it’s a vastly under-utilized one as well.

That’s why a number of aggressive startups are plotting new ways to help people turn that idle time into money time.

Companies such as Getaround and RelayRides help people rent out their cars during down time. At the same time, Uber, Lyft, Sidecar and more connect car owners with people who need a taxi but are willing to forgo formalities for a more technologically savvy, cool way to flag, pay and rate a ride.

So what does this mean for the car industry and associated fleets? Prospective car owners will require a lot more wooing for auto companies to lock in the sale.

And get this: Ford recently launched a car-sharing program that seems to work much like an Airbnb on wheels. Not to be outdone, in Germany, General Motors launched a CarUnity app that enables owners of any brand to rent their vehicles to Facebook friends or people in the app’s network.

What’s more, as cars lose their luster, they become much more like transportation objects rather than status symbols on four wheels.

Tags: featured

Category: Consumer