Research firm Frost & Sullivan (F&S) estimates that the global membership of car sharing clubs now exceeds 3.5m with 70,000 vehicles in the global car sharing fleet.
F&S estimates that Europe and North America dominate the global car sharing market. Europe is estimated to have 1.5m members and 31,500 vehicles and North America is put at 1.2m members and 22,100 vehicles (2013 estimates).
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“It really is a dynamic and fast moving business space and we are seeing a number of different business models emerging,” says F&S partner Sarwant Singh. He highlights corporate car sharing as an area that is rapidly developing. “It’s growing from a standing start and is an effective way for businesses to manage their costs. It can be a very attractive alternative to traditional carpooling.”
Rental and leasing companies have been quick to offer car sharing solutions for business fleet operators, but a number of OEMs – such as BMW with ‘Alphacity’ – are also now getting involved.
Singh cites a number of drivers for corporate car sharing such as the reduced total cost of mobility and the substitution of more expensive travel such as taxis. Rental and leasing companies have been very active in this market in providing solutions for business fleet operators, but a number of OEMs – such as BMW – are also getting involved.
“As well as the higher rate of fleet utilisation and cost savings, there are other benefits too,” he says. “It can be a way to improve a company’s image with up-to-date vehicles used on business rather than, say, employees’ own transport. It could even be seen as a perk. In addition, the latest vehicles score highly on sustainability grounds.”
F&S forecasts that the European corporate car sharing fleet will grow from under 2,000 units to over 84,000 by 2020, with over thirty operators and 4,000 companies implementing corporate car sharing. “Operators will also look to scale solutions globally to provide companies with international mobility solution, so we can expect to see further launches in the US & Asia,” he says.
F&S partner Sarwant Singh will be among the speakers at the upcoming Frost & Sullivan event, ‘Urban Mobility 3.0’ in London on June 25.
