Research firm Frost & Sullivan says that its latest research points to car sharing in select European cities ‘fast gaining ground’.
The Frost study forecasts that traditional car sharing in Europe will increase from 0.7m members in 2011 to more than 15m members in 2020. It says the major interest groups include the young, the well-educated, the office goers, and university students, with no children.
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“The car sharing trend is catching on rapidly due to its convenience and all-inclusive nature,” said Frost & Sullivan Automotive & Transportation Research Analyst Ricardo Moreira. “The deal clincher, however, is its cost efficiency, which was cited by 61 percent of the respondents.”
As far as vehicles goes, Frost & Sullivan forecasts that traditional car sharing in Europe will reach nearly 0.24m vehicles by 2020. Basic and small vehicles are currently popular options among car sharing operators (CSO), Frost says.
The future of the market however, will be determined by Peer-to-peer (P2P) car sharing. Though only 18 percent of respondents seem willing to share their own cars, P2P car sharing has been growing rapidly since 2008, having recorded 100 percent growth between 2010 and 2011. As a result, the market is expected to have nearly 0.31 million vehicles in operation and more than 0.74 million members by 2020.
While there is little doubt that the car sharing model is a hit in Europe, Frost says, it has not reached its optimum potential due to attitudinal and operational issues such as the unavailability of a vehicle within short notice, the loss of flexibility, and customers’ reluctance to pay an up-front membership fee.
“To expand the scope of car sharing services, CSOs could direct their marketing and educational campaigns at the younger demographic. Liaising with universities to build awareness among students prior to the start of their careers would be a wise move,” noted Moreira. “Further flexibility using location-based services could also be built into the service to attract a larger pool of customers.”
