Car Sharing Market : Analysis, Trends and Automation in 2021
The car sharing market is booming due to the emergence of new trends, business models and technologies. In this article, we will analyse the car sharing market in 2021 and how automation is playing a big role in a car sharing business.
The global car sharing market will reach $9 billion in valuation by 2026, growing at a CAGR of over 24% - Global Market Insights, 09 April 2020.
10% of the population is expected to adopt car sharing as their primary mode of transportation by 2025 - Zipcar
But, first what is car sharing?
Car sharing is a type of car rental that allows you to rent a car at any hour. It is more convenient for those who need a car for a shorter period of time. You are only billed for the usage (how far you have traveled).
Car sharing is a disruptive new way of car rental, like Airbnb was for accommodation booking and Uber for the taxi industry. - Car2go
According to a study by Frost & Sullivan on the Future of Carsharing Market to 2025, there are already 10 million in the shared mobility market.
The Europe car sharing market size is estimated to cross $4 billion valuation by 2024; Peer-to-peer segment to boost growth in North American market; Asia Pacific industry to register 31.5% CAGR through the projected duration
For the European car industry, the attention is more on shared electric cars. To address this increasing demand, Zipcar has partnered with Volkswagen to deliver the largest fleet of electric vehicles in the UK. Zipcar is one of the largest players and a pioneer in the car sharing industry with their presence in over 384 cities in the United States with 16000 vehicles and over a million members. Zipcar launched in 2000 as a membership-based car sharing company.
In early 2008, Car2go (Daimler Group) and DriveNow (BMW) formed a joint venture to bring the largest shared mobility system in the world, now named ShareNow. With this productive merger, today, they form part of the largest EV fleet across Europe in various cities with 3030 e-cars.
In the North American market, due to the huge success of the global car sharing industry, a number of key car players have been investing into car sharing services to level up their game. As per the industry analysis by the Global Market Insights, the car sharing market will exceed US$ 9 Billion by 2026.
In 2019, Movmi released the shared mobility city index edition where they compared data on shared mobility of 20 North American cities. San Francisco topped the list as a leader in the car sharing market. The city had both the one-way and two-way car sharing as well as the peer-to-peer car sharing.
The target market for car sharing is also focused on the millennial generation that are driving less and can’t afford to buy a car for their trips. This type of service to the new generation is convenient and can be used anytime and anywhere.
The car sharing market is predicted to grow at a substantially increased rate due to concerns for the environment and the increased fare rates of taxi drivers. Companies are investing heavily in the technology to improve the customer experience and security. Approximately 36 million drivers are expected to use car sharing services around the world in 2025 and, the two main reasons for this are the millennium lifestyle and the advanced technologies.
Even the government authorities are providing incentives for the smooth penetration of new players for the growth of the market. This shared mobility offering has been confirmed to have positive impacts on communities.
Benefits of Car sharing: Efficient, Sustainable and Cost Effective
The drivers of a car sharing business are the smartphones and technology. Unlock the car with your smartphone. Locate an available car within your city. Register for a membership service through the application on your phone.
- Car sharing is greener as it can replace up to 20 owned cars on the road. Thus, decreasing personal car ownership and motivating people to walk and cycle.
- It is less expensive than owning a car as there are high fixed costs associated with a private car (insurance, maintenance, parking). Car sharing eliminates all of those costs as you pay only for how much you drive.
- It is perfect for densely populated cities with huge traffic jams.
- At any time of the day or night, just by using the internet and your smartphone you can find the nearest vehicle that is available. Flexibility and convenience are the two main benefits of car sharing. Imagine how cool it is to just open a parked car with your smartphone?
3 types of car sharing programs
P2P (Peer-to-peer) Car sharing
It is a business model for car owners who want to rent their personal vehicles on a short time basis. This allows car owners to receive an income on the side when they are not using their cars on a regular basis. Turo is the world’s largest P2P car sharing company located in San Francisco. The fact that they raised $500 million in funding proves that there is an increased demand for the P2P marketplace.
Getaround and Drivy are also examples of the peer-to-peer car sharing.
B2C Car sharing
Drivers can rent the car owned by private car sharing companies. The best examples are Zipcar, DriveNow and Car2go. Car2Go's vehicles can be left in municipal parking lots throughout Seattle, Portland, Minneapolis,Texas.
The B2C car sharing can be categorised into three types:
- Free floating (station-less transportation sharing service) It is a simple and affordable car sharing service without a fixed station. And if you are using electric cars, you no longer have to worry about connecting to a charge point as you will be within a specific area with all the available charge points thus, promoting eco mobility.
- Station-based is a car-sharing business model where all the vehicles are located in a fixed place. Customers begin their trip at a fixed location and end it at the same place.
- A-B car sharing models are when you start the trip at point A and end it at a fixed point B.
Source: Movmi Shared Transportation Services Inc
Corporate Car sharing
B2B or corporate car sharing is accessible to only a specific group of people or community. For example, a company that wants to provide their employees with a professional shared mobility service.
Nonprofit car sharing
Nonprofit car sharing companies that support car sharing to make a positive impact on the environment and people’s health.
eGo Car Share at Colorado is the perfect example.
Automating your car sharing business to reduce time consuming tasks
Though the car sharing business is booming, it is important to understand the business model and the operations. Just like any other business, you will have to take care of the accounting & finance part, increasing your sales funnel while delivering the best to your clients.
It doesn’t matter in which car sharing program you are in; the moment you are penetrating the market, it becomes a real operating company. An example could be receiving repetitive emails from potential customers and having a mailbox overloaded with emails.
Why should you integrate Parseur with your car sharing business?
- Do you receive countless emails on a daily basis by a contact form posted to your email box?
- Do you have to extract specific data from those emails such as email addresses and phone numbers from leads?
- Do you have to send those data to your CRM or any other applications of your choice?
If this sounds like you, then having an automated workflow process within your business will not only help you save countless hours of manual tasks and money but also scale your business quicker.
What is Parseur?
Parseur is a powerful no-code data extraction tool that can automatically extract data from any email and document such as PDF or MS Word. The parsed data can then be downloaded, sent to Google Sheets or exported to any application via Zapier.
Parseur is totally and forever free for a limited number of emails sent per month.
Benefits of integrating Parseur with your car sharing business
Parseur is Point & Click and template-based, which means that you don’t have to be technology savvy to use the tool. Unlike other mail parsers, no parsing rules need to be created for the data extraction process.
With Parseur, you can:
- Create custom templates based on your requirements
- Parse support or help needed emails or SMS from car renters and pushing them into your support system, creating a support ticket and notifying the support staff
- Centralize rental bookings into a single agenda or business application so that you can offer your vehicles on multiple platforms at once, by parsing booking confirmation emails
- Aggregate your invoices into a single accounting system so that you can consolidate your monthly and yearly turnover across several car-sharing platforms
- Integrate with thousands of CRM, accounting, productivity applications
Real use case example at Parseur
Let’s take a look at a real use case at Parseur for P2P car sharing. Julien is in the car sharing business where he rents his vehicles on car rental platforms such as Getaround. With Getaround, cars can be rented at any hour with a 24/7 road assistance. Getaround Connect™ is an electronic device installed in cars and provides GPS tracking and anti-theft functionality. Only the owners and the verified renters can unlock the Getaround app.
When the rental is completed, as the owner, Julien receives a summary email with important information that he needs to extract and send to a Google Spreadsheet. Before Parseur, that process was a manual and time intensive one as his mailbox was overloaded with emails at some point.
With the integration of Parseur with his car sharing business, Julien no longer has to spend hours on manual tasks. From the moment he receives an email in his mailbox, everything is automated till the extracted data is sent to Google Sheets.
How does the data extraction process in Parseur works?
Once your mailbox has been created, forward your email to your Parseur mailbox. The email will arrive within 10 seconds. You can also create an auto-forwarding rule so that all your emails are sent to the mailbox automatically.
Parseur is template-based; you just need to highlight the specific information that you want to extract and create data fields for them. It’s as simple as that! And, you can create as many templates as you want.
What specific data can Parseur extract from car rentals’ emails?
With a powerful no code tool like Parseur, you can extract specific information based on your requirements. The data below are what can be extracted from your mailbox:
- Name of the car owner
- Address of the car owner
- License number
- Date of permit
- Type of vehicle
- Registration number
- Fuel type
- Date/Time the vehicle was used
- Fuel level
- Rental Price
- Distance traveled
- Date/Time the car was returned
Export the parsed data to any application
Zapier is a cloud-based automation tool that connects apps together and the most popular one. With Zapier, you can export the extracted data in real time to any other applications automatically such as Google Sheets.
With simple clicks, you can say goodbye to all your manual and time consuming tasks!
Undoubtedly, the car sharing business is growing at a tremendous pace with emerging opportunities. Last year, the Car Sharing City Awards 2020 was held by the carsharing association in collaboration with Movmi to celebrate the cities and people who are indulging themselves in the carsharing ecosystem. It is a transformational shift in the transportation industry that will only rise in the coming years.