It’s the end of vehicle ownership as we know it.
With the rise in popularity of leasing, ride-sharing/ride-hailing and autonomous vehicles, the decline of individual vehicle ownership is inevitable.
Four years ago, the automotive industry passed a pivotal moment when the US Census Bureau published a survey showing that over 90% of households reported having at least one car. Today, car ownership has almost achieved peak market saturation. We are now at a tipping point—the other side of the bell curve.
Although we love our cars, owning a vehicle comes with major drawbacks. The financial drain of maintaining a vehicle along with the inefficiencies associated with millions of cars on the road doesn’t make sense. The growth of new technologies in the temporary transportation market has allowed end consumers and automotive businesses to reconsider their mobility options.
Let’s explore alternatives to vehicle ownership:
Probably the most well-known option, leasing essentially takes the burden of repairs off the driver’s shoulders. Unlike owned cars, leased vehicles are typically new, and the individual can switch cars with greater ease. Subscription-based models enable renting without a long-term contract.
• Ride-Sharing/ Ride Hailing
If you live in an urban area, you’ve likely grabbed an Uber or Lyft. No need to worry about parking! The convenience and efficiency of ride-sharing/ride-hailing offers a viable solution for getting around without the hassle of taxis.
• Autonomous Vehicles
Driverless cars may be in limited supply now but will become mainstream before 2050. Unlike cars of the past, the driverless car of the future will be shared and requested using your smartphone. Vehicles will be owned by both OEMs and giant technology companies.
As individual ownership of vehicles dwindles, the importance of fleet management companies increases. The successful transport of millions of people requires companies to run their fleets with extraordinary efficiency.
TSD’s versatility and cutting-edge technology enable fleet managers to evolve as the market changes. No matter what the future of mobility brings TSD has the solution.