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Shared Mobility Market | Key Business Opportunities Along With Potential Challenges

Shared mobility is a type of service in which a vehicle is shared based on the time and distance it is used in return for money. In shared mobility, a vehicle owner or the owner of a large fleet provides the vehicle on a rental basis to consumers and other companies. Shared mobility comprises sharing a car, a ride, a two-wheeler, and sharing trucks and buses.

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Key driver of the global shared mobility market is low per capita income of people in developing nations. Shared mobility services provide short-term ownership to consumers at a significantly lower price, and hence, consumers prefer shared vehicles instead of owning one. A vehicle, if not shared, is only utilized for up to 5% of its total life; it remains parked for 95% of its life. Considering this, several vehicle owners are readily sharing their vehicles. Increase in number of vehicle owners has led to increased traffic congestion and rise in global emission levels.

Consequently, governing bodies are promoting alternative fuel powered vehicles and alternative modes of transportation that are capable of limiting the global temperature rise. Shared mobility services are effectively capable of reducing the number of vehicle owners and hence, governing bodies are implementing regulations in favor of shared mobility services. Consumers who do not own a vehicle are preferring a shared vehicle, as a shared vehicle provides vehicle ownership without having to invest in owning one, which is further compounded by the increased interest rates on vehicle loans.

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Increased tourism, rise in number of family outings, and raised per capita income are fueling the demand for shared mobility services. Increase in number of working class people is prominently fueling the demand for shared mobility services across the globe. Availability of faster internet connectivity, increased mobile ownership, availability of mobility sharing apps, and increased consumer awareness are fueling the global shared mobility market.

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