Car Sharing Could Change How We Get Around
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The Wall Street Journal reports that popular carsharing app Turo saw its first profitable quarter and increased revenue by 7% during the pandemic. The app provides car owners the chance to rent their vehicles out to any driver who also is using the app. "I am not expecting things in this industry to settle any time soon," Bellos said. "I expect to see continued experimentation from third-party providers and car manufacturers with different mobility options. It is like a puzzle and the goal is to find out how the different pieces fit with each other." SolStock / Getty Images Not everyone likes the idea of using an app to share a vehicle with other people who don't have an owning interest in it. "Don’t rent your car unless you want it destroyed," Florida resident Mike Arman said in an email to Lifewire. "The people who benefit are the app providers and the borrowers, who get full control of an expensive and delicate asset for a few bucks." Arman has been involved with the vehicle rental business a few times and doesn't offer rave reviews. In his experience, he feels the cars get abused if the owner is lucky, wrecked if they are not. "If it’s any kind of performance car, the very first thing they do is see how fast it will go. If it is an economy car it gets treated as a disposable item," he explained.
Car Sharing Could Change How We Get Around
Why buy a car when you can rent one?
By Alex Zorn Alex Zorn Freelance Technology Reporter Alex Zorn started as a writer for Lifewire in 2021 to focus on a wide range of topics in the streaming, gaming, and tech worlds. He’s been a freelance writer on-and-off since deciding that he wanted to be a journalist and continues to work for newspapers across the state of Colorado. lifewire's editorial guidelines Updated on January 21, 2021 05:39PM EST Fact checked by Rich Scherr Fact checked by Rich Scherr University of Maryland Baltimore County Rich Scherr is a seasoned technology and financial journalist who spent nearly two decades as the editor of Potomac and Bay Area Tech Wire. lifewire's fact checking process Tweet Share Email Tweet Share Email Smart & Connected Life Mobile Phones Internet & Security Computers & Tablets Smart Life Home Theater & Entertainment Software & Apps Social Media Streaming GamingKey Takeaways
Carsharing is a largely private car rental service that lets drivers rent cars by the hour from vehicle owners or rental companies. Experts say carsharing is on the rise because it meets mobility needs and provides access to more vehicle choices. Some users caution that carsharing may not be the best choice if you're a vehicle owner. Willie B. Thomas / Getty Images Carsharing is becoming a popular way to solve the car ownership dilemma, and analysts expect the industry to continue to grow and innovate, but not all vehicle owners think carsharing is a great idea. A recent study from market research company Frost & Sullivan found that the global carsharing market is expected to grow from over 7 million members and 112,000 vehicles in 2015, to 36 million members and 427,000 vehicles by 2025. With well established brands like Turo and Zipcar already leading the market, new apps entering the fray will need to build trust and get creative for owners to understand the value of carsharing. "Broadly speaking, there are two types of car sharing services: peer-to-peer and business-to-consumer," Ioannis Bellos, George Mason University School of Business associate professor, said in an email to Lifewire. Examples of P2P are Turo and Getaround, whereas Zipcar is an example of business-to-consumer. "In both programs users pay to drive a car they do not own,” Bellos said. "Uber and Lyft give users the opportunity to meet daily mobility needs, but Turo offers longer-term rentals and provides access to more exotic car models."Carsharing Is Still Finding Its Niche
The Wall Street Journal reports that popular carsharing app Turo saw its first profitable quarter and increased revenue by 7% during the pandemic. The app provides car owners the chance to rent their vehicles out to any driver who also is using the app. "I am not expecting things in this industry to settle any time soon," Bellos said. "I expect to see continued experimentation from third-party providers and car manufacturers with different mobility options. It is like a puzzle and the goal is to find out how the different pieces fit with each other." SolStock / Getty Images Not everyone likes the idea of using an app to share a vehicle with other people who don't have an owning interest in it. "Don’t rent your car unless you want it destroyed," Florida resident Mike Arman said in an email to Lifewire. "The people who benefit are the app providers and the borrowers, who get full control of an expensive and delicate asset for a few bucks." Arman has been involved with the vehicle rental business a few times and doesn't offer rave reviews. In his experience, he feels the cars get abused if the owner is lucky, wrecked if they are not. "If it’s any kind of performance car, the very first thing they do is see how fast it will go. If it is an economy car it gets treated as a disposable item," he explained.