Ride-hailing companies like Lyft and Uber are changing traditional vehicle ownership and moving the market to subscription and shared vehicle ownership models.
During the Collision Conference held in Toronto, several attendees discussed how ride-hailing companies are also a good place for self-driving testing for safety.
“Your phone will be your car,” said Andre Haddad, CEO of Turo, a peer-to-peer vehicle-sharing company that allows consumers to rent their car out to others.
Haddad also stated that even with vehicle sales on the ride, consumers are seeing private vehicle ownership as a cost burden with the high cost of insurance, parking, and auto loan payments.
“Many more are realizing they can share their car when they’re not using it or rent it out to recover the big costs of ownership,” he added.
Uber is currently the biggest ride-hailing company in the world with around 91 million users and a 65% market share in North America. Uber and Lyft also recently went public earlier this year, but both of their stocks are trading lower than expected.
Haddad also pointed out that younger consumers are owning fewer cars and those under 25 are buying less vehicles. He does expect demand for cars to stay up during weekends, vacations, and other events.
The CEO of Filld, Scott Hempy, a gas delivery platform, also said that recent trends in the job market like remote work has helped decrease interest in private car ownership. He also predicted that due to ride-hailing, insurance companies would begin to charge by the mile instead of their usual flat fee.
Zaki Fasihuddin, the CEO of Volvo Cars Technology, believes fleets and taxis used for ride-hailing are perfect to test for automation. These ride-hailing vehicles could be where the first set of self-driving apps could be used in and effort to increase safety.
“Give consumers the choice,” said Fasihuddin. “Ride-sharing is a viable option. Nowadays people take that for granted, and that’s a valid mode of transportation."