The Effect Of Shared Mobility On The American Auto Industry

There are a number of issues facing the American auto industry. For this assignment, I've chosen to focus on the consumer's ever increasing shift toward "shared mobility" and it's effect on the industry. The idea of vehicle ownership is becoming less important to consumers and trending toward car and ride sharing. Think of ride sharing services, such as Lyft and Uber, or car sharing services like ZipCar. It is estimated that 1 out of every 10 vehicles will be a shared vehicle by 2030 (McKinsey, 2016). Now, more than ever before, access to inexpensive transportation is fast and easy. Ride sharing services, like Uber, allow consumers to request a ride from an app on their smart phones. And car sharing services, like ZipCar, allow consumers, via a membership, to rent a car for short periods of time, anytime, without the hassle of renting from traditional car rental agencies. These services are becoming very popular in densely populated urban areas where vehicle ownership is costly due to expensive limited parking, rising fuel costs, repairs, and insurance. This is changing the idea of vehicle ownership all together as more consumers opt for shared mobility options. Of course, shared mobility will always be less available in less populated areas where they would be considered impractical by consumers.

As mentioned earlier, by 2030 1 out of 10 new vehicles sold will be destined for a shared consumer purpose. Fewer consumers will purchase personal vehicles as these services become more and more readily available. Further, shared mobility services are used the most by younger consumers, those in the 18 - 24 age bracket. Unavoidably, the older generation that is more accustomed to vehicle ownership will eventually die off. Millennials and other younger generations already using shared mobility services will continue to do so in ever growing