Ride Sharing Apps Won't Decrease Car Sales

 

Recently there has been a rise in online transportation companies like Uber and Lyft. Due to the easy access of smartphones, with one click of a button, people can have a ride to wherever they want. This can eliminate the problems of finding an empty taxi or having to worry about finding parking while driving.

Ride Sharing App

While these ride share companies have proved to be convenient and popular with citizens, many companies have taken issue to them. This is because places like Metro Detroit thrive on the business of car sales. Therefore automotive companies might see Uber and Lyft as a threat. More people taking Uber and Lyft means that people will be less inclined to lease or buy a car. However a couple of studies have recently seemed to disprove this notion

According to a study by Kelly Blue Book people use the ride sharing apps for various reasons. For some people it could be due to city living and the inconveniences of driving a car, while others were reported to only use the apps for their nightlife.That is why the study mainly determined that people that use Uber and Lyft were looking for an alternative to taxis or other public transportation. One way or another, they were not planning on using a car of their own to get to their destination. Moreover, the study determined that 74% of consumers surveyed said that driving is their preferred mode of transportation. 

Karl Brauer, senior analyst for Kelley Blue Book. said that, “While there are numerous benefits to ride sharing and car sharing, our data reveal that owning a car still reigns supreme, with reliability, safety and convenience all being major factors.”

Zipcar

In addition to companies like Uber and Lyft, which are essentially taxis in peoples' own cars, there are also other ride sharing companies. About 5.8 million people worldwide use services like Zipcar, Daimler’s car2go, and Turo. These companies allow car owners to rent out their vehicles to others. Instead of someone being chauffeured around, they can drive other peoples' cars to get to where they want. 

However, that doesn't mean the users of these type of companies don't necessarily want to buy a car either. The Kelley Blue Book did a survey on the habits of these users.

Kelley Blue Book Car Ride Sharing App Statistics

1. According to the survey 81% said that vehicle ownership is more reliable.

2. 76% of these users said that they plan to buy or lease their own vehicle within two years time.

3. 80% thought that owning their own car was safer.

All of this data shows that despite the boom of ride sharing apps, car companies don't need to worry about their sales being affected. Uber, Zipcar, and other ride sharing companies are alternates to public transportation, not to buying or leasing a car. The vast majority of their users are planning on getting a car of their own in the near future.


Having the opportunity to use Uber or Lyft might decrease someone’s chance of getting to a car accident. Nevertheless that doesn’t mean that accidents don't occur. Whether you are driving your own car or using someone else's’ car with Turo, there is always the possibility of a motor vehicle collision occurring. If you or somebody you know has been involved in an car accident of any kind, call the The Michigan Law Firm, PLLC at 844.4MI.FIRM for a free consultation.