North America Car Sharing Market size valued at USD 300 million in 2020 and is expected to witness growth of 19% from 2021 to 2027. The market growth is driven by the growing number of inbound and domestic travelers in North America.
Increasing number of air travelers are demanding high-quality and reliable travel services for their tours, positively impacting the car sharing market growth in North America. Several leading car sharing service providers are offering enhanced services and promoting their brands at numerous airports, aiding customers to adopt the car services.
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The growing popularity of car-sharing is enabling automakers to launch innovative services. For instance, in August 2020, Porsche launched a monthly Single-Vehicle Subscription (SVS) program in various U.S. cities. This program helped the company to target new consumers across the country, which are preferring private vehicles instead of public transport options due to health and safety concerns. As traditional vehicle ownership can result in heavy financial burden, the convenient monthly charges associated with automotive subscription services are predicted to drive the demand.
The COVID-19 pandemic negatively impacted the car sharing market as customers preferred private vehicles instead of public transport options due to health and safety concerns. Leading automotive manufacturers, such as Ford Motor Company and General Motors, reported a decline in their vehicle production and sales. The local transportation infrastructure witnessed uncertainties as disrupted supply chains and reduced demand for transportation affected the nation’s transportation industry. However, with the gradual reopening of economic activities, supportive government measures, along with rapid vaccine roll out in North America, the market is anticipated to observe steady growth.
North America Market, By Model
The Peer-to-Peer (P2P) car-sharing model is set to provide significant growth opportunities during the forecast period. Websites featuring P2P solutions provide a platform for car owners to make their vehicles available to be shared by other individuals at a previously specified rental amount. This solution provides cost savings and maximum utilization of the vehicle. The emergence of new P2P sharing platforms is propelling the car sharing industry for private applications.
Competitive Industry Landscape
The prominent companies involved in the North America car sharing market include Communauto Inc., Getaround, Inc., Hertz Global Holdings, Inc., Lyft Inc., Regina Car Share Co-operative, Turo, Inc., and Zipcar, Inc.
These companies are emphasizing on launching innovative car sharing solutions to cater to different customers’ demands and increase their market shares. For instance, in February 2021, Lyft, Inc. launched a new service of car rental booking through phone call for seniors having no access to the smartphone application. This initiative will assist the company to enrich its brand positioning among the senior customers.
In September 2021, Getaround, Inc. announced a new program, New Frontiers Bonus Programs to offer additional incentive to car owners for offering additional cars. The owner of a car can receive incentives up to USD 850 after providing their cars in eligible markets. The new strategy by the company will encourage car owners to provide their cars on rent through the company’s platform and will increase its revenue.