Are Ride Hailing & Carpooling Are Revolutionizing Car Consumption
- October 6, 2023
Ride-hailing, also known as ride-sharing, is a transportation service that associates passengers with drivers via a mobile app or an online platform. This industry has grown significantly in recent years, revolutionizing the way people book and use transportation services.
A ride-hailing or ride-sharing is a technology platform that connects people who need ride service with drivers who provide ride services through an app or website.
When Car-Sharing and Carpooling Are Revolutionizing Car Consumption
People have a relationship with the car that is not quite the same as it was a few years ago. Car pooling and car sharing are revolutionizing the way people use cars and are seen as practices that are both economical and more respectful of the environment. Let’s find out how our relationship with the car has changed.
. What is the relationship of the People to the automobile?
. What is carpooling?
. What is car sharing?
. Carsharing or carpooling: what are the differences?
What Is The Relationship of The People To The Automobile?
Lifestyles are changing and the lots of people no longer have the same relationship to cars as they did one or two decades ago. Alternative modes of transport are developing in order to offer solutions capable of truly meeting the expectations of people who need mobility. Carpooling and car sharing are two fashionable practices that meet a real need but whose operation is totally different.
A study was done by Ford last year. And this clearly marks the change of vision of the European people in relation to the automobile. From this survey emerges the notion of sharing. 63% of respondents think they will use carpooling in the near future. And the proportion increases very significantly among the youngest since 73% of 18-24 year olds are considering such a solution.
Rental between individuals also has a bright future ahead of it. In fact, 53% of people surveyed and 62% of the youngest are interested in this solution. 70% of them are even waiting for the development of an application capable of offering them the best solution for getting around.
Naturally, we can imagine that, for some, such a change in relation to the automobile is linked to the environment. But that’s not the main reason. Young people see it as an economic solution. Indeed, 60% of 18-24 year olds who have already opted for carpooling have done so to save money on their journey. Better still, 65% of respondents are ready to make their journeys profitable by delivering parcels on their way.
If, today, the car is still considered by some as an object of pleasure and freedom, many people want to combine this pleasure with the economic aspect to reduce their expenses. However, Passenger cars have emerged as the primary means of family transportation, with an estimated 1.4 billion in operation worldwide.
What Is Carpooling?
Carpooling is the practice of sharing one’s vehicle or that of another driver. This solution is preferred mainly in two situations: the home-work journey and the journey for a weekend or vacation. The authorities considered it essential to ensure that individuals learn to share their car in order to preserve the environment and to increase announcements and the creation of carpooling areas.
Carpooling in Figures
According to Allianz, 57% of drivers take their vehicle almost every day to get to work. However, among them, the number of people who have opted for carpooling is still very low. Only 36% of respondents would be interested in carpooling as part of a home-to-work journey. On the other hand, 56% of them could be tempted by carpooling over long distances. 69% offer carpooling at least once a year.
Carpooling to Reduce Expenses
From an economic point of view, carpooling is particularly interesting. Still according to Allianz, the 57% of drivers who use their vehicle daily to go to work could save between 500 and 2,000 euros per year, substantial sums that give food for thought. Gasoline, tolls, wear and tear on the car, if you add it all up, the gain is indeed substantial.
What Is Car Sharing?
This is a practice aimed at sharing a fleet of vehicles. This time, the drivers do not own their car; they only want to be able to use a vehicle freely from time to time. Unlike traditional car rental, car sharing provides 24/7 access to a vehicle through apps. No need to maintain your vehicle, the fleet manager takes care of everything and includes this service in the rental price.
Carsharing in Figures
To date, it is considered that, depending on the use, a shared car replaces between 6 and 8 private cars and frees up 4 parking spaces, the concept being to only have a car when you really need it. If this avoids manufacturing 6 to 8 cars, this saves 36 tons of CO2 over 10 years.
According to a new study done by IoT analyst company Berg Insight, according to them, the users of carsharing services numbers worldwide is estimated to grow from 71.9 million people in 2020 at a multiple annual growth rate (CAGR) of 21.5 percent to reach 190.3 million people in 2025. And this will concern both individuals and professionals.
Car Sharing or Carpooling: What are the Differences?
Carpooling is a practice of sharing a vehicle, like car sharing. The major difference is that the owner and the user are both in the same vehicle. Carpooling is sharing not just a car but a journey. It is practiced in the context of daily journeys, but also in the context of long journeys, to go on vacation, to go to an appointment, etc. Carpooling makes it possible to share the costs of the road, whether it is gas or the toll, if applicable. This practice has an economic, ecological, but also human vocation. Indeed, it allows you to meet people from all walks of life and share a moment together. Admittedly, carpooling is not always a success, but it can allow, why not, widening your circle of friends.
Another major difference and not least is the price. In fact, car sharing consists of renting a car, either from an individual or from a company. In this case, it is therefore natural that you make a payment for this service. On the other hand, carpooling, if it authorizes the sharing of costs, it totally prohibits making a profit. The owner of the car must set a price that must have the price of petrol, the toll, or even the price defined by the mileage scale updated each year and which considers the wear and tear of the vehicle. Beyond cost sharing, the drivers are illegal. Actions have also been taken to court, in particular against a person who had a minibus and was transporting people, asking them for compensation. It turned out that his approach was unfair competition with public transport companies.
Finally, carpooling, if it allows sharing a real human experience, it leaves less freedom than car sharing. If you need to go somewhere and you opt for carpooling, you depend on the driver and the schedules that have been set. Imagine that you are working from home and that, for a day, you have to move around your company. What will you do if you are in a meeting and you finish later than expected? In the context of carpooling for a home-work journey, you have to be sure to always finish at the same time; otherwise it complicates the process for the driver and the passengers.
Naturally one can ask the question of how car insurance works in the context of car sharing and carpooling. In the second case, the driver must simply be insured for his home-work journeys if he carpools in this context. The civil liability guarantee contained in its insurance covers the damage caused to its passengers.
In the context of car sharing, if you go to a company that has a fleet of vehicles, it is the company that takes care of the car insurance, this will be included in the price that you pay in the same way as the maintenance of the vehicle.
In the context of car-sharing between individuals, it is the vehicle owner’s insurance contract that pays for any claims. Be careful however, it is important to stipulate that you practice car sharing so that your insurance can offer you a “loan of the wheel” guarantee for occasional drivers.