The report examined consumer research across 16 markets in Europe and Asia, and it has revealed that reports of the “death of the car” are exaggerated.
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The car’s popularity will stay strong in the upcoming mobility shift, but attitudes toward ownership will change significantly, according to a new Avis Budget Group report. “The Road Ahead: The Future of Mobility Report” reveals that over the next decade, consumers are likely to move to an access-driven, on-demand model for their mode of transportation.
The report examined consumer research across 16 markets in Europe and Asia, and it has revealed that reports of the “death of the car” are exaggerated.
Today, 82% of respondents said owning a car was still important, 77% report that they own a car outright, and nearly 50% still see the car as their “ideal” mode of transport. However, this is set to change with more than two-thirds (68%) of people saying that outright car ownership will not be the most popular way to access a car within the next decade. Over half (54%) said they are prepared to give up car ownership and rely on long-term rental, on-demand, or subscription services.
In fact, 59% of those surveyed said they expect more subscription and on-demand services for cars and vans over the next few years.
“Driven by technology advancements and the influence of services like Amazon, Netflix, and Spotify, people today want to consume and access products and services at the click of a button,” said Keith Rankin, president, International, Avis Budget Group. “The expectation for an on-demand service has impacted the mobility industry and resulted in the evolution we’re seeing today – from being able to book a taxi instantly to hiring a car for a week-long holiday, all from your smartphone. However, our report reveals that we are now seeing a rise in this demand for instant access and flexibility, resulting in changing behaviors towards car ownership.
“Changing needs and the expansion of the sharing economy offer both challenges and opportunities for the mobility industry. Our research has shown that whilst consumers are expectant of connected, integrated and on-demand services, they still want convenience at a reasonable price.
“It’s imperative that different mobility players work together to ensure the future needs of consumers are met,” continued Rankin. “We have demonstrated the success of collaboration, as shown with our fleet management as a service (FMaaS) partnerships with Via and Lyft, and our agreements with Ford and Continental in providing connected cars. Our partnerships demonstrate well how the sector can work together to provide the on-demand and connected services that customers want. These can range from a technology giant delivering 5G, or local governments working with the private sector for improved, urban EV access for residents.”
This report examined the current and near future mobility landscape across markets in Europe and Asia.