As car ownership continues to decline among Millennials, it’s creating a booming market for companies in the ride sharing business. That’s because despite not owning a vehicle, young people still need to get around town—it’s just that the way they get around town is changing.
Rather than spend thousands of dollars on a car, Millennials are opting for cheaper modes of transportation such as public transit and Uber. But there’s a newcomer to the playing field, and it’s slowly increasing its share of the market.
Car2Go, a German company founded in 2008, is definitely worth keeping an eye on. It’s already breached international waters, with services being offered throughout Europe and North America.
So what’s the appeal of using Car2Go as opposed to other ride sharing services like Uber or Lyft?
Perhaps the biggest perk is that it allows the costumer to do the driving. In fact, Car2Go is being described as a car sharing service as opposed to a ride sharing service like Uber and Lyft. That’s the key differentiator.
But there’s another neat factor: Car2Go vehicles are located throughout large metropolitan areas. Using the Car2Go app, all the customer needs to do is jump in and drive to their destination. Returning the car to its original location is not required.
Another cool perk? The customer never has to refuel the car.
Pricing is charged on a per-minute/per-hour basis. There’s also a one-time sign-up fee along with a $1 insurance fee for the first 91 rides.
So exactly how popular is the service? According to Market Watch, Car2Go trips increased by 21% from 2015 to 2016. What’s more is that memberships have risen by 43% to 2.2 million.
What this data shows is that the popularity of car sharing services is only going to increase as time goes on. That’s why it’s a good investment for those looking to capitalize on the ride sharing/car sharing market.