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Shared Travel: Revolution or Evolution?

The Fuels Institute

Executive Summary: Insight Into Business Strategy Context

This report connects fleet and customer analysis. While the customer demographic data represents general locations and not the actual customers, the combination reveals valuable insights because all of the car-sharing companies must make strategic and tactical choices in where to locate, and therefore must assess the characteristics of those markets.

In that light, strategic insights emerge from connecting the dots:

  1. Car-sharing is a real-estate game. 
  2. Car-sharing goes after the low-hanging fruit and locates in areas with smaller households, fewer vehicles per household, higher income and more education. 
  3. Car-sharing is a downtown phenomenon. 
  4. Turo, the peer-to-peer rental company, appears to have a model that is fundamentally different on some measures than car-sharing. 
  5. Both car-sharing and peer-to-peer gravitate toward the largest metropolitan areas — those with a population of 1 million or more. 
  6. Another commonality is that car-sharing and peer-to-peer companies contain nontrivial inventories of alternative vehicles in their fleets. 
  7. The market introduction challenges of electric vehicles (EVs) cannot be magically overcome by car-sharing; the car-sharing fleets are not dominated by EVs. 

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