Report Summary: The Impact of Free-Floating Carsharing on Car Ownership

free-floating carsharing
Categories

In review of the latest research report by Scott LeVine, we felt compelled to share the most impactful findings with you in a summarized article. The report entitled The Impact of Free-Floating Carsharing on Car Ownership provides many insightful details of the changing industry of shared mobility, and the subsequent decreasing demands of car ownership.

The Impact of Free-Floating Carsharing on Car Ownership

What is free-floating carsharing? Before we go any further, let’s define the term “free-floating.” Free-floating carsharing (FFCS) refers to a carshare program that is not roundtrip, or in other words, one which can be used for point A-B trips. Because the member is not required to return the vehicle to where they picked it up, the trips tend to be much shorter and much more convenient for errand running or just getting from point A to B in your day-to-day life.

Free-floating carsharing services are found in several dozen cities of high-income countries, and are now beginning to appear in middle-income societies. The objective of the research paper is to characterize the early-stage impacts of free-floating carshare on its users’ ownership of private cars, using data from the DriveNow FFCS service in London.

The Questionnaire distributed to subject of the study included questions like:

Which of the following statements most closely applies to you: Because of DriveNow….

  1. The number of cars I own didn’t change during the last three months.
  2. I decided not to buy a car during the last three months.
  3. I got rid of a car during the last three months
  4. I will get rid of my own car in the next few months

FREE-FLOATING CARSHARING ON CAR OWNERSHIP impact results:

  • 63% of FFCS users indicate that the introduction of the service did not affect their ownership of private cars
  • 37% of FFCS users reported impacts on their ownership of private cars:
    • 83% of those reporting any impacts indicated that during the three months prior to the survey, they did not purchase a car that they otherwise would have purchased
    • 11% of those reporting any impacts indicated that they disposed of a private car that they previously owned as a response to FFCS availability
    • 6% of those reporting any impacts) indicated that they plan to dispose of a private car during the three months following their survey participation

The Most Common Uses of Free-Floating Carshare

So if free-floating carsharing is indeed impacting car ownership, what are the most common uses of this form of shared mobility?

  • The most commonly usage of FFCS (attributing to 51%) was reported as: ‘in addition to other means of transport’ (ie. public transport).
  • The second most common use of FFCS was to visit friends/relatives (48%)
  • The third most common use case reported by FFCS users was to go shopping (40%)

What does this research tell us? While 63% of ReachNow users felt their FFCS membership didn’t impact their private car ownership, it’s possible that this may change with the growing comfort, availability, and convenience offered by free-floating car share programs. And of the 37% of users who felt an impact, we can only imagine this number will increase as well.

Interested in this report? Please contact us here or reach out to Scott LeVine.


Related Reading

Multimodal Mondays: Changing User Behaviour with Anna Bohn

Welcome to the August edition of the Multimodal Mondays micro-webinar series. This month Sandra is joined by Anna Bohn Co-Founder and Creative Director from Etho Studio where they discuss the ‘Lighter Footprint’ app that Anna is developing with BCIT and the best ways to change user behaviour.

Read More »

movmi Academy: Shared Mobility Architecture 101

Have you ever wondered what a Shared Mobility Architect does? Are you planning to launch a new Shared Mobility service and wonder if you should work with a Shared Mobility Architect? Perhaps you’ve considered becoming a Shared Mobility Architect yourself? movmi is about to launch movmi Academy’s first every e-learning course: Shared Mobility Architecture 101.

Read More »
subscription models

FINANCIAL FRIDAYS: THE BUSINESS OF SUBSCRIPTION

For the fourth session of our Financial Fridays series this year, movmi is joined by Ramu Nair, Head of Sales and Partnerships at INVERS, Sergio Acevedo, Director of Business Development at Launch Mobility and Kevin McLaughlin, CEO at Zygg e-bike Subscription. Over the last 18 months we have seen subscription as a business model gain a lot of traction across many modes and markets. In this webinar, the panel discusses what exactly makes this model so desirable to the user.

Read More »

E-Learning Course “Shared Mobility 101”  AVAILABLE NOW!