Ride-Sharing’s Rise Need Not Bode Poorly for New Car Purchases, Says Report
The rise of Uber and other ride-sharing options for consumers doesn’t necessarily bode poorly for future vehicle purchase intentions of current vehicle owners, Strategy Analytics said in a Monday report. Ride-sharing usage actually increases the likelihood that current vehicle owners…
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will buy another vehicle in the next five years, the report said. It said frequent ride-sharing users who also own their own vehicle “had greater transportation needs” than those who don’t: “Ridesharing fills a niche that is convenient but will not supplant their personal vehicle.” On the other hand, millennials with no children who use ride-sharing services at least once a week are less likely to buy another vehicle in the next five years than parents as a whole, the report said. “The question of how emerging transportation options like ridesharing and car-sharing will impact vehicle sales is a very complex one to answer. Issues of cost, convenience, usability, privacy, type of journey, and length of journey all impact transportation choices,” it said. “Frequent ridesharing users do not seem likely to delay their next vehicle purchase, but it is still possible that they might choose a less expensive or lower class vehicle. Alternatively, they may choose to downsize their fleet from three vehicles to two.”