How is the carsharing industry doing?

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Puneet Shah
Noida Sector 2
UP 201301 

Carsharing is used by huge numbers of people in major urban areas. Many customers find it difficult to own a car, so they use car-sharing services to save money, create good use of the cars, and enjoy more perks. By 2050, the UN estimates that there will be at least 2.5 billion additional people living in cities throughout the world.

Carsharing has several uses, but many people are still unaware of this despite its rising popularity. The general public is aware of how traditional carsharing operates: a person uses their vehicle to travel from point A to point B. In addition, car sharing is a form of car rental service that enables customers to rent vehicles parked at a variety of convenient places across the city for a certain period and only pay for the time they use the vehicle.

Carsharing services operate entirely online, and every transaction—from signing up to making a reservation to paying—takes place through a mobile app. Today, 5 billion people utilize the internet worldwide, which is comparable to about 64% of the world’s population.

The number of internet users also continues to rise, with the most recent data showing that the number of people connected worldwide increased by around 202 million in the year leading up to April 2022. Therefore, the global carsharing market is expected to grow at a significant rate in the coming years.

Globally, the Asia-Pacific (APAC) region led the carsharing market in the recent past, wherein China was the dominant user of such shared mobility services. The dominance of China can be attributed to the massive support being offered by the government for carsharing platforms, in terms of policies and incentives, and largescale incorporation of EVs in shared mobility fleets in the country. For instance, Beijing Shouqi Group, a state-owned carsharing service provider, offers its services in Xiamen, Beijing, Shanghai, and Qingdao through its Gofun Chuxing app.

Furthermore, to reduce the negative effects of pollution on the environment, carsharing services have been seen as an efficient remedy. The quantity of carbon dioxide released into the atmosphere would be reduced through increased usage of carsharing services, which would help decrease the number of private automobiles on the road.