With more than 60 percent of the world’s population expected to live in cities by 2030, owning a car is becoming less of a necessity of life for a growing number of people and, in particular, younger generations. Instead, a new economic model of shared ownership has arisen and is beginning to take hold. As the chart shows, ride-sharing will gradually become more economically attractive than owning a car in less than a decade. By 2027 ride-sharing services are expected to become 17 percent less expensive per capita than owning a car and drop in cost by more than half.
Right now, it’s more of an urban phenomenon, but the economic benefits are soon expected to extend to rural areas with the advent of autonomous vehicles—another core technology defining the New Mobility. With that said, ride-sharing has its downsides in the form of added congestion in urban streets, as many cities are experiencing. It also competes with mass transit and as a result, some cities are trying to constrain its growth.
To learn more about the New Mobility, one of the biggest disruptors to the global economy, please click here.