With the rise of Uber and alternate transport options for consumers, OEMs are rightfully concerned about the impact the increased usage of these options will have on consumers’ interest in purchasing future vehicles. A new report from the Automotive Connected Mobility (ACM) service at Strategy Analytics, “Impact of Ride Sharing Frequency on Vehicle Purchase Intention,” has found that ridesharing usage may not negatively impact the future vehicle purchase intention of current vehicle owners.
Key report findings include:
- Ridesharing usage actually increased the likelihood that current vehicle owners would purchase another vehicle within the next five years. This was true across the U.S., Europe and China.
- Frequent ridesharing users who also own their own vehicle had greater transportation needs than those that don’t. Ridesharing fills a niche that is convenient but will not supplant their personal vehicle.
- Millennials that had no children and used ridesharing at least once a week were less likely to purchase another vehicle within the next five years than all respondents who had children.
“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,” said Chris Schreiner, report author and director of syndicated research, User Experience Innovation Practice (UXIP) at Strategy Analytics. “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.”
Kevin Nolan, vice president of UXIP, added, “However, it is prudent to note that external factors such as ridesharing competition reducing end-user costs, expanded availability and autonomous taxis, all have the ability to negatively affect consumers’ future purchase decisions.”