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Sharing economy here to stay; the future of car rental and the world

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Sharing economy here to stay; the future of car rental and the world

October 10
20:25 2018

The car rental industry is now the target of disruption. The traditional car rental industry, much like the airline industry, is long due for a complete overhaul. Zipcar, being one of the first to pioneer innovation in mobility, pushed forth the idea of applying the spirit of sharing economy into its business – building a fleet, spread over urban areas for easy access and rent. However, Zipcar’s model was a threat in the sense that they own the cars, and completely cut out any competitive opportunities for traditional car rental companies.

Companies like EXWYS and Turo, similarly to Zipcar, are also trying to innovate in the mobility space. However, the two allow individuals – as well as car rental companies – to upload their own vehicles onto the platform. This not only is a win-win and ideal situation, but also drives the traditional car rental industry to innovate – not through impairment but corporation.

EXWYS is also currently providing a free valet service for its service partners and customers, an industry-leading initiative. Right now, drivers can have a car they reserve through EXWYS delivered, for free, to any location. This not only supports small car rental business owners to provide service beyond their usual reach, save laboring costs, and receive the business they otherwise would not have. For renters, you no longer have to trek far and beyond to the outskirts of the city, or airports, just to pick up your dream car. All of your fees are listed clearly before you check out.

In recent years, some states began to challenge the freedom of peer-to-peer car rental services, with the political and economical backing of lobbyist groups serving the interest of large car rental companies. Illinois, being the latest state to do so, temporary vetoed a new bill that would regulate personal vehicle renters to pay taxes.

“Peer-to-peer car sharing is an innovative new service that simultaneously allows vehicle owners the freedom to realize additional income on an existing household asset, while also affording consumers a new service to meet their mobility needs,” said Illinois Governor Bruce Rauner.

According to Turo, there are over 264,000 Illinois residents have used their service, and average about $625 in extra earnings.

The sharing economy is here to stay, and the trend of the future. The sharing economy is a consolidation of scattered resources, being used to its fullest potential. To compartmentalize these resources, and distribute it to those who require it, not only prevents excess of production, but also, in terms of finances, helps the average consumer to save quite a lot – since he or she is paying for per usage, and not ownership.

The World Economic Forum predicts that by 2030, the concept ownership will be minimal – if not completely discarded. Experts have coined this imminent phenomenon as the “rentership society.” This particular trend is attributed by Millennials who, according to multiple studies, are less inclined to purchase things and pay for services at a higher cost, comparatively to the previous generation as the cost of ownership and services have skyrocketed in recent years.

Alexandrea Ravenelle, an assistant professor at New York’s Mercy College said that “Millennials are weighted down with student loans and not making a whole lot of money.” She also said the ubiquity of technology makes it possible for the thriving of the sharing economy model in particular fields.

Since 2010, over $23 billion in venture capital funding has been invested in rental companies such as Airbnb and Uber. PricewaterhouseCoopers estimated that by 2025, the global revenue of these sharing economy companies will be around $335 billion.

According to Rashi Mittal Nair, CEO of WOOP, “…the market is shifting from less B2C to more C2C. “Consumer is no longer a king that needs to be served, but a friend that needs to be helped…The brand-consumer relationship is democratized.”

EXWYS, along with its competitors, are steering the industry into the direction of the future and shared-prosperity. EXWYS is taking on the often-hefty marketing and advertising fees, and bringing the business to car owners – an ideal win-win situation for all. Last year, the city had a record high number of 62.8 million visitors. While most do not rent cars, the ones who did, chose familiar industry names like Enterprise and Hertz. EXWYS is helping to bridge small to medium sized car rental companies to a larger scale of exposure.

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