Study Says Car Share Services Reducing U.S. Vehicle Sales AIN Media Editorial Input: Note that this research in 10 major U.S. Cities indicates that as many as 500,000 new cars sales could be avoided by consumers using car sharing services.

New Research Study: An estimated 1.2 million new car sales will be missed because of the rise in car sharing. A new research study by AlixPartners suggest that for each new shared vehicle an estimated 32 personal vehicle purchases are avoided in the United States. Study Results: The results of the study are more than double the rate of many studies that have focused only on national averages. According to the AlixPartners study, approximately 500,000 vehicle purchases nationally have been avoided due to car sharing to date. In addition, the study suggests that as car sharing grows in popularity, it could account for approximately 1.2 million more purchases avoided through 2020. Geo Coverage of the Study: The 10 key car-sharing markets covered in the first part of the AlixPartners survey were Austin, Texas; Boston; Chicago; Miami; New York; Portland, Ore.; San Diego; San Francisco-Oakland; Seattle; and Washington, D.C. What is going on with car sharing? Respondents in the 10 key markets picked ease of access, convenience and economics as key reasons for car sharing. Environmentalism, often regarded as a chief motivator for car sharing, was last among reasons selected (out of five possibilities). Meanwhile, 51 percent said they have avoided vehicle purchases due to car sharing and 45 percent indicated that they expect to avoid a future purchase. More Survey Data: The survey also revealed that avoidance of personal-vehicle purchase is highest among younger consumers and, perhaps somewhat surprisingly, households with children – both possible harbingers for the auto industry. Input from Alix Partners’ Management: “We focused on the markets where car-sharing services have achieved a degree of scale,” said Mark Wakefield, managing director at Alix Partners and leader of the firm’s Automotive Practice in North America. “Our study suggests that Americans’ willingness to avoid vehicle purchases due to growing carsharing options is higher than many have thought, further suggesting that the auto industry ignores or minimizes this trend at its peril. “ “Car sharing could really get traction as smartphone and automated-vehicle technologies pave the way for new mobility systems throughout America and much of the world,” said Wakefield. “In the future, automated and, especially, driverless cars could be the killer apps for car sharing. What is going on in the Industry? The merger of Zipcar and Flexcar in 2007, and the recent advance by larger corporations -- including Avis (which bought Zipcar), Daimler, BMW and Enterprise into car sharing suggests that the industry is accelerating up an adoption S-curve, according to the study. Source: Alix Partners Release:

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