According to the FT, carmakers are backing out of car-sharing ventures due to "rising costs and lack of customer interest". I've been lucky to see some amazing startups, great founders and brilliant ideas, but all that I guess is moot if there is insufficient customer interest!
The other killer comment from analyst Max Warburton in this article is that "'Mobility services' and 'car sharing' look like overhyped, lossmaking taxi hailing and car rental services...You could lose money in this for the next 20 or 30 years”.
As a consumer I feel car-sharing services are going to be essential. So I do firmly believe they will come whether it's now or 20-30 years. But my bet would be on three to five years, not 20 to 30.
Car companies reversing out of these services certainly is a blow, but also an opportunity for others to step into this space. Think InsurTechs such as Cuvva who could enable the existing vehicles to be insured easily and borrowed by friends and others.
Looking at adjacent data, the number of people applying for license continues to fall, so at some point this will find its home!
This is not IF, it's just WHEN for me.
'Mobility services' and 'car sharing' look like overhyped, lossmaking taxi hailing and car rental services,” he added. “You could lose money in this for the next 20 or 30 years”.