A recent study carried out by a car rental firm shows that most young people prefer having smartphones and transport apps to owning a car.
Additionally, many investors are pumping their money into car rental businesses by the day.
Besides, on-demand transport services are being launched in urban areas and near colleges at a very high rate.
Moreover, fleet operators too are also monitoring the technology and how it can be used to improve their operations and asset optimization. One such tech advancement is the Electronic logging device (ELD) or E-log for truckers that keeps track of drivers’ activities.
E-log device is an electronic device that makes it easier for commercial drivers and professional truck drivers to track their hour of service (HOS).
Slowly, daily rentals are taking over from the pay-per-minute transportation services that had dominated the transport industry for some time.
Clients can use their smartphones to request car and driver services. Besides, the app will help determine the shortest route to your destination alongside showing you the different options available.
Car sharing offers an entirely different experience than that of owning a personal car. Nonetheless, the question is how car sharing will provide similar suitability and versatility to that of a private vehicle.
In towns and urban areas, owning a car can be costly, to say the least. Things such as parking fees, insurance coverage, maintenance and depreciation are increasing by the day.
Additionally, the responsibilities that come with a private car, such as car washing are not appealing.
Many commuters prefer using public transport services because it gives passengers the chance to read, plan their day’s tasks and even socialize while traveling.
However, according to one report, slight distractions to the driver pose a considerable risk of causing a road car accident.
Car rentals provide customers with a completer and more flexible package. To meet the clients’ needs, on-demand transport and rental services offer different types of vehicles with an option of pickup stations.
Additionally, clients have the choice of renting a car for the long-term or short-term with insurance and pricing plans included.
Round trip carsharing is mainly used for brief periods like an average of five hours. This mode of carsharing is mainly used when running errands such as attending meetings, buying groceries or picking somebody up from the airport in situations where traveling back in the same vehicle is essential.
The one-way trip, also known as point-to-point on-demand transport trips are generally shorter in both time and distance. Point-to-point trips are favored when you are traveling to visit your friends in instances when you can take a one-way ride.
For the return journey, you can call a taxi, use public transport or even request a different one-way shared car. This is more convenient than paying parking fees for the rented vehicle while you are at your friend’s place.
The Success of Car-Sharing Businesses
The success of car-sharing systems relies very significantly on where the cars are parked. For it to be successful, the vehicle must be in a location where it can easily be accessed by a customer when requested.
Car-sharing owners need to have a network of parking spots well distributed in areas where their customer demand is high.
The magnitude of the current car rental business is still small, but with technology and customer preference, the future of on-demand transport is bright.