The Future of the Industry: Rideshares

Rideshare services like Lyft and Uber have dominated the discussion around the transportation industry ever since they first came into popularity in a few years ago. Many wonder how they will impact car sales and services and, while outcome opinions vary, almost everyone can agree: there will be changes.

What do the reports say?

According to a study conducted by Kelley Blue Book, there hasn’t been a measurable change in car sales since the introduction of ride sharing services. As a matter of fact, when asked their opinion on the reliability, safety, and convenience of rideshares, an average of 80% of consumers prefer car ownership. One of the few surveys suggesting a decrease in sales cites only public attitude as reason for concern, but does not back with any real sales statistics. It appears as though the rideshare industry has merely replaced the taxi industry, especially since rideshares are most prevalent in larger cities.

Could rideshares benefit automotive retail?

More Lyft/Uber drivers mean a higher demand for newer car models. Luxury incentives like Uber Black or Lyft Premier which pays drivers more for offering rides in luxury vehicles may be an added boost to luxury car sales. Additionally, the rideshare boom is an opportunity for dealerships to cater their leasing programs to potential rideshare drivers- extending the max milage or offering trade for new lease when nearing the mileage limit. Car manufactures are already exploring ways to increase sales by catering the driver/car share community. For instance, BMW is planning to offer a optional smartphone key equipment packages for its Mini brand for customers who want to use car sharing programs.

Rideshares are projected to become a more dominant form of transportation in the next 15-20 years, but that just might mean a higher demand for newer, nicer cars.

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