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In the fast-growing sharing economy, many entrepreneurs are wondering how promising this business model is and whether it can make money. This is especially true for rental business owners, who, more than anyone else, feel the competition from the transport sharing services. In this article, we will attempt to determine which leasing system is more efficient from a business perspective.
By 2022, the total volume of the transportation sharing market is estimated to be $150 billion, where 90% is the online taxi services segment. Despite the fact that taxis dominate the market by a wide margin, since 2019, the most popular growth has been picked up by micro-mobility sharing services. While in 2017 customers made 1 million trips a year, in 2019 the number has already exceeded 160 million. According to experts, the explosive growth of the micro-mobility market is a logical response to the transportation and logistics problems of modern cities with lots of traffic jams, lack of parking spaces and poor ecology. McKinsey analysts estimate that by 2030, the segment will cross $300 – $500 billion, which is 2 – 3 times higher than the current estimate for the online taxi segment.
In addition to the steady growth of consumer demand, the micro-mobility sharing market is of interest to investors for the following reasons:
Despite the many benefits, there are a few disadvantages to the business model:
Let’s move on to traditional rentals. According to experts, the transport rental market is estimated at $100 billion, where over 80% is represented by the automobile segment. Due to the constant trend of abandoning your own transportation, the market grows by 10% per year, which is considerably lower than the sharing numbers. Despite the growth, the industry is heavily affected by the effects of the pandemic, as tourists and business travelers are no longer on the road, and as a result, many market leaders have significantly reduced their transport fleets.
This type of business is interesting for entrepreneurs, primarily due to the following advantages:
Referring to disadvantages, we can point out the following:
After analyzing all the advantages and disadvantages, you can choose the best business model for your rental by assessing your current ambitions and financial capabilities.
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