There are several emerging business models that combine elements of both vehicle subscription and car sharing. These models aim to provide consumers with increased flexibility and convenience, while also minimizing costs and reducing the environmental impact of transportation by increasing individual vehicle utilisation.
It's true that vehicles for personal use typically spend the majority of their time parked. According to a study by the Federal Highway Administration, the average car is driven just 4% of the time, which means it spends the other 96% of the time parked and unused.
This statistic highlights the inefficiency and underutilization of personal vehicles, and has led to the emergence of new transportation models such as car sharing and vehicle subscription services. By allowing multiple people to share a single vehicle, these models can help to reduce the overall number of vehicles on the road, and increase the utilization and efficiency of each individual vehicle.
Nesting Car Sharing Within Car Subscription
Under this model, a customer who subscribes to a vehicle would have the option to make that vehicle available for on-demand use within a car-sharing pool during periods when they are not using it themselves.
By allowing others to use the vehicle during these times, the subscriber could potentially offset some of the cost of their subscription, and also contribute to the overall efficiency and sustainability of the transportation system. This approach could be particularly beneficial for individuals who do not need to use their vehicle full-time, or who have access to alternative transportation options for certain periods of time.
Compounding Revenue Opportunity
By allowing subscribers to make their vehicles available for on-demand use within a car-sharing pool, a provider could potentially generate additional revenue from the same vehicle, beyond the subscription fee paid by the subscriber.
In this scenario, the provider could share a portion of the revenue generated from car-sharing usage with the subscriber, as an incentive for them to make their vehicle available for sharing. This revenue sharing arrangement could help to further offset the cost of subscription for the subscriber, and could also encourage more subscribers to participate in the car-sharing pool.
Of course, the specifics of the revenue sharing arrangement would need to be carefully negotiated and structured to ensure that both the provider and the subscriber feel that they are receiving fair value for their participation. The provider would need to consider factors such as the cost of maintaining and operating the vehicle, the demand for car-sharing usage in the local market, and the willingness of subscribers to participate in the program. Overall, however, this approach could be a win-win for both the provider and the subscriber, by increasing the utilization of vehicles and generating additional revenue for both parties.