2023-11-26 08:03:59
The car remains the most common mode of transport in the EU for frequent trips. On average, about 20 kilometers are covered in about 20 minutes. And although they have capacity for four or five seats, most of the cars are highly unoccupied (1.7 people per car). For this reason, cities are increasingly betting on shared mobility systems, which is facilitating the emergence of many startups related to this movement.
Others try to respond to other problems that the automotive sector is encountering. On the one hand, the fact that there is more emphasis on renting than buying, especially taking into account the high price at which new vehicles come from the dealership. Something that also leads to an increase in purchases of used cars, which is being taken advantage of by entrepreneurial gold.
A growing sector
The European shared mobility market today has an estimated value of around 70 billion euros and it is expected that by 2030 spending on shared mobility will reach between 150 billion and 200 billion euros. Among the main factors driving the adoption of this type of mobility are the greater willingness of consumers to use shared modes, the regulatory push for people to abandon ownership and the use of private vehicles in favor of other alternative mobility options and the introduction of shared autonomous mobility.
Advances in smart technologies such as mobile phones, mobile web applications and social media, combined with socio-demographic changes, have facilitated the shift to mobility as a service, with a shift from “owning” to “using” means of transport. In 2018, the European car sharing fleet was approximately 370,000 vehicles (0.1% of all passenger cars). Although the pandemic also caused this sector to slow down, sustainable mobility has been placed on the agenda and car sharing has led to a reduction in new car sales, especially among the younger generations.
Second hand
The second hand has also entered the scene in this sense. Revel, a startup that focuses on second-hand vehicle subscription, recently closed a round of 115 million euros. «Despite the great evolution of the market during the last 30 years, the way of purchasing a car and the entire subsequent experience of owning a car had hardly changed, and people continued to buy this product in the same way that our grandparents did.» explains Enrique de Matero, CEO of Revel, who also alludes to the change in mentality whereby people are more likely to hire services rather than buy them. For those who need a car for their daily life and are considering the traditional purchase of a vehicle, “we offer a much better way to have a car, with everything included in a monthly payment, without the client having to decapitalize large amounts, “do not have to go into debt through high-interest loans, nor do you have to be tied to long-term contracts,” he emphasizes.
Amovens is another of the startups that offer second-hand vehicle rental on a subscription basis, although in this case it is between individuals. «Car rental between individuals has been gaining popularity in recent years and especially among new generations. Fortunately, there is increasing awareness of caring for the environment, of promoting a more collaborative economy and minimizing the environmental impact, and new generations do not feel the need to own material goods and prefer flexible, low-cost and more sustainable alternatives such as “Amovens,” says its CEO, Alberto Bajjali, who defends that this model does not understand age.
Although the rental is between individuals, it can work like traditional car sharing, in which the car is opened with an app. To do this, a device is installed free of charge that allows each car to be rented without having to physically stay at the delivery and return. The car becomes a Smart-car. In addition to opening and closing the doors remotely, it is possible to know where you are parked, what your fuel level is, etc. Users will be able to open and close the car with the app, allowing them to sign more rentals and, therefore, more income, without having to leave their home or office. In addition, people who need to use a car are allowed to do so while it is not being used,” he explains.
Buy with guarantee
Other entrepreneurs have seen their opportunity in the sale of second-hand cars. Thus, Marta Sol, co-founder and CEO of Need Car Help, explains that the inspection service for the second-hand car that you want to buy emerged as a personal need four years ago. She felt “totally alone” in a “very opaque world” when having to buy a vehicle. A friend of hers helped her understand what things she needed to look at at that moment and they set out to create a professional service. She assures that they are capable of offering an expert report that allows “the detection of all types of fraud and adjustments, such as mileage fraud, hidden defects, serious structural damage, etc.”
A service similar to the one they also offer from Carfax. «We are not in charge of supervising the vehicles, as a mechanical workshop could do, but we provide clients with the history of the car through its license plate or chassis number, providing them with real data about the vehicle so that they can make a decision. informed purchasing process,” details its business development manager, Francisco Rudilla.
To do this, they rely on “more than 112,000 sources in Europe and the United States, such as governments, vehicle repair shops and other actors in the sector that can provide verifiable information.” This information constitutes the report that “the user obtains when entering the registration or chassis number”, which “can help when deciding to purchase.”
Sustainability and urban congestion
Increasing awareness about sustainability and the need to reduce carbon emissions, as well as increasing urbanization and traffic congestion in many metropolitan areas, along with new people’s needs, are some of the reasons why There is a boom in the number of startups linked to mobility. A series of circumstances that, as Paloma Martín, co-founder of Hoop Carpool, recognizes, “have also generated the demand for more flexible and efficient mobility solutions.”
If we add to this the technological advances that have occurred, the result is the creation of “opportunities for the development of new mobility solutions.” These technologies not only improve operational efficiency, they offer more personalized and secure user experiences.
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