Millennials Shift Strongly Toward Ride Sharing
Recent reports are showing a strong shift in the up-and-coming generation, away from car ownership and toward ride sharing. A striking 70% of millenials surveyed said they regularly use ride sharing services when going out with friends. Compared to the past generation which had 91% auto ownership, of today's younger drivers only 78% own or lease a vehicle.
On the surface it may just look like a savings plan, however this reason was only listed at #3 after short waiting times and overall efficiency of the experience. What services are most used by millenials? Unsurprisingly Uber came in at #1 with 97% brand recognition followed by Lyft at 75% and ZipCar at 42%.
At first the ride sharing trend was disrupting the taxi industry yet now it is effecting automotive and transportation as well. In response, automakers are coming out with more trendy and inexpensive vehicles, focusing on eco-friendly materials and high MPG ratings. So far this isn't bringing in sales from the younger markets, but only time will tell.
With hundreds of thousands of drivers working for services like Uber and millions of people using the service, the trend looks like it will only continue to grow. Many drivers are even ditching their taxi cabs to drive for these services. According to the Washington Post " Uber released internal data on Thursday arguing that drivers who use the app to give rides-for-hire in their personal cars are making more money as chauffeurs than professional taxi drivers do — as much as $17 an hour in the District and Los Angeles, $23 in San Francisco and $30 in New York. "
The availability of ride sharing has fueled another trend among teens, waiting to get a license. Less than 20 years ago over 90% of teens had their license before graduating high school. Today that number has been nearly halved. Mobility is far easier today than it ever has been and many don't see the need to learn how to drive on their own. Do you have a teen non-driver in your home? Share your experience on the E3 Facebook page.