Carsharing is a short-span car-hiring service that can reduce personal car ownership. The carsharing model was initially designed for short-distance travel but is now utilized for long-distance commute as well. The cost of fuel and insurance is typically covered in the membership fee, and the fare is calculated based on the distance travelled and time taken. Corporate adoption of carsharing services has witnessed an increase over the past few years due to the shift toward a nonownership model. Organizations can offset CO2 emissions as well as obtain tax and other benefits by adopting the service.
- Carsharing provides flexibility in mobility, and is gaining prominence among other mobility models in Europe.
- The fare is calculated based on the class of the vehicle availed, distance travelled, and time taken.
- Carsharing is not considered as an alternative to typical company cars. However, it can reduce the number of company-owned/leased cars.
- Carsharing supply base is witnessing an increase, owing to the need to reduce CO2 emissions and promote a shared mobility model.
Growth Drivers of Corporate Carsharing Services:
- Shift in ownership model is expected to drive carsharing adoption.
- Cost of availing carsharing is relatively low compared to ownership and car rental services.
- Increase in urban population has led to concerns regarding parking availability and traffic congestion.
- Regulatory issues with ride-hailing services in European countries like the UK and France have enhanced the adoption of carsharing service.