How can manufacturers deliver in the share economy?

Below are a few key tactics manufacturers can use to ensure the transition to car sharing services is as smooth and profitable as possible.

For more than 100 years, the automotive industry has adapted to new technologies, evolving customer expectations and demographic shifts. Now more than ever, manufacturers must continue to adjust their business models to succeed in today’s world as consumer preferences have changed and online companies like Amazon and Uber have cultivated an on-demand mindset. Car manufacturers are responding by offering new business models that focus on access opposed to ownership.

Sharing and Subscription

Several automotive manufacturers have announced plans to launch monthly subscription models, while others are entering the car sharing market. As an alternative to traditional leasing options that limit the consumer to one vehicle, a finite period of time and put the responsibility of maintenance and insurance on the drive, Jaguar Land Rover, BMW and other popular automotive manufacturers are investing in the new subscription model. This enables consumers to access a car for a monthly rate that also includes maintenance and insurance and presents the opportunity to fulfil the aspiration to drive a sports car for the commute and a people carrier for the weekend, for example.

By Gill Devine.

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