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As drivers become less and less able to afford their own cars, complete with the costs of insurance, maintenance, and repairs, car sharing is growing in popularity.
There are two types of car sharing companies currently operating in the United States. The first, which includes CityCarShare and Zipcar, uses fleet vehicles that are owned by the company itself and are rented out to customers on either an hourly or daily basis. The second type, which includes RelayRides, actually uses personal cars. The owner of the car earns money by lending their car to people in their area on an hourly or daily basis.
The peer-to-peer car sharing company RelayRides has also recently announced a partnership with car manufacturer GM. The partnership will allow cars rented out by personal owners to be unlocked using the vehicle’s OnStar technology using a mobile phone application. Currently, RelayRides uses their own communications device in vehicles available for car sharing, and the company is also working on an application for cars not manufactured by GM.
RelayRides asserts that the partnership with GM will be more convenient for owners of vehicles with OnStar because they will not have to wait for the company to come out and install their own communications device into the vehicle. The technology emphasizes the car sharing company’s focus on the security of personal vehicles offered for rent through the company website.
Car manufacturers have mixed feelings about both types of car sharing companies. Although car sharing has not yet become mainstream, it is gaining enough popularity to noticeably reduce car sales in big cities. While car manufacturers tend to be bitter about the loss of sales caused by car sharing, there is a benefit: car sharing allows young professionals in big cities to test drive cars that they would have otherwise passed over. Once these individuals can afford their own vehicle, car manufacturers reap the benefits of car sharing.
Although the car sharing movement hasn’t become mainstream, it is clear that those who cannot afford their own car, or who do not want to add to the environmental impact of personal vehicles, but need a car are becoming more interested in the concept of either renting a fleet car from a company, or sharing a vehicle with their neighbor.
