Although car ownership has been on the rise for decades, with an average year-over-year increase in vehicle registrations in the U.S. of 1 percent, many factors make the future of car ownership uncertain.
For example, rideshare services, the rise of work-from-home arrangements, increased availability of public transportation, and the promise of self-driving cars may affect personal car ownership in the future. Not to mention the effects of rising fuel prices, high costs of living, economic woes, and supply chain shortages.
According to Automotive World, a new trend may be Mobility as a Service (Maas). Instead of owning cars outright, people would depend on the following services:
- Car rental subscriptions like Zipcar
- Peer-to-peer sharing services like Getaround and Turo
- On-demand car-sharing
- Car clubs11
Similarly, the think tank RethinkX believes that by 2030, once the U.S. government has approved autonomous vehicles (AVs), 95 percent of U.S. passenger miles will be traveled using on-demand AVs. They also predict that fleets, not individuals, will own these AVs.
RethinkX calls this new business model Transport as a Service, or TaaS, and believes it will save the average U.S. family $5,600 annually in transportation costs, equal to a 10 percent wage increase. Compared to buying a new car, TaaS will be four to 10 times cheaper per mile, or two to four times cheaper than the cost of buying a used car in 2021.12