While the initial investment to start a car-sharing operation is steep (~15 million euros per city), the car industry is getting involved in droves.
This struggle to find the next big thing is driving a fierce competition. Nonetheless, the industry has been competing for decades. Larger models, better consumption, powerful engines, aerodynamic designs, etc.
Be Smart: Competition in the car-sharing space is very different from that of the car industry. We’re going from an ownership model to a service one. Barriers of entry in one and the other are utterly different.
Failing to see this difference will be the downfall of most competitors. A glance at the current offerings shows how misguided most are.
Because users don’t own the car, the number one feature for them is availability, not style. Other features are secondary. Users don’t care about the car model. They care that when they pick the car, they can reach their destination without incidents. All features are subordinated to one big goal, maximum availability.
If a company isn’t available in my area or at a particular time, I’ll switch to another brand. The cost of switching is close to zero; brand loyalty is non-existent.