The Car Sharing to Mimic the Real Estate Market
Many people have turned their homes into the weekend and vacation getaway places for people to be able to enjoy the comfort of traveling around to enjoy a home in the area they need to travel to. This program has gained popularity and success and it’s called Airbnb Inc. Because of the success of this company and its program, the automotive industry is taking a look at how this could work with cars in the same way that it’s become successful for the Real Estate market.
Right now, there are a couple of ride-sharing programs that allow car owners to rent out their vehicles to people as a peer-to-peer program. Two that come to mind are Turo and Getaround and now GM is ready to experiment with this same scenario by adding car sharing and renting to their Maven program which has been a successful ride-sharing service. With plans that aren’t public yet, you could eventually schedule an Airbnb and a Maven during your visit to an area that you want to during vacation or for a weekend getaway. This new program could work well for hourly rentals or for longer term rentals.
What Could this Mean for Automotive Sales?
If you think about the different programs that have already grown in the automotive industry, we have ride sharing, ride-hailing, and traditional ownership programs as well. Those who are taking advantage of the traditional ownership programs have vehicles that sit without being driven for more hours per day that is spent behind the wheel. By taking this farther and offering the Maven program as a peer-to-peer ridesharing/rental program, you could be at work all day and your car could be driven by someone who needs it. This is a great way for you to make money and for the Maven program to also make more money for GM.
With the new programs that are being offered, traditional car sales may see a decline and with programs that resemble the Airbnb Inc. program in the Real Estate market, owners of vehicles and manufacturers can both find an alternative stream of income that can be earned with the use of the vehicle. This program is expected to be launched in the early part of the summer and the success of this program will determine whether or not Maven will continue to offer this service.
Right now, Maven does rent vehicles to individuals for daily driving and to those who work for Uber and Lyft, but these Maven vehicles are owned by GM. By allowing current owners to share in the revenue and build an income stream through the Maven program by renting out their vehicles, GM can expand this program and offer a service that’s different from traditional ride sharing or hailing services. It will be interesting to see the feedback from owners regarding the use of their vehicles during these rentals when the vehicle is returned, which can have a huge impact on the success of this program.