Car Sharing Voice of the Consumer Frost and Sullivan


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Frost & Sullivan Mobility Programme Manager, Mr. Martyn Briggs, and Programme Manager, Mr. Mohamed Mubarak, present latest findings from a customer research study on consumer profiles of members currently using car sharing services, including their preferences and aspirations for the car sharing concept in future. The idea of this voice of the consumer study was also to understand from non-members what would encourage them to join such new mobility services, as well as their idea of a ‘winning concept’. A targeted survey of over 2,300 people was conducted in a total of 12 cities in the UK (London, Manchester, Birmingham, and Edinburgh), France (Paris, Lyon, Marseille, and Toulouse), and Germany (Berlin, Munich, Hamburg, and Cologne). The study used the ‘Adaptive Choice Based Conjoint’ methodology that enables the possibility to create different simulations of car sharing models and generate the respective pricing and market share. The web conference will now give an overview regarding transport usage and commuting profiles, the customer’s / member’s perspective on the current and future usage of car sharing services and the willingness to pay for the service, existing car sharing member profiles, as well as familiarity, interest and adoption amongst non-members. The survey also illustrates that the market for P2P Car Sharing is still in its nascent stage and is expected to co-exist with traditional car sharing. The interest in using someone else's car is higher than the interest to providing own car to be used by others. Surprisingly, there exists a correlation between the interest in becoming a car sharing member and the interest in providing the own car to be used by others.

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Car Sharing Voice of the Consumer Frost and Sullivan

  1. 1. Car SharingCar Sharing –– The Voice of the Consumer &The Voice of the Consumer &Potential UsersPotential UsersIncreased Awareness of Car Sharing Concept Set to Increase UptakeMartyn Briggs,Program Manager, MobilityAutomotive & Transportation© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property ofFrost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.Mohamed Mubarak,Program Manager,Automotive & TransportationMay 14th, 2013
  2. 2. 2Today’s PresentersMohamed Mubarak Moosa,Program ManagerFrost & SullivanA Consultant with about 7+ years of experience instrategy consulting and research across Automotivesector. My current focus areas are related to trackingnext generation distributive business models &innovations, Mega Trends impacting Automotive sector,urban mobility, and the markets in emerging countries.Based in Istanbul, I currently manage the research andconsulting activities of Frost & Sullivan,Turkey.Martyn Briggs,Program ManagerFrost & SullivanExperienced Automotive & Transportation consultantand Project Manager, working with clients to implementgrowth strategies. My current working focus is relatedto Mobility, associated Mega Tends, and new mobilitybusiness models, considering the role of technologyand forecasting new market opportunities. I also leadour Mobility Research Programme Area; we publisharound 10 mobility studies annually focussing on topicssuch as mobility integration and Car Sharing.
  3. 3. 3Poll QuestionDo you think that Car Sharing should be integrated with a cities publictransport operations?A.Yes (Public Transport/Operator)B.No (Third Party)C.Don’t Know
  4. 4. 4Focus Points of Our Presentation Today1. Top 5 Key Findings from the Study2. Market for Traditional and Peer-to-peer Car Sharing Services3. Customer Awareness and Uptake4. Driver for Car Sharing and Impact on Car Ownership5. Impact of Car Sharing on other commuting modes6. Profile of existing and future Car Sharing members7. All inclusive business model8. Key Success Factors for Car Sharing Operator9. Peer-to-Peer Car Sharing and its relation with traditional Car Sharing10. Key Conclusion
  5. 5. 5Sample StructureSplit by CountryOVERALLSAMPLEFrance Germany United Kingdom2,348 745 839 764Split by City & SegmentOVERALLSAMPLECar Owners withannual mileage of<10,000kmCar Owners withannual mileage of>10,000kmNon-Car Ownerswith driver’slicenseParis 209 58 59 92Lyon 181 50 58 73Marseille 187 58 54 75Toulouse 168 54 50 64Total Sample France 745 220 221 304Berlin 197 60 62 75Munich 242 61 64 117Hamburg 190 55 55 80Cologne 210 56 62 92Total Sample Germany 839 232 243 364London 211 51 55 105Manchester 186 50 51 85Birmingham 181 50 52 79Edinburgh 186 55 50 81Total Sample United Kingdom 764 206 208 350
  6. 6. 6Top 5 Key FindingsCatch them Young: Well educated, office goers, youth (age group between 25 and34), and university students have shown the high level of interest in Car SharingCar Sharing has to co-exist with public transportationMore existing urban car owners to give-up ownership after joining Car SharingOne-way Car Sharing with the right pricing and operational model will be thewinning conceptGo back to basics of marketing – Familiarity to drive uptake rates
  7. 7. 7Market for Traditional Car Sharing Services - MembersTraditional Car Sharing in Europe is expected to reach nearly 15 million members by 2020 and more than67% of them will take round-trips; about 63.3% of them are expected to be personal customersNearly 0.7 MillionMembersNearly 15.0 MillionMembers40.5 %CAGR (2011-2020)+MembersMixNote: All figures are rounded; the base year is 2011*All Others include countries like Austria, Belgium, Italy, Netherlands, Switzerland, Spain, Sweden,Denmark, Finland, Ireland, Portugal and remaining countries in Europe including Turkey2011 2020One-WayRound-TripCorporatePersonal67.4%32.6%63.3%36.7%U.K.FranceGermanyOthers*U.K.FranceGermanyOthers*Market for Car Sharing: Traditional Car Sharing Members Mix Percent Based onCommute-Mode and Customer Profile, Europe, 2020Source: Frost & Sullivan analysis.Market for Car Sharing: Overview of Traditional Car Sharing Members, Europe, 2011 and 2020
  8. 8. 8France is the country where raising awareness will have the strongestimpactN= 2,038 (Car Sharing Services non members, who provided 1 to 5 rate for both questions)Q20. How would you rate your familiarity with the concept of Car Sharing services? (1 to 5 Rating Answer)Q25. How would you rate your current interest in becoming a member of a Car Sharing service in your city? (1 to 5 Rating Answer)n=2,038 n=632 n=703 n=703(5) Very interested(4) Somewhatinterested(3) Neither interestednor uninterested(2) Not interested(1) Not interestedat all21% 26% 30% 21% 3% 30% 26% 31% 12% 1% 14% 23% 34% 26% 3% 20% 27% 25% 24% 4%Level of Familiarity vs. Level of Interest in Car Sharing ServicesSource: Frost & Sullivan analysis.Promotional Impact onInterest Rate (*)62%Promotional Impact onInterest Rate (*)94%Promotional Impact onInterest Rate (*)59%Promotional Impact onInterest Rate (*)55%Note (*) : Interest rateincrease (%) from veryunfamiliar to veryfamiliar
  9. 9. 9From the respondents that referred knowing Car Sharing serviceproviders, the majority of them are aware of local providers.n=584 n=96 n=348 n=140(column %)• German respondents are the most knowledgeable in terms of local providers.N= 284 (German Non members of car sharing services that know Car Sharing service providers in their city)Q23. Of which of the following companies providing Car Sharing services in your city are you aware? (Multiple Responses)Type of Analysis: Frequency• So, even though 24% of our entire sample are aware of Car Sharing services, only 76% of them areaware of the companies providing the services in their city
  10. 10. 10Key Driver for Car Sharing is cost effectiveness, and the hassles ofcar ownership; both could impact future car ownershipCost effective alternative to privately owned carNo hassles of car ownershipMore convenient then using public transportEnvironmentally friendly way of transportTransparency of costsIt would fit my way of livingI always have problems finding parkingI don’t use my private car very frequentlyOthers• Cost effective alternative toprivately owned car• and the absence of hasslesof car ownership are the topreasons for Car SharingDecrease in Car Ownership• More than 40% of the Owners of 1vehicle likely to become members of aCar Sharing Service, consider thepossibility of selling/getting rid of thecurrent car• More than 60% of the Non-car Ownersinterested in becoming a Car Sharingmember would NOT considerpurchasing a new car in addition to theMembership
  11. 11. 11The likelihood to adopt Car Sharing is higher among therespondents using more transport modes for commutingSource: Frost & Sullivan analysis.N=1,639 All Respondents who referred to be Very unlikely, unlikely, likely or extremely likely to become a Car Sharing member.S9. In the past year, how often have you used the following modes of transportation or transport services? (Single Answer permode of transport)(1)TOP 2 BOX: Likely or Extremely likely to become a Car Sharing member in the future;(2)BOTTOM 2 BOX: Very unlikely or unlikely to become a Car Sharing member in the futureNo.ModesofTransportusedAverage number of transport modes used per Interest GroupTOTAL London Manch-esterBirming-hamEdin-burghParis Lyon Marseille Toulouse Berlin Munich Hamburg Colognen=2,348 n=131 n=136 n=126 n=128 n=152 n=128 n=129 n=113 n=143 n=175 n=128 n=150
  12. 12. 12Current and future Car Sharing Members are young,highly educated, travel on business, no kidsSource: Frost & Sullivan analysis.N= Current and Future (respondents who considered likely (4) or extremely likely (5) to adopt Car Sharing Services in the future).Q17. Are you currently a customer or a member of a Car Sharing service?Q32. How likely are you to sign up to a Car Sharing membership service in future?Current Car Sharing Members(n=181)Future Car Sharing Members(n=489)Age53% up to 34 years old41% in the age group 25 to 3449% are up to 34 years old36% in the age group 25 to 34GenderMale(54% male)Both(56% female)Business TravelHeavy business traveller(58% travel at several times or more per monthfor business)Business traveller(50% travel at least once per month forbusiness)Car OwnershipNone car owner(51% do not own a car)None car owner(50% do not own a car)EducationHigh education(67% with university or post graduate degree)High education(61% with university or post graduate degree)Household Size2 Members(64% with 2 or less members in the household)2 Members(65% with 2 or less members in the household)Marital StatusMarried/with a partner without children(72% without children in the household)Married/with a partner without children(72% without children in the household)
  13. 13. 13Consumers are most attracted by an all inclusive,convenient Car Sharing offeringVendor Your city public transport operatorPick up and dropoffPick up +drop off car anywhere withincityDistance to nextpick up and / ordrop off point orstationUp to 200 m (in UK: up to 0.125 miles)ParkingParking incl. anywhere in city at publicparking plus at dedicated parking spotsin front of main public transport stationsPre booking Not requiredGuarantee level forvehicle availabilityAlways available, 100%Vehicle type 4 seater onlyVehicle brandVolume brand, such as Peugeot, VW,Toyota, HyundaiEngine type PetrolMembership fee peryearNone, €0Mileage Charge Unlimited kms includedThe price point of €15.50 per hour has the highestpreference share of 16%Business Travellerseveral times a month25 to 34 year oldCar Owners driving morethan 10.000 km p.a.Total
  14. 14. 14Preference Share Analysis - Winning ConceptSource: Frost & Sullivan analysis.Conjoint simulation, N=2,348PreferenceSharePreference Share Simulation Winning Concept81% 72% 57% 40% 28% 20% 15% 12% 10% 9% 7% 6.5%Anchor point:€15.50 car per hour16%Price of car per hourHigh priceelasticity
  15. 15. 15At a price point of €15.50, the winning concept would achieve apreference share of 16% overall, but varies by CitySource: Frost & Sullivan analysis.Conjoint simulation, N=2,348• Respondents in the French Cities show the highest possible take up ratesLyon (n=181)Marseille (n=187)Paris (n=209)Toulouse (n=168)Munich (n=242)Total (N=2,348Cologne (n=210)London (n=211)Hamburg (n=190)Berlin (n=197)Edinburgh (n=186)Manchester (n=186)Birmingham (n=181)Preference ShareWinning Concept at €15.50 of car per hourTotalPreference Share Winning Concept at €15.50 of car per hourBy City
  16. 16. 16Significantly different on a significancelevel of 0.05. Tests are adjusted using theBonferroni correction.Car Sharing Service Members ProfileInterestingly, Audi and BMW Drivers have highest Car Sharing MembersCar Owners driving up to 10.000 km p.a.Car Owners driving more than 10.000 km p.a.Non OwnersA-Segment (Small)B-Segment (Basic)C-Segment (Compact)D-Segment (Medium)E-Segment (Executive) & F-Segment (Luxury)A-Segment (Small)BMWAudiOthersOVERALLSAMPLEMembers of CarSharing %Not Members ofCar Sharing %n=2,348 n=181 n=2,116The Car Sharing Members have a significantly higher number of non car owners and heavily drivers. The carowner members have a higher proportion of segment E&F vehicles and are mainly BMW and Audi drivers.All figures are in percentages
  17. 17. 17P2P Car Sharing is still in its nascent stage and is expected to co-exist with traditional Car SharingN= 1,252 (Car owners non members of Car Sharing Services who provided a rate from 1 to 5 in both questions)Q28. If you were not using your own car for certain time periods in a day/week, would you be interested to provide the same to a Car Sharing agency tobe used by others? (1 to 5 Rating Answer)Q30. Would you be interested to use someone else’s car through a Car Sharing agency while the car owner is not using the car?n=85 n=286 n=279 n=275 n=327Source: Frost & Sullivan analysis.• The interest in providing a private car to the be used by others is low, specially in the UnitedKingdom• Also the interest in using someone elses car is on a very moderate level only, but higher thanthe interest to providing a private car to the be used by others• The interest in providing a private car to the be used by others is low, specially in the UnitedKingdom• Also the interest in using someone elses car is on a very moderate level only, but higher thanthe interest to providing a private car to the be used by others
  18. 18. 18Key Success Factors for Car Sharing Operator
  19. 19. 19Key Conclusion
  20. 20. 20Global Car Sharing Studies• M813-18 Business Models and Opportunities in the European Traditional and Peer-to-Peer CarSharing Market - Completed (2012).• M4FA-18 Sustainable and Innovative Personal Transport Solutions - Strategic Analysis of Car SharingMarket in Europe – Completed (2010).• NB00-18 An Update on the Opportunities in the North American Market for Car Sharing Services -Completed (2012).• Strategic Analysis of Car Sharing Market in Asia Pacific – Completed (2012).• P49C-18 Strategic Analysis of Car Sharing Market in Japan – Completed (2011).• N748-18 Analysis of the Market for Car Sharing in North America – Completed (2010).• M79C-18 EU "Generation Y" Beliefs and Attitudes Towards Environment, Personal Mobility Needs,and Vehicle Preferences – Completed (2011).• N80C-18 U.S. Generation “Y”: Beliefs and Attitudes Towards Environment and Personal MobilityNeeds and Vehicle Preferences – Completed (2011).• M551-18 Executive Analysis of European and North American Automotive App Store Concepts andServices – Amidst Apps Ranging from Car Sharing to Navigation, Internet Radio is the Most PopularBrought-In App Being Developed by Automotive OEMs – Completed (2010).• M8AD-18 Competitive Benchmarking and Comparative Analysis of Mobility Strategies of Key GlobalOEMs – Completed (2013).
  21. 21. 21Next UM 3.0 Event – 19 and 20 June 20132 Day Event with First Day hosted in House of Parliament as a Parliamentary Debate
  22. 22. 22Next StepsDevelop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas orjoin our GIL Global CommunityJoin our GIL Community NewsletterKeep abreast of innovative growth opportunities
  23. 23. 23Your Feedback is Important to UsGrowth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other?Please inform us by “Rating” this presentation.What would you like to see from Frost & Sullivan?
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  25. 25. 25For Additional InformationKatja FeickCorporate CommunicationsAutomotive & Transportation+49 (0) 69 7703343katja.feick@frost.comMohamed MubarakProgram ManagerAutomotive & Transportation+90 212 709 8804 Extn: 132mohamedm@frost.comMartyn BriggsProgram Manager – MobilityAutomotive & Transportation0044 (0)207 915 7830Martyn.briggs@frost.comCyril CromierVP SalesAutomotive & Transportation+33 1 4281