The Niche Market of Carsharing

In an NY Daily News article, Navigant’s Sam Abuelsamid discusses the prospect of new carsharing businesses

NY Daily News wrote an article about the age-old notion of cars depreciating in value as soon as they leave the lot, and how carsharing services are flipping this on its head. New services are popping up all over the country giving owners the ability to rent out their own vehicles when idle, such as Turo, Getaround, and Maven.

“Everybody is trying to find the business model to make money and no one has really done it yet,” said Sam Abuelsamid, senior analyst for Navigant Research.

Furthermore, manufacturers like GM and BMW are jumping in offering services of their own with ridesharing and carsharing services, Maven and ReachNow. According to NY Daily News, many of these companies provide services including roadside assistance and complete DMV checks on car renters, but deciding who is trustworthy is up to the vehicle owners.

“Having strangers driving around in your car, there’s always the potential to misuse your car or leave it dirty,” Abuelsamid said. “In general, the market for individuals who want to rent out their cars will probably be a niche market compared to other mobility options.”

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